HomeMy WebLinkAboutItem IV - TID 39 Cabrini Project Plan g'%' EHLERS
LEADERS IN PUBLIC FINANCE
December 17, 2019
Project Plan for the Creation of
Tax Incremental District No. 39
(Cabrini School Redevelopment)
Oshkosh
Organizational Joint Review Board Meeting: Scheduled for December 17, 2019
Public Hearing: Scheduled for December 17, 2019
Approval by Plan Commission: Scheduled for December 17, 2019
Adoption by Common Council: Scheduled for January 14, 2020
Approval by the Joint Review Board: Scheduled for January 20, 2020
BUILDING COMMUNITIES. IT'S WHAT VILE DO. FTK Info@@hIem-Inn.ream 1(000)552 IM ww►wAhlers-inc.com
Tax Incremental District No. 39 Creation
Project Plan
City of Oshkosh Officials
Common Council
Lori Palmeri Mayor
Steve Herman Deputy Mayor
Debra L. Allison-Aasby Council Member
Jake Krause Council Member
William Miller Council Member
Matt Mugerauer Council Member
Bob Poeschl Council Member
City Staff
Mark Rohloff City Manager
Allen Davis Community Development Director
Lynn Lorenson City Attorney
Mark Lyons Planning Services Manager
Kelly Nieforth Economic Development Services Manager
Russ Van Gompel Finance Director
Pamela Ubrig City Clerk
Plan Commission
Thomas Fojtik, Chair John Hinz
Kathleen Propp,Vice-Chair John Kiefer
Mamadou Coulibaly Justin Mitchell
Lynnsey Erickson Lori Palmeri,Mayor
Mike Ford Thomas Perry
Derek Groth
Joint Review Board
Mark Rohloff, City Manager City Representative
Mark Harris, County Executive Winnebago County
Amy Van Straten, Chief Financial Officer Fox Valley Technical College District
Barbara Herzog, School Board President Oshkosh School District
Burk Tower Public Member
Table of Contents
EXECUTIVE SUMMARY...........................................................................................................................................4
TYPE AND GENERAL DESCRIPTION OF DISTRICT........................................................................................7
PRELIMINARY MAPS OF PROPOSED DISTRICT BOUNDARY......................................................................8
MAPS SHOWING EXISTING USES AND CONDITIONS.................................................................................10
PRELIMINARY PARCEL LIST AND ANALYSIS.................................................................................................12
EQUALIZED VALUE TEST.....................................................................................................................................13
STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PUBLIC WORKS AND OTHER
PROJECTS................................................................................................................................................................14
MAP SHOWING PROPOSED IMPROVEMENTS AND USES.........................................................................15
DETAILED LIST OF PROJECT COSTS ..............................................................................................................17
ECONOMIC FEASIBILITY STUDY, FINANCING METHODS, AND THE TIME WHEN COSTS OR
MONETARY OBLIGATIONS RELATED ARE TO BE INCURRED..................................................................18
ANNEXEDPROPERTY...........................................................................................................................................23
ESTIMATE OF PROPERTY TO BE DEVOTED TO RETAIL BUSINESS......................................................23
PROPOSED ZONING ORDINANCE CHANGES................................................................................................23
PROPOSED CHANGES IN MASTER PLAN, MAP, BUILDING CODES AND CITY OF OSHKOSH
ORDINANCES..........................................................................................................................................................23
RELOCATION...........................................................................................................................................................23
ORDERLY DEVELOPMENT OF THE CITY OF OSHKOSH.............................................................................24
LIST OF ESTIMATED NON-PROJECT COSTS.................................................................................................24
OPINION OF ATTORNEY FOR THE CITY OF OSHKOSH ADVISING WHETHER THE PLAN IS
COMPLETE AND COMPLIES WITH WISCONSIN STATUTES 66.1105......................................................25
CALCULATION OF THE SHARE OF PROJECTED TAX INCREMENTS ESTIMATED TO BE PAID BY
THE OWNERS OF PROPERTY IN THE OVERLYING TAXING JURISDICTIONS......................................26
SECTION 1 :
Executive Summary
Description of District
Tax Incremental District ("TID") No. 39 ("District") is a proposed district in need of rehabilitation or
conservation consisting of a 1.28-acre parcel at the location of the former St. Francis Cabrini School
which had stood vacant since 2017. The City has received an application from Northpointe Development
Corporation ("Developer") for tax incremental financing ("TIF") assistance to support rehabilitation of
the school structure for use as low-income senior apartments ("Project"). The Project will include
construction of approximately 35 apartment units and 26 single car garage units as well as surface
parking. The Project would be financed with a combination of Low-Income Housing Tax Credits
(LIHTC), Historic Tax Credits, Community Development Block Grant funds and a "pay as you go"
development incentive provided by the District. Developer intends to make application in early January
2020 to the Wisconsin Housing & Economic Development Authority for the tax credits. If credits are
awarded, Developer expects to commence construction in October of 2020 with Project completion and
occupancy in the summer of 2021. Developer is requesting creation of the District at this time as the
application for tax credits must include documentation of the Project's funding sources and financial
feasibility.
