07/02/2019 EDAC Packet - Laserfiche WebLink

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meetings to diligently meet that request. The following table provides a summary of the proposed financing package to the developer. Type of TIF Eligible Cost Financial Assistance Package Initial request $5,300,000 Reduction of request based on financial review $ 1,400,000 Reduction based on fee credits $ 300,000 Net Assistance through TIF est. 9.5 ears $3,600,000 Pooled TIF from Housing District 1-5 $382,000 Proposed TIF Assistance to Developer from TIF 1-13 New Housing TIF District over 8.5 years $3,218,000 We were able to reduce the original request of assistance from 15 years to lesser term by lowering the total reimbursable amount of eligible costs. We further reduced the term through the provision of City fee credits, as standard practice. And lastly, by including the value of the town homes (additional $6.OM) and utilizing pooled TIF dollars already on -hand resulted in a further reduced term estimated to be 8.5 years. In summary the following steps were followed to meet the Council directives: 1. Review and application of fee credits through City policy 2. Including town homes in boundaries of TIF District 3. Use of pooled TIF from existing Housing District 1-5 1. Review and application of fee credits • Using information submitted by the developer in the development application, City staff was able to determine the estimated fee credit amount that is consistent with City policy. The City will provide credit in the amount of approximately $300,000 to the developer for park dedication and trunk utility fees for work on public trail and trunk utility oversizing improvements. This number is an estimate and may change based on actual improvements and contract costs. 2) Including town homes in boundaries of TIF District At the May 6 City Council work session, there was a request to include the town home development within the boundaries of the TIF district to increase the projected revenues and ultimately result in a reduced term of assistance. The total estimated value of the taxable portion as provided by the County for the senior care building is approximately $22.9M. The preliminary value estimates for the town homes is about $300,000/unit resulting in an additional $6.OM of value. This provides more revenues in the TIF District as it captures all incremental taxes of the taxing entities, as opposed to the City's share only should the town homes not be included in the TIF District and go on the general tax rolls. The inclusion results in one less year of needed tax increment assistance reducing the term from an original 10.5 years to 9.5 years to meet the recommended total of $3.6M. Use of pooled TIF from existing Housing District 1-5 • We did additional due diligence to understand potential alternate funding sources that may be available to reduce the term of the TIF District and determined the City has existing funds from its' Housing TIF District No. 1-5 (Willow Ponds). The available amount is approximately $382,000. The funds from TIF 1-5 may only be used on other eligible affordable housing projects within the City. If the funds are not used, they will be redistributed to the County and the city could expect to receive only its share of the total (approximately 1/3). By using these funds for the proposed project, the amount of TIF from the The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2018 Baker Tilly Virchow Krause, LLP