Laserfiche WebLink
• <br /> • <br /> The majority of funding for this property will come in the form c" <br /> conventional mortgage loan financing. We anticipate being able t.. <br /> raise approximately $2,920, 000 in long term mortgage loan financing <br /> (631 of costs) . <br /> The remaining funding for this property will come from an equity <br /> investor who will acquire housing tax credits and fund equity <br /> dollars. The federal government provides these tax credits to <br /> investors based cn project costs and the number of units that will <br /> be set aside for residents who earn at or below 601 of county <br /> median income ($20, 800/year for 1-person households and <br /> $23 , 800/year for 2-person households) . In order to, receive the tax <br /> credits, we must provide a deed restriction stating that these <br /> units will remain affordable for 15 years, which we will extend for • <br /> an additional 15 years. We anticipate being able to raise <br /> approximately $1,750,000 in equity from the sale of tax credits .to <br /> an investor. <br /> In the state of Minnesota, housing tax credits are allocated to - <br /> projects based on a competitive application process administered by <br /> the Minnesota Housing Finance Agency (Mi:A) . Without the City's <br /> TIF assistance, we would be unable to access tax credit financing, <br /> thus making this project infeasible. In other words, the City' s <br /> TIP assistance allows us to leverage approximately $1, 750, 000 in <br /> equity financing that might otherwise not be available. <br /> TIS' cALcrL TION <br /> • <br /> Cur preliminary discussions with the Ramsey Cbunty Assessor <br /> indicate that the property will generate the following real estate <br /> tax levels, and thus the following tax increment: <br /> Value = 80 units X $43 , 000/unit = $3 , 440, 000 <br /> Title II taxes = $320, 000 land X 3 . 4% X 1 . 4437 = $ 15 , 761 <br /> $3 , 120, 000 building X 2 . 3% X 1. 4487. s $ 103 . 9x; <br /> Total Annual Tax = S 119 , 7_-c <br /> SAY S 120 . 000 <br /> 1st full year tax increment = $ 120 , 000 <br /> Current Land Tax (7, 628) <br /> Total increment generated = 112 , 372 <br /> X SCA <br /> Requested 1st year TIP assistance = 510„ 34 <br /> • <br /> • <br /> ',,•?I.y� �••� 'Z-r�S��-�%3i�1�.Y..i�� j,,���•^•;�--5. .�."'�7►+r.� —•.�•1r�-r3 �;�•� �;-�-.af ?T - <br /> .:i1"}►-"`�..i.��",6.2�,1,i Y•��i. t.c.1`_' : T�.r'"-=�P'9_ V_.k V'.vY:�.r_Zp :__ +N�s,.:�*�^J r-'7r .^"Y 7�-+�c.,_`. - <br />