06-08-2022 Council Packet - Laserfiche WebLink

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Unspent Transfers Increment not spent by December 31, 2025, must be returned to the fund(s) of the contributing TIF district(s). The distribution of returned amounts need not be proportional to the amount contributed, but the amount returned to each TIF district must not exceed the amount transferred from the district. The spreadsheet on the following page provides an overview of the initial financial analysis for each of the City’s existing Tax Increment Financing District to determine the estimated available amounts of unobligated funds that could potentially be available pursuant to this legislation. Current estimates of unobligated funds from all of the City’s districts is approximately $2.254M. None of the districts are reporting excess increment and are not projected to have excess increment. The total development costs from the developer’s financial materials is illustrated in the table below. Sources Amount Uses Amount Debt $8,165,000 Acquisition $240,000 Equity (Tax Credits) $7,794,854 Construction $13,656,631 Ramsey County $1,500,000 Professional Fees $1,138,636 TIF $1,000,000 Developer Fee $2,280,000 Deferred Developer Fee $466,826 Syndicator Fees $45,000 NOI During Construction $121,678 Financing Costs $1,388,510 Reserves $299,581 Total $19,048,358 Total $19,048,358 Tax increment financing has been identified as a tool that could either be provided as pay-as-you-go from a new housing tax increment district as reimbursement for eligible costs, or as upfront funding source through the temporary transfer authority and structured as a potential loan with interest repayment. The developer will use traditional affordable housing funding sources including tax credit equity and debt to finance initial project costs