04-08-2019 Council Packet - Laserfiche WebLink

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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 Sources Amount Uses Amount Equity $9,800,000 Property Acquisition $3,620,000 Debt $66,000,000 Building Costs $44,855,442 TIF * $5,300,000 Site Development $6,000,000 Soft Costs $19,570,162 Financing Costs $850,000 Contingencies $2,325,267 Total $77,220,871 Total $77,220,871 * TIF assistance would be provided as pay-as-you-go (reimbursement) and not upfront Tax Increment Financing Assumptions Springsted made certain assumptions to calculate the estimated amount of tax increment revenues generated by the project. Those assumptions include the following:  Range of collection term o 5, 7.5, 10 and 13.5 years  Minimum term up to developer request o Maximum term for housing districts is 26 years  25 years after receipt of first increment o First year taxes payable 2022  construction commences in 2019 and completed in 2020  Full year collected in 2022  Total base value for land and building o Housing District: $634,300  Parcel ID: 31-31-22-43-0018  Total completed value following development o Housing TIF District  100 independent living units valued at $21,990,000  50 assisted living units valued at $6,840,000  Total estimated taxable value of $28,830,000  Preliminary – based on construction cost estimates  Construction schedule o Commences in 2019 and complete in 2020 o Partial value as of assess Jan. 1, 2020 for taxes payable 2021 o Full value as of assess Jan. 1, 2021 for taxes payable 2022 o Election to delay receipt of first increment until full value realized  Payable 2019 tax rates constant o Combined rate of 117.574% o ISD 12 and watershed district included o Will change each year with actual rates  Tax rates, class rates and future market values o Rental (Housing TIF District)  1.25%  No annual market value inflator  Net present value o Discount rate of 5.0% o Subject to financing assumptions Tax Increment Revenue Estimates Based on the assumptions outlined above and the City’s past practice for terms of TIF Districts, the projected tax increment revenues that may be generated from the project are shown in the chart below.