Laserfiche WebLink
<br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />MEMORANDUM <br /> <br />TO: Michael Grochala, Community Development Director, City of Lino Lakes <br /> Sarah Cotton, Finance Director, City of Lino Lakes <br /> <br />FROM: Mikaela Huot, Vice President/Consultant <br /> <br />DATE: March 29, 2019 <br /> <br />SUBJECT: Financial Review of Preliminary Application for Assistance through Tax Increment Financing <br /> (TIF) for Proposed Lyngblomsten Senior Care Campus Project <br /> <br />Background <br />The City of Lino Lakes has received an application for financial assistance through Tax Increment Financing (TIF) to <br />assist with financing a portion of the extraordinary development costs related to the construction of an approximate <br />200-unit senior care campus and 19 adjacent rental townhomes. The project also includes the acquisition of several <br />properties on the corner of County Road J and CSAH 49 where the senior housing development will not occur but will <br />present future development opportunities. The total investment budget including acquisition of all properties is about <br />$77M and includes approximately $9.6M of TIF eligible expenditures including site improvements, acquisition, and <br />demolition. <br /> <br />City Council will be discussing the application with City staff at the April 1 work session. The purpose of this <br />memorandum is to provide a summary of review status of the application and next steps Springsted will incorporate <br />regarding the submitted materials. Included will be review of the development project costs, sources of revenue, and <br />operating pro forma as provided by the developer to assist the City with making a determination if the project as <br />proposed would be unlikely to proceed without the requested Tax Increment Financing (TIF) assistance, and to <br />determine the appropriate amount, if any, of financial assistance based on TIF-eligible costs. <br /> <br />Developer Request for Assistance <br />Assistance has been requested for financing a portion of the costs associated with completion of the project. The <br />developer has proposed the $77.2 million project will be funded by an estimated $9.8 million of equity and $66 million <br />through a bank loan with a TIF request of $5.3 million. The developer’s submitted information provides that the <br />request for assistance would be pay-as-you-financing as reimbursement for extraordinary development costs and <br />has requested a term of 15 years. Additional analysis regarding the financing components, estimated amount of <br />Springsted Incorporated <br />380 Jackson Street, Suite 300 <br />Saint Paul, MN 55101-2887 <br />Tel: 651-223-3000 <br />Fax: 651-223-3002 <br />www.springsted.com