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<br /> <br />Memo <br />To: Mark Casey – City Manager <br /> <br />From: Stacie Kvilvang – Ehlers <br /> <br />Date: May 29, 2018 <br /> <br />Subject: Lowry Grove TIF Request <br /> <br /> <br />Continental properties submitted a TIF application for redevelopment of the former Lowry Grove Trailer <br />Home Park located at 2501 Lowry Avenue. They have received formal land use approval for development of <br />the site into three (3) rental projects as noted below: <br /> <br />Market Rate (Non-Age Restricted): 255 Units <br />Senior Independent: 61 Units <br />Assisted Living/Memory Care: 128 Units <br />TOTAL 444 Units <br /> <br />They have requested that the City create a redevelopment TIF district (26-year term) and provide them with <br />approximately $18.4 million in TIF assistance to facilitate the development of these units. You have requested <br />Ehlers to review their TIF application and development pro forma to determine how much TIF, if any is <br />warranted. Below is a summary of our findings: <br /> <br />1. Anticipated TIF to be generated over 26-year term is approximately $13.3 million ($5.1 million less than <br />they requested) <br /> <br />2. Extraordinary costs for redeveloping the site are estimated as follows, which could be TIF eligible (per <br />numbers provided by the developer): <br />Environmental remediation and studies: $395,000 <br />Demolition of existing structures: $90,000 <br />TOTAL $485,000 <br /> <br />Note: Land acquisition costs are not considered extraordinary costs because the overall <br />price per unit is within market AND the developer negotiated and acquired the property <br />before any formal TIF application was submitted to the City. <br /> <br />3. Site improvement costs, which could be TIF eligible (per numbers provided by the developer): <br />Earthwork, Soil and Grading $812,103 <br />Roads, Sidewalks, and Paving $463,047 <br />Traffic Improvements and Studies $587,500 <br />Utilities $964,475 <br />Storm Water $1,105,020 <br />Green Space and Landscaping $267,450 <br />Lighting and Signage $144,000 <br />Total $4,343,595 <br /> <br />Total TIF eligible costs (#2 and #3 above) equate to approximately $4.828 million. Based upon our review of <br />their development proformas, we are of the opinion that the projects could be developed without any TIF <br />assistance from the City.