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MEMORANDUM
<br />TO:
<br />FROM:
<br />DATE:
<br />SUBJECT:
<br />...EHLERS
<br />PUBLIC FINANCE ADVISORS
<br />Brian Beeman, Assistant City Administrator
<br />Jason Aarsvold & Schane Rudlang - Ehlers
<br />November 22, 2022
<br />Reuter Walton TIF Request - 2310 Mounds View Blvd ("Woodale Apartments")
<br />In September 2022, the Mounds View Economic Development Authority (the "EDA") received an
<br />application for financial assistance from Reuter Walton Development (the "Developer") requesting
<br />Tax Increment Financing (TIF) in the present value amount of $2,400,000 over 26 years. The
<br />application detailed a proposal for the construction of a 140-unit affordable tax credit apartment
<br />project consisting of 1, 2, and 3-bedroom units. The apartment project would be located 2310
<br />Mounds View Blvd, currently owned by Christen Properties LLC.
<br />Ehlers prepared this memorandum, at the request of the EDA and City, to summarize our review
<br />of the project, specifically the budget and pro forma based on industry standards for construction,
<br />land acquisition, and project costs; as well as to ensure that all development costs, revenues, and
<br />expenditures have been appropriately accounted for and considered.
<br />Based on our review, the requested TIF assistance is more than what is necessary for the project
<br />to be "financially feasible". We've concluded the project could achieve feasibility with TIF
<br />assistance up to $1,817,000 an anticipated maximum term of 20-years. The table below provides a
<br />synopsis of the sources and uses associated with the project.
<br />SOURCES
<br />First Mortgage
<br />TIF Supported Mortgage
<br />Tax Credits
<br />Deferred Developer Fee (83% of Total Fee)
<br />Local Grants
<br />Other Public Sources
<br />TOTAL SOURCES
<br />Amount
<br />18,675,000
<br />1,817,000
<br />19,244,168
<br />3,628,818
<br />2,500,000
<br />25,000
<br />Pct.
<br />41%
<br />4%
<br />42%
<br />8%
<br />5%
<br />0%
<br />Per Unit
<br />133,393
<br />12,979
<br />137,458
<br />25,920
<br />17,857
<br />179
<br />45,889,986
<br />100% 327,786
<br />USES
<br />Acquisition Costs
<br />Construction Costs
<br />Professional Services
<br />Financing Costs
<br />Developer Fee
<br />Cash Accounts/Escrows/Reserves
<br />TOTAL USES
<br />Amount
<br />1,300,000
<br />35,053,900
<br />1,295,000
<br />3,191,086
<br />4,350,000
<br />700,000
<br />Pct.
<br />3%
<br />76%
<br />3%
<br />7%
<br />9%
<br />2%
<br />Per Unit
<br />9,286
<br />250,385
<br />9,250
<br />22,793
<br />31,071
<br />5,000
<br />45,889,986 100% 327,786
<br />BUILDING COMMUNITIES. IT'S WHAT WE DO.
<br />E info@ehlers-inc.com 1 (800) 552-1171
<br />www.ehlers-inc.com
<br />
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