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The ma j cr_t*. cf f•.:ndi. for " is pert; will comae in the foil c' <br /> conventional_ me o ace loan financing. anticipate beingt <br /> cam_ We a _ a .� able t- <br /> raise apprtximate; y $2 , 920 , 000 in long term acrtgage Ican financing <br /> ( 32% cf costs) . <br /> The remaining funding for this property will come from an ec itv <br /> investor who w.11 acc..-re hcusing tax credits and ::nd ecuity <br /> dc_l=rs . The federal tvernment provides these tax credits <br /> investors based cn project costs and the number of units that will <br /> be set aside for residents who earn at cr below 50% cf county <br /> median income ( $20, 300/yea: 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• _cr <br /> an additional 15 years. We anticipate being able ' to raise <br /> app cximately $7 , 750, 000 in ec±:- 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 cn a competitive amyl i ca`i an process administered by <br /> the Minnesota Housing Finance Agency ( - A) . W{th u t 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 /> :'I7 assistance allows us to leverage approximately $1 , 750 , 000 in <br /> equity financing that might otherwise not be available. <br /> �?? CX,CdC7 T:ON <br /> •Our :re1Iainar; disc.:ssicns with the Ramsey County Assessor <br /> indicate that the proper`y will generate the following real estate <br /> tax levels and thus the following tax increment: <br /> Value = 80 units X $43 , 000/unit = $2 , 440, 000 <br /> Title -- `.axes a $^ 2.'1 000 lana X 7 . 42: X ^— = $ 15 , 7E1 <br /> - $2 , 120 , 000 buildino X 2 . 2y X 1 . 44,F$7 .mac $ 102 . F.=7; <br /> T .t3_ Annual Tax = 5 <br /> SAY c -r0 . nnn <br /> 1st full Veal tax increment- crane..^.t _ c ?C nen <br /> Cu__en,. =end Tax (7 . 770 <br /> ncremen- = 112 , 272 <br /> .� <br /> Recue_s..ed 1st year assistance 910 y.. '8.7)4-2 <br />