Authority
The City is creating the District under the provisions of Wis. Stat. § 66.1105.
Estimated Total Project Cost Expenditures
The City anticipates making total expenditures of $582,500 ("Project Costs") to undertake the projects
listed in this Project Plan ("Plan"). Project Costs include a $500,000 development incentive, and an
estimated $82,500 in District administrative expense. The potential incentive amount is based on
Developer's assistance request. To the extent development incentives are provided, the amounts, timing
of and related conditions will be determined based on the City's review and confirmation of a
demonstrated financing gap and may therefore vary from the assumptions used in the Plan for purposes of
assessing economic feasibility.
Incremental Valuation
The City projects that an incremental increase in land and improvements value of approximately
$1,830,000 will result from the Project. Creation of this additional value will be made possible by the
Project Costs made within the District. Assumptions as to the development timing and associated values
are included in Section 10 of this Plan.
Expected Termination of District
Based on the Economic Feasibility Study located within Section 10 of this Plan, the City anticipates that
the District will generate enough tax increment to pay all Project Costs by the year 2035, reflecting 14
years of tax increment collections, and 16 years of total elapsed time. If necessary, the District would be
permitted to remain open for up to 29 years, allowing for up to a total of 27 years of tax increment
collection.
TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 4 December 17, 2019
Summary of Findings
As required by Wis. Stat. § 66.1105, and as documented in this Plan and the exhibits contained and
referenced herein,the following findings are made:
1. That "but for" the creation of this District, the development projected to occur as detailed
in this Plan: 1) would not occur; or 2) would not occur in the manner, at the values, or
within the timeframe desired by the City. The City recognizes the community need for
affordable senior housing which typically requires TIF participation. The Developer's application
for TIF assistance reflects an Internal Rate of Return of 4.04% for the tax credit investor if
$500,000 in development incentives are provided to the Project, and a 1.41% return without
incentives. Developer has further stated that tax credit investors typically seek a 4% to 5.5%
return on similar projects. Based on the Developer's representations in their application for TIF
assistance, the City has concluded that the Project would not likely proceed without a
development incentive. The specific amount and terms of any incentive provided to the Project
will be subject to additional due diligence undertaken by the City prior to approval of a
development agreement to include verification of the Project's sources and uses, projected
cashflows, financing gap and investor returns. The City has elected to defer further analysis until
the Developer has secured the tax credit allocation for the Project.
2. The economic benefits of the District, as measured by increased employment, business and
personal income, and property value, are sufficient to compensate for the cost of the
improvements. In making this determination, the City has considered that in addition to the
incremental value expected to be created, the Project will result in rehabilitation and conservation
of the former school building, creation of affordable senior housing, and provision of
employment and commercial opportunities related to the construction and operation of the
Project.
3. The benefits of the proposal outweigh the anticipated tax increments to be paid by the
owners of property in the overlying taxing jurisdictions. As required by Wis. Stat. §
66.1105(4)(i)4., a calculation of the share of projected tax increments estimated to be paid by the
owners of property in the overlying taxing jurisdictions has been prepared and can be found in
Appendix A of this plan. However, because the Project would not occur without the use of tax
incremental financing, these tax increments would not be paid but for creation of the District.
Accordingly, the City finds that the benefits expected to be realized as set forth in this Plan
outweigh the value of the tax increments to be invested in the Project.
4. Not less than 50% by area of the real property within the District is in need of rehabilitation or
conservation within the meaning of Wis. Stat. § 66.1337(2m)(a) and as further detailed in Section
5 of the Plan.
5. Based on the foregoing finding, the District is designated a district in need of rehabilitation or
conservation based on the identification and classification of the property included within the
District.
6. The Project Costs relate directly to rehabilitating and conserving property, consistent with the
purpose for which the District is created.
TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 5 December 17, 2019
7. Improvements to be made in the District are likely to significantly enhance the value of
substantially all of the other real property in the District.
8. The equalized value of taxable property in the District, plus the incremental value of all existing
tax incremental districts within the City does not exceed 12% of the total equalized value of
taxable property within the City.
9. That there are no parcels to be included within the District that were annexed by the City within
the three-year period preceding adoption of this Resolution.
10. That none of the territory within the District will be devoted to retail business at the end of the
District's maximum expenditure period,pursuant to Wis. Stat.§ 66.1105(5)(b).
