HomeMy WebLinkAboutCC WORKSESSION PACKET 05292018If you would like to request special accommodations or alternative formats, please contact the City Clerk at 612-782-3313
or email city@savmn.com. People who are deaf or hard of hearing can contact us by using 711 Relay.
Work Session Agenda
Tuesday, May 29, 2018
7:00 p.m.
1. Tax Increment Financing (TIF) Request. Stacie Kvilvang, Financial Advisor, Ehlers
presenting
2. Adjournment
Memo
To: Mark Casey – City Manager
From: Stacie Kvilvang – Ehlers
Date: May 29, 2018
Subject: Lowry Grove TIF Request
Continental properties submitted a TIF application for redevelopment of the former Lowry Grove Trailer
Home Park located at 2501 Lowry Avenue. They have received formal land use approval for development of
the site into three (3) rental projects as noted below:
Market Rate (Non-Age Restricted): 255 Units
Senior Independent: 61 Units
Assisted Living/Memory Care: 128 Units
TOTAL 444 Units
They have requested that the City create a redevelopment TIF district (26-year term) and provide them with
approximately $18.4 million in TIF assistance to facilitate the development of these units. You have requested
Ehlers to review their TIF application and development pro forma to determine how much TIF, if any is
warranted. Below is a summary of our findings:
1. Anticipated TIF to be generated over 26-year term is approximately $13.3 million ($5.1 million less than
they requested)
2. Extraordinary costs for redeveloping the site are estimated as follows, which could be TIF eligible (per
numbers provided by the developer):
Environmental remediation and studies: $395,000
Demolition of existing structures: $90,000
TOTAL $485,000
Note: Land acquisition costs are not considered extraordinary costs because the overall
price per unit is within market AND the developer negotiated and acquired the property
before any formal TIF application was submitted to the City.
3. Site improvement costs, which could be TIF eligible (per numbers provided by the developer):
Earthwork, Soil and Grading $812,103
Roads, Sidewalks, and Paving $463,047
Traffic Improvements and Studies $587,500
Utilities $964,475
Storm Water $1,105,020
Green Space and Landscaping $267,450
Lighting and Signage $144,000
Total $4,343,595
Total TIF eligible costs (#2 and #3 above) equate to approximately $4.828 million. Based upon our review of
their development proformas, we are of the opinion that the projects could be developed without any TIF
assistance from the City.