Discussion and possible action to approve a budget transfer increasing the Capital Improvement Program budget for project ED00036 by $2.05M to complete half-street improvements around all sides of the 56-acres of FIVE North property.

The City entered into a Joint Development Agreement (JDA) with Amkor Technology and Vistancia Development, which included funding several full street public infrastructure improvements.  These improvements were budgeted in the FY25 and FY26 CIP programs at $4.95M.

Following the Property Exchange Agreement and subsequent JDA Termination with Amkor, the City is owner of 56-acres of real property in FIVE North, which carries with it responsibility for half-street improvements on all four sides of the property.  The estimated cost for the full street improvements is roughly $13M.  Amendment No. 4 of the Vistancia Development Agreement establishes a 50-50 cost share with Vistancia for the construction of these roads.  In order to fund its proportionate share, project ED00036 requires additional funding of $2.05M to cover the $6.5M and provide an 8% contingency.

On August 28th, Council will also discuss and considered a Property Exchange Agreement and Economic Development Agreement Amendment #3 with Amkor, and a JDA Termination and Amendment No. 4 to the Vistancia DA prior to taking a vote on this matter.

If approved, the cash for this budget amendment will come from the Half Cent Sales Tax Fund. This funding was previously accounted for in the 5-year forecast for this fund, and is available for this purpose.