11. The Plan for the District is feasible and is in conformity with the Master Plan of the City.
TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 6 December 17, 2019
SECTION 2:
Type and General Description of District
The District is a proposed district in need of rehabilitation or conservation consisting of a 1.28 acre parcel
at the location of the former St. Francis Cabrini School which had stood vacant since 2017. The City has
received an application from Developer for TIF assistance to support rehabilitation of the school structure
for use as low-income senior apartments. The Project will include construction of approximately 35
apartment units and 26 single car garage units as well as surface parking. The Project would be financed
with a combination of Low-Income Housing Tax Credits (LIHTC), Historic Tax Credits, Community
Development Block Grant funds and a "pay as you go" development incentive provided by the District.
Developer intends to make application in early January 2020 to the Wisconsin Housing & Economic
Development Authority for the tax credits. If credits are awarded, Developer expects to commence
construction in October of 2020 with Project completion and occupancy in the summer of 2021.
Developer is requesting creation of the District at this time as the application for tax credits must include
documentation of the Project's funding sources and financial feasibility.
TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 7 December 17, 2019
SECTION 3:
Preliminary Maps of Proposed District Boundary
Tax Increment District #39
21, E Cabrini School Redevelopment ciry
District Boundary Oshkosh
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TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 8 December 17, 2019
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Gabrini School Redevelopment C6tAow
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TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 9 December 17, 2019
SECTION 4:
Maps Showing Existing Uses and Conditions
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TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 10 December 17, 2019
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TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 11 December 17, 2019
SECTION 5:
Preliminary Parcel List and Analysis
The District will consist of a single tax parcel: Lot _ ("Lot") of a Certified Survey Map approved on
,2019. As of January 1,2019, the Lot was part of the following parcel:
Parcel Number: 04-0435-000
Address: 605 Merritt Avenue
Owner: St. Mary's Congregation
The Lot comprises 1.28 acres of the original 2.51-acre parent parcel and is the site of the former St.
Francis Cabrini School. The school structure, which has sat vacant for the past three years, will be
converted to a 35-unit low income senior apartment complex is in need of rehabilitation or conservation
as defined in Wis. Stat. § 66.1337(2m)(a). Specifically, the Project will involve carrying out plans for a
program of voluntary repair and rehabilitation of buildings or other improvements as identified below.
The rehabilitation of the building will include:
• ADA accessibility improvements which includes installing an elevator.
• The interior must be modified for apartments which will include new code-compliant spaces for
bedrooms,bathrooms and kitchens.
• The plumbing system must be replaced.
• The HVAC system must be replaced.
• The electrical system must be replaced.
The conservation of the building exterior will include:
• Brick maintenance and tuck pointing.
• Window replacement.
• Door replacement.
• Roof and stairway repairs as needed.
TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 12 December 17, 2019
SECTION 6:
Equalized Value Test
The following calculations demonstrate that the City expects to be in compliance with Wis. Stat. §
66.1105(4)(gm)4.c., which requires that the equalized value of the taxable property in the proposed
District,plus the value increment of all existing tax incremental districts, does not exceed 12%of the total
equalized value of taxable property within the City.
The equalized value of the increment of existing tax incremental districts within the City, plus the base
value of the proposed District, totals $176,732,100, or about 4.2% of the City's total equalized value. This
value is less than the maximum of$505,391,460 in equalized value that is permitted for the City.
City of Oshkosh, Wisconsin
Tax Increment District#39
Valuation Test Compliance
District Creation Date 1/14/2020
Valuation Data
Currently Available
2019
Total EV(TID In) 4,211,595,500
12%Test 505,391,460
Increment of Existing TIDs 176,732,100
Projected Base Value of District 0
Total Value Subject to 12%Test 176,732,100
Compliance '
TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 13 December 17, 2019
SECTION 7:
Statement of Kind, Number and Location of Proposed
Public Works and Other Projects
Project Costs are any expenditure made, estimated to be made, or monetary obligations incurred or
estimated to be incurred as outlined in this Plan. Project Costs will be diminished by any income, special
assessments or other revenues, including user fees or charges, other than tax increments, received or
reasonably expected to be received in connection with the implementation of the Plan. If Project Costs
incurred benefit territory outside the District, a proportionate share of the cost is not a Project Cost. Costs
identified in this Plan are preliminary estimates made prior to design considerations and are subject to
change after planning, design and construction is completed. With all Project Costs, the costs of
engineering, design, survey, inspection, materials, construction, restoring property to its original
condition, apparatus necessary for public works, legal and other consultant fees, testing, environmental
studies,permits,updating City ordinances and plans,judgments or claims for damages and other expenses
are included as Project Costs. The following is a list of public works and other tax incremental financing
eligible Project Costs that the City expects to make, or may need to make, in conjunction with the
implementation of the District's Plan. The map found in Section 7 of this Plan along with the Detailed
List of Project Costs found in Section 9 provide additional information as to the kind, number and
location of potential Project Costs.
