06-11-2025 Workshop Packet - Laserfiche WebLink

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o Estimated $200,000/unit for 106 total units o $21,200,000 total taxable value • Incremental value based on difference between existing and new land/building value • Construction commences in 2026 and is completed in 2027 o Project values 100% complete for assess 2028 and taxes payable 2029 o Delay first increment until payable 2029 • Net present value (discount) rate of 5.5% • 2% annual market value inflation Table 2a: Estimated Tax Increment Revenues based on 26 Years Preliminary revenue projections based on maximum 26-year term Existing Base Land Value $264,100 Estimated Total Taxable Value $21,200,000 Estimated annual available increment (full buildout) $59,162 Total gross tax increment (26 years) $1,997,787 City retainage (10%) $199,777 Net amount available for development (90%) $1,798,010 Estimated Present Value Revenues (26 Years) at 5.5% $800,128 Table 2b: Estimated Tax Increment Revenues based on reduced term of 15 Years Preliminary revenue projections based on reduced term of district 15 Years 18 Years Existing Base Land Value $264,100 $264,100 Estimated Total Taxable Value $21,200,000 $21,200,000 Estimated annual available increment (full buildout) $59,162 $59,162 Total gross tax increment (26 years) $1,024,837 $1,269,357 City retainage (10%) $102,482 $126,934 Net amount available for development (90%) $922,355 $1,142,423 Estimated Present Value Revenues (26 Years) at 5.5% $543,619 $623,209 The City has the option to consider providing tax increment to the project following receipt of the developer’s request for tax increment assistance. There are also considerations as to the level and terms of assistance. As discussed previously, the developer has included the maximum term of tax increment collections from a housing district (up to 26 years) that results in the greatest level of TIF assistance. Alternatively, the City could offer a reduced term of assistance (15 -18 years) that aligns with the term of the cash flow projections, or no assistance at all, in which case the developer will be required to find alternate sources (including potential grant funding from LCDA and other potential grant sources) to close the financing gap. The developer has also indicated local support through TIF results in a stronger application for debt financing and tax credit equity that is necessary for the project to proceed. Feasibility of alternate levels of assistance are anticipated to be subject to additional review and discussions with the developer. The developer has stated that local support from the City will be necessary to be awarded LCDA funds and any potential additional funding sources (i.e. DEED) as the grant funding would be awarded to the City of Little Canada. The grant funds require commitment and submission of the application by the City and with commitment as related to financial participation through TIF. Alternate possibilities for closing the gap are subject to financial feasibility and market conditions including increased deferred developer fee, reduced interest rates, other grant funding sources and increased debt coverage.