TIF Presentation 6/12/17 Site Location Site Plan Joseph - - PowerPoint PPT Presentation

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Aug 17, 2023 817 likes •1.01k views

TIF Presentation 6/12/17 Site Location Site Plan Joseph Development Housing Experience Valleyhigh Flats (60 units) Rochester, MN Opening February 2018 TIF Request How the (estimated) numbers would work out: Current taxes paid: $1,496

SLIDE 1

TIF Presentation – 6/12/17

SLIDE 2

Site Location

SLIDE 3

Site Plan

SLIDE 4

Valleyhigh Flats (60 units) Rochester, MN Opening February 2018

Joseph Development Housing Experience

SLIDE 5

TIF Request

 How the (estimated) numbers would work out:



Current taxes paid: $1,496



Projected taxes paid after project completion: $62,810



Projected increment:$61,314 x 94.66% = $58,039/year reimbursed to property;

 City will receive $3,276 in taxes/year in addition to the $1,496

 15 years; 5% interest rate = $564,584 present value

 NOT an up-front contribution from the City  Bank will take the $58,039 in additional income and allow us to increases our

mortgage by $670,000 up front.

SLIDE 6

TIF Request

 Why 15 years?

 Investor requires a permanent mortgage ‘no less than’ 15 years.

Proposed mortgage will have 30 year amortization.

 By having TIF term equal to or greater than mortgage term, TIF can

be based on 30 years versus just the length of the TIF note.

 TIF counts for “local contribution” points for our Tax Credit

Application, thus making it more competitive.

SLIDE 7

Comparison Current use versus TIF development

20000 40000 60000 80000 100000 120000 140000

TIF Comparison

No Development TIF Development

SLIDE 8

Financial Snapshot

SLIDE 9

Financial Snapshot

SLIDE 10

Financial Snapshot

WITH TIF

SLIDE 11

Financial Snapshot

WITHOUT TIF – Negative Cash Flow

SLIDE 12

Financial Snapshot

WITH TIF

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Financial Snapshot

WITHOUT TIF – Financing Gap

SLIDE 14

TIF In Other Projects:

 Georgetowne Homes (Rochester) - $650,000 (15yr)  Georgetowne Square (Rochester) - $189,000 (25yr)  Interlaken Place (Waconia) - $300,000 (10yr)  Sibley Cove (Maplewood) - $1,175,234 (25yr)  Washington Court (Minneapolis) - $300,000 (n/a)  Willow Ridge (Vadnais Heights) - $275,000 (15yr)  Village on Third (Rochester) - $660,000 (25yr)  Wash Village East (Rochester) - $195,000 (25yr)  Ashland Place (Rochester) - $250,000 (15yr)  The Meadows (Rochester) - $350,000 (15yr)  1st Ave Flats (Rochester) - $435,421 (25yr)

SLIDE 15

Recent TIF awarded:

 Edina: $550,000 TIF for 39 units ($14,102 per unit)  Maplewood: $716,000 TIF for 50 units ($14,320/unit)  Golden Valley: $514,804 TIF for 45 units ($11,440/unit)  Minnetonka: $1,000,000 TIF for 65 units ($15,384/unit)  Mounds View: $550,000 TIF for 60 units ($9,167/unit)

SLIDE 16

Our company has received 15 awards from MHFA for 9% credits; 14 received local contribution.

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Benefits of TIF

 City would still receive more taxes than they currently are collecting

from existing parcels.

 City would not be “out of pocket” funds since property would continue

to pay existing taxes and 10% of increment.

 Project would pay initial SAC/WAC, Permit, and other City fees as

result of development.

 Project would encourage further redevelopment in area.  TIF makes development more competitive for other funds. Would

leverage $11.2 million in private and federal sources.

 City will collect more if tax rate increases. TIF is only based on the tax

rate the year the TIF district is established.

SLIDE 18

Timeline

 Potential Timeline

 June 12, 2017 – PUD Approval & TIF Approval by City Council  June 15, 2017 – Submit application for Section 42 Tax Credits  October 15, 2017 – Tax Credits Awarded (hopefully)  May 2018 – Close and begin construction  February 2019 – Finish construction & tenants move in