Community Development
Cash Grants (Development Incentives)
The City may enter into agreements with property owners, lessees, or developers of land located within
the District for sharing costs to encourage the desired kind of improvements and assure tax base is
generated sufficient to recover Project Costs. No cash grants will be provided until the City executes a
developer agreement with the recipient of the cash grant. Any payments of cash grants made by the City
are eligible Project Costs.
Miscellaneous
Professional Service and Organizational Costs
The costs of professional services rendered, and other costs incurred, in relation to the creation,
administration and termination of the District, and the undertaking of the projects contained within this
Plan, are eligible Project Costs. Professional services include but are not limited to: architectural;
environmental; planning, engineering; legal; audit; financial; and the costs of informing the public with
respect to the creation of the District and the implementation of the Plan.
Administrative Costs
The City may charge to the District as eligible Project Costs reasonable allocations of administrative
costs, including, but not limited to, employee salaries. Costs allocated will bear a direct connection to the
time spent by City employees relating to the implementation of the Plan.
TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 14 December 17, 2019
SECTION 8:
Map Showing Proposed Improvements and Uses
" Tax Increment District #39 I
W E Cabrini School Redevelopment cud►, :
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TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 15 December 17, 2019
Tax Increment District #39
Cabrini School Redevelopment
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TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 16 December 17, 2019
SECTION 9:
Detailed List of Project Costs
The following list identifies the Project Costs that the City may incur in implementing the District's Plan.
All projects identified, and related costs reflect the best estimates available as of the date of preparation of
this Plan. All costs are preliminary estimates and may increase or decrease. Certain Project Costs listed
may become unnecessary, and other Project Costs not currently identified may need to be made. (Section
7 details the general categories of eligible Project Costs). Changes in Project Cost totals or the types of
Project Costs to be incurred will not require that this Plan be amended. This Plan is not meant to be a
budget nor an appropriation of funds for specific Project Costs, but a framework within which to manage
Project Costs.
City ofOshkosh, •
Tax Increment District # •
Detailed List of • - Costs
Project Name/Type Timeframe Total
Development Incentives' 2023-2035 $ S00,000
TIF Administrative Expenses 2020-2035 $ 82,S00
Total Projects $ 582,500
Notes:
'Incentive shown reflects requested amount from Developer's TIF Application dated 10-23-2019,and is identified for
purposes of establishing economic feasibility only.The City has not agreed to final terms or conditions with Developer
TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 17 December 17, 2019
SECTION 10:
Economic Feasibility Study, Financing Methods, and the
Time When Costs or Monetary Obligations Related are to
be Incurred
This Section includes a forecast of the valuation increases expected within the District, the associated tax
increment collections, a summary of how Project Costs would be financed, and a projected cash flow
demonstrating that the District is economically feasible.
Key Assumptions
The Project Costs the City plans to make are expected to create $1,830,000 in incremental value by
January 1, 2022. The development Project estimated valuations and timing are included in Table 1.
Assuming the City's current equalized TTD Interim tax rate of$25.11 per thousand of equalized value,
and no economic appreciation or depreciation, the Project would generate $1,194,350 in incremental tax
revenue over the 27-year term of the District as shown in Table 2.
TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 18 December 17, 2019
City ofOshkosh
Tax Increment District # •
Development • •
Construction Year 35 Unit Senior Annual Total Construction Year
Apt. Complex
1 2020 0 2020 1
2 2021 1,830,000 1,830,000 2021 2
3 2022 0 2022 3
4 2023 0 2023 4
5 2024 0 2024 5
6 2025 0 2025 6
7 2026 0 2026 7
8 2027 0 2027 8
9 2028 0 2028 9
10 2029 0 2029 10
11 2030 0 2030 11
12 2031 0 2031 12
13 2032 0 2032 13
14 2033 0 2033 14
15 2034 0 2034 15
16 2035 0 2035 16
17 2036 0 2036 17
18 2037 0 2037 18
19 2038 0 2038 19
20 2039 0 2039 20
21 2040 0 2040 21
22 2041 0 2041 22
23 2042 0 2042 23
24 2043 0 2043 24
25 2044 0 2044 25
26 2045 0 2045 26
27 2046 0 2046 27
Totals 1,830,000 1,830,000
Notes:
lEstimated valuation taken from Developer's TIF Application dated 10-23-2019. Developer anticipates
Project completion and occupancy in summer of 2021.
Table 1 —Development Assumptions
TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 19 December 17, 2019
OshkoshCity of
Tax Increment District# 39
Tax Increment Projection Worksheet
Type of District Rehabilitation Base Value 0
District Creation Date January 14,2020 Appreciation Factor 0.00°/u
Valuation Date Jan 1, 2020 Base Tax Rate $25.11
Max Life(Years) 27 Rate Adjustment Factor
Expenditure Period/Termination 22 1/14/2042
Revenue Periods/Final Year 27 2048
Extension Eligibility/Years Yes 3
Eligible Recipient District Yes
Construction Inflation Total
Year Value Added Valuation Year Increment Increment Revenue Year Tax Rate' Tax Increment
1 2020 0 2021 0 0 2022 $25.11 0
2 2021 1,830,000 2022 0 1,830,000 2023 $25.11 45,943
3 2022 0 2023 0 1,830,000 2024 $25.11 45,943
4 2023 0 2024 0 1,830,000 2025 $25.11 45,943
5 2024 0 2025 0 1,830,000 2026 $25.11 45,943
6 2025 0 2026 0 1,830,000 2027 $25.11 45,943
7 2026 0 2027 0 1,830,000 2028 $25.11 45,943
8 2027 0 2028 0 1,830,000 2029 $25.11 45,943
9 2028 0 2029 0 1,830,000 2030 $25.11 45,943
10 2029 0 2030 0 1,830,000 2031 $25.11 45,943
11 2030 0 2031 0 1,830,000 2032 $25.11 45,943
12 2031 0 2032 0 1,830,000 2033 $25.11 45,943
13 2032 0 2033 0 1,830,000 2034 $25.11 45,943
14 2033 0 2034 0 1,830,000 2035 $25.11 45,943
15 2034 0 2035 0 1,830,000 2036 $25.11 45,943
16 2035 0 2036 0 1,830,000 2037 $25.11 45,943
17 2036 0 2037 0 1,830,000 2038 $25.11 45,943
18 2037 0 2038 0 1,830,000 2039 $25.11 45,943
19 2038 0 2039 0 1,830,000 2040 $25.11 45,943
20 2039 0 2040 0 1,830,000 2041 $25.11 45,943
21 2040 0 2041 0 1,830,000 2042 $25.11 45,943
22 2041 0 2042 0 1,830,000 2043 $25.11 45,943
23 2042 0 2043 0 1,830,000 2044 $25.11 45,943
24 2043 0 2044 0 1,830,000 2045 $25.11 45,943
25 2044 0 2045 0 1,830,000 2046 $25.11 45,943
26 2045 0 2046 0 1,830,000 2047 $25.11 45,943
27 2046 0 2047 0 1,830,000 2048 $25.11 45,943
1,830,000 1,194,530
Notes:
Tax rate shown is actual rate for 2018/19 levy taken from DOR Form PC-202(Tax Increment Collection Worksheet).
Table 2—Tax Increment Projection Worksheet
TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 20 December 17, 2019
Financing and Implementation
The City anticipates making total Project Cost expenditures of $582,500 including a $500,000
development incentive, and an estimated $82,500 in District administrative expense. The potential
incentive amount is based on Developer's assistance request. To the extent development incentives are
provided, the amounts, timing of and related conditions will be determined based on the City's review
and confirmation of a demonstrated financing gap and may therefore vary from the assumptions used in
the Plan for purposes of assessing economic feasibility.
Development incentive payments will be paid from tax increments as they are collected on a"pay as you
go" basis. Administrative expenses will be paid from tax increments collected, or from advances from
other funds to the extent those costs exceed cash amounts available. The City will recover any amounts
advanced to the District as cash flows permit.
Based on the cash flow exhibit (Table 3), the City anticipates that the District will generate enough tax
increment to pay all Project Costs by the year 2035, reflecting 14 years of tax increment collections, and
16 years of total elapsed time. If necessary, the District would be permitted to remain open for up to 29
years, allowing for up to a total of 27 years of tax increment collection. The projected closure is based on
the various assumptions noted in this Plan and will vary dependent on actual Project Costs incurred and
the actual amount of tax increments collected.
TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 21 December 17, 2019
Cash Flow
City of Oshkosh
Tax Increment District#39
Cash Flow Projection
Projected Revenues Projected Expend itu res-MMMMMW Balances
Development
Year Advance to Incentives Repay MRO
i
Tax Cover Admin. Total (MRO) @ Advance @ Admin. Total Payments
Increments Expense Revenues 90% 2%Interest E ense Expenditures Annual Cumulative Outstanding Year
2020 15,000 15,000 15,000 15,000 0 0 2020
2021 4,500 4,500 4,500 4,500 0 0 0 2021
2022 0 4,500 4,500 4,500 4,500 0 0 500,000 2022
2023 45,943 45,943 41,349 4,500 45,849 94 94 458,651 2023
2024 45,943 45,943 41,349 4,500 45,849 94 189 417,302 2024
2025 45,943 45,943 41,349 4,500 45,849 94 283 375,953 2025
2026 45,943 45,943 41,349 4,500 45,849 94 377 334,603 2026
2027 45,943 45,943 41,349 4,500 45,849 94 472 293,254 2027
2028 45,943 45,943 41,349 4,500 45,849 94 566 251,905 2028
2029 45,943 45,943 41,349 4,500 45,849 94 660 210,556 2029
2030 45,943 45,943 41,349 4,500 45,849 94 755 169,207 2030
2031 45,943 45,943 41,349 4,500 45,849 94 849 127,858 2031
2032 45,943 45,943 41,349 4,500 45,849 94 943 86,509 2032
2033 45,943 45,943 41,349 4,500 45,849 94 1,038 45,160 2033
2034 45,943 45,943 41,349 4,500 45,849 94 1,132 3,810 1 2034
2035 45,943 45,943 3,810 31,410 4,500 39,720 6,223 7356 0 2035
2036 45,943 45,943 0 45,943 53,299 0 2036
2037 45,943 45,943 0 45,943 99,243 0 2037
2038 45,943 45,943 0 45,943 145,186 0 2038
2039 45,943 45943 0 45,943 191,130 0 2039
2040 45,943 45,943 0 45,943 237,073 0 2040
2041 45,943 45,943 0 45,943 283,017 0 2041
2042 45,943 45,943 0 45,943 328,960 0 2042
2043 45,943 45,943 0 45,943 374,903 0 2043
2044 45,943 45,943 0 45,943 420,847 0 2044
2045 45,943 45,943 0 45,943 466,790 0 2045
2046 45,943 45,943 0 45,943 512,734 0 2046
2047 45,943 45,943 0 45,943 558,677 0 2047
2048 45,943 45,943 0 0 45,943 604,620 (0) 2048
Total 1,194,530 24,000 1,218,530 5D0,000 31,410 82,500 613,910 Total
Notes:
Incentive shown reflects requested amount from Developer's TIF Application dated 10-23-2019,and is identified for purposes of establishing economic feasibility only.
The City has not agreed to final terms or conditions with Developer.
Projected TID Closure
Table 3
TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 22 December 17, 2019
SECTION 11 :
Annexed Property
A tax incremental district cannot include annexed territory unless at least three years have elapsed since
the annexation, or certain other requirements are met. None of the property within the proposed District
boundary was annexed during the past three years.
SECTION 12:
Estimate of Property to be Devoted to Retail Business
Pursuant to Wis. Stat. § 66.1105(5)(b), the City estimates that none of the territory within the District will
be devoted to retail business at the end of the District's maximum expenditure period.
SECTION 13:
Proposed Zoning Ordinance Changes
The territory to be included in the District is presently zoned I, Institutional District and will be rezoned to
I PD, Institutional District with a Planned Development Overlay to allow for construction of the Project.
SECTION 14:
Proposed Changes in Master Plan, Map, Building Codes
and City of Oshkosh Ordinances
The proposed Plan is in general conformance with the City's Comprehensive Plan identifying the area as
appropriate for a Community Facility. The Institutional District with a Planned Development Overly is
consistent with the Comprehensive Plan. Development within the District will be required to conform to
State Building Codes and will be subject to the City's permitting and inspection procedures. The proposed
Plan conforms to all relevant State and local ordinances, plans, and codes. No changes to the existing
regulations are proposed or needed.
SECTION 15:
Relocation
Implementation of this Plan will not require relocation of individuals or business operations. Should
implementation of this Plan require relocation of individuals or business operations, relocations will be
handled in compliance with Wis. Stat. Chapter 32 and Wis. Admin. Code ADM 92.
TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 23 December 17, 2019
SECTION 16:
Orderly Development of the City of Oshkosh
Creation of the District and the implementation of the projects in its Plan will promote the orderly
development of the City through the provision of appropriate financial incentives that will result in
rehabilitation and conservation of property, and creation of affordable senior housing. Through use of tax
increment financing, the City can attract new investment that results in increased tax base. Development
will occur in an orderly fashion in accordance with approved plans so that the Project will be compatible
with adjacent land uses. Redevelopment of the existing structure within the District will add to the tax
base and will generate positive secondary impacts such as employment and commercial opportunities
related to the construction and operation of the Project.
SECTION 17:
List of Estimated Non-Project Costs
Non-project costs are public works projects which only partly benefit the District. Costs incurred that do
not benefit the District may not be paid with tax increments. Examples of non-project costs are:
• A public improvement made within the District that also benefits property outside the District.
That portion of the total Project Costs allocable to properties outside of the District would be a
non-project cost.
• A public improvement made outside the District that only partially benefits property within the
District. That portion of the total Project Costs allocable to properties outside of the District
would be a non-project cost.
• Projects undertaken within the District as part of the implementation of this Project Plan,the costs
of which are paid fully or in part by impact fees, grants, special assessments, or revenues other
than tax increments.
At present,the City has not identified any non-project costs associated with implementation of the Plan. If
the District is unable to fully fund all Project Costs required to implement the Plan, those costs will
become non-project costs to the extent they are funded from other sources. If, in the course of
implementation of the Plan: 1) improvements are made within the District that benefit property outside
the District; or 2) improvements are made outside the District that will only partially benefit the District;
the City will apportion those costs based on a reasonable allocation of the benefit. The costs related to
benefit received by properties outside the District are non-project costs.
TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 24 December 17, 2019
SECTION 18:
Opinion of Attorney for the City of Oshkosh Advising
Whether the Plan is Complete and Complies with
Wisconsin Statutes 66. 1105
l,]TY it Al.
21GafWwh0Awut
N 73 r—I IX
owixm vauiti;.Si®I 11h4 idly of Oshkosh
D+ecetnber 5,2b14
U7HKO.fH
H.Alen DavLs
Director of 0gmmienity Development
City of Ck5hkah
215 Ch a r+ch.Abvcnue
hkosk W1 54 -1130
Dear Mr.Davis:
I rinriewed the project plan preparers for the City of Oshkosh by Ehlers,Inc_for Tax Increment District
#39 Cabriru S4imal Redevelopment Air form and to dehrnLiie wlurthur it contains ELU required
elements pursuant to Section 66.11,05(4)(f)of the Wisconsin Statute!�-
The plan includes a statement listing the kind,, number, and loution of Proposed public
imp cr c-niunts within and ctiutside the Distnid. It includes an economic feasibility study,a detailed
list of estimated projectcosts,and a-description of the muffin .of finarEcingall esdroated Project costs
and the time whLt the costs are to be incurred. The plan indicates no Acln-prOjL�et or5Gts are
anticipated to be incurred,but does define such its. Th,a plan contairu maps of exiting uses and
conditions of real property,as well a_s.,prop€5ed irnprovff eats and uses. The plan identifies that
there-%-M be a donge in ?oT&q of the real property in the district but that(here are no 1-sn)per, d
changes in the City's rrra<sur plan,map or other municipal codes required or propor+-1 as part of the
disF rt. The plan includes a atamment indicating that there is no anticipated re Ovation of any
pefsom to be displaned, but that if relocatirm wnuld become rewired it will be conkiueftt f in
acmr-dance with IC'.h_.32 Wis. Stam and ADMIN 92. Thc-plan includes a duscription of how the
district will pran;otc,the orderly development within the City,wNch is ccgisistent with the City's
Comprehensive Plan(Mmeer Plan),tRi llding PCs,and odor rity ordinanrw s in reietign to project
elements.
Upon adoptiim of the pro ct plan by the Plan Commission and 12% rsub iun tD the City colmaiL
all requirement:,of Section 66.11 (4)(G WisonsiiriStatutes,will be complete and it iy,tf=eture,my,
opinion that time project plan attached hereto is complete and complies with Wig-Stat.§66.'114D5,
Sincerely,
C C}F{ H CFI
L .L3
City ARomey
TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 25 December 17, 2019
Exhibit A:
Calculation of the Share of Projected Tax Increments
Estimated to be Paid by the Owners of Property in the
Overlying Taxing Jurisdictions
ri
",2018/19DOR Form PC-202 Percentage
Winnebago County 749,693 20.22%
City of Oshkosh 1,482,441 39.98%
Oshkosh Area School District 1,320,217 35.60%
Fox Valley Techncial College 156,024 4.21%
Total 3,708,374
Fox Valley
Winnebago Oshkosh Area Techncial
Revenue Year County City of Oshkosh School District College Total Revenue Year
2022 0 0 0 0 0 2022
2023 9,288 18,366 16,356 1,933 45,943 2023
2024 9,288 18,366 16,356 1,933 45,943 2024
2025 9,288 18,366 16,356 1,933 45,943 2025
2026 9,288 18,366 16,356 1,933 45,943 2026
2027 9,288 18,366 16,356 1,933 45,943 2027
2028 9,288 18,366 16,356 1,933 45,943 2028
2029 9,288 18,366 16,356 1,933 45,943 2029
2030 9,288 18,366 16,356 1,933 45,943 2030
2031 9,288 18,366 16,356 1,933 45,943 2031
2032 9,288 18,366 16,356 1,933 45,943 2032
2033 9,288 18,366 16,356 1,933 45,943 2033
2034 9,288 18,366 16,356 1,933 45,943 2034
2035 9,288 18,366 16,356 1,933 45,943 2035
2036 9,288 18,366 16,356 1,933 45,943 2036
2037 9,288 18,366 16,356 1,933 45,943 2037
2038 9,288 18,366 16,356 1,933 45,943 2038
2039 9,288 18,366 16,356 1,933 45,943 2039
2040 9,288 18,366 16,356 1,933 45,943 2040
2041 9,288 18,366 16,356 1,933 45,943 2041
2042 9,288 18,366 16,356 1,933 45,943 2042
2043 9,288 18,366 16,356 1,933 45,943 2043
2044 9,288 18,366 16,356 1,933 45,943 2044
2045 9,288 18,366 16,356 1,933 45,943 2045
2046 9,288 18,366 16,356 1,933 45,943 2046
2047 9,288 18,366 16,356 1,933 45,943 2047
2048 9,288 18,366 16,356 1,933 45,943 2048
Total 241,489 477,519 425,264 50,258 1,194,530
Notes:
The projection shown above is provided to meet the requirements of Wis. Stat. §66.1105(4)(i)4.
TID No. 39 Project Plan City of Oshkosh
Prepared by Ehlers Page 26 December 17, 2019
October 23, 2019 NORTHPOINTE
DLVELOPMENi COR'PORAHON
Mr Mark Rohloff
City Manager
City of Oshkosh
215 Church Avenue
Oshkosh WI, 54901
Dear Mr. Rohloff,
Thank you very much for the assistance you and your staff have given us in considering the potential
redevelopment of the former St Francis Cabrini School into a 35 unit low-income senior apartment
complex. As we have previously discussed, we are proposing to complete this project with the assistance
of Low Income Housing Tax Credits (LIHTC), Historic Tax Credits, CDBG funds, and Tax Increment
Financing in the form of a pay-go note. Our plan is to submit our application for the project to Wisconsin
Housing and Economic Development Authority (WHEDA) by early January of next year. As part of this
application we must provide documentation of all assistance we will receive for the project as well as
outline the financial viability.
Historically this site, which at the moment is a combined site with St Mary's Catholic Church, has been
used as an elementary school for the catholic school system. However this is now the 3rd school year in
which the site is not being used.
As a low-income project, the future tenants of this project will need to meet income qualification
standards as set by HUD.The largest income allowed will be at 80%of the community median income
(CMI). However we anticipate tenants as low as 40%of the CMI. Moreover, rental rates will be set by
the HUD affordability standards each year. As a senior facility,tenants will also need to be aged 55 or
above.
Our intent is to submit our WHEDA application by early January of next year and would anticipate being
notified of our award of LIHTC credits by April of 2020. Upon the award of credits, we would finalize
construction plans and complete the syndication process and start construction by October with the
hope of completing construction and obtaining occupancy the following summer of 2021.
As you are aware,these tax credit projects pose a unique ownership and financing structure to make
them viable. We, as Northpointe Development, will serve as the developer of this project. Upon award
of the tax credits, we will seek out a tax credit investor whom we will sell majority ownership interest
(99.99%) in the project for 15 to 17 years. During this period, as the owner, the equity investor will earn
and use the tax credits over time as well as take the profit or loss from the operation of the project.
While we are applying for the TIF,the proceeds will be directed towards this equity investor during their
ownership period. Our analysis of profitability then was conducted in regards to the equity investor.
From our experience, it is common that projects like this, especially in this case where we are proposing
a 4%deal, that TIF financing is absolutely needed to make the project work. It is common for these
equity investors to require a 4 to 5.5% return before they would consider a project. Invista Analytics, our
investment analyst, has reported to us that if we request$500,000 of TIF assistance, that the equity
Page 27
investor is projected to realize a 4.04% 15 year internal rate of return. Without TIF the rate falls to
1.41%.
The overall budget for this project is approximately$7.35 million.The tax credits alone we anticipate
being able to raise $5.16 million in funding. We anticipate using primary financing through WHEDA in
the amount of$1.99 million on a 35 year term at a 5.25% interest rate. And city staff has suggested the
possibility of utilizing$200 K in CDBG funds for this project to complete our capital stack.
As a historic preservation project, the community will benefit for the preservation of this historic
building in a timely fashion so as to prevent what might inevitably become blight.Moreover the
community will also benefit from the production of badly needed quality affordable housing with the
guarantee of continuing to provide low-income units.
As a property owned by the Catholic diocese the property has a present assessed value of zero dollars.
We anticipate a completed project value of$1.83 million.
Again, providing low-income housing is becoming harder and harder as construction costs continue to
rise. At the most recent WHEDA conference, speakers repeatedly talked about how these projects
cannot come to fruition without substantial local support which most often comes in the form of Tax
Increment Financing. Moreover we know that equity investors is these settings typically require a
minimum of a 4% return as well as getting Community Reinvestment Act(CRA) credit in investing in low-
income housing. With our requested TIF assistance that project just meets this threshold. Without TIF
assistance the anticipated return is too low such that WHEDA is not likely to award the credits and thus
the project will not more forward. Simply put, this project cannot proceed without TIF assistance.
Again we thank you and your staff for all the assistance provided on this project as well as previous
projects throughout the years. We are excited to move forward with this project and appreciate the
support and enthusiasm the city has provided and hope that together we can bring more affordable
housing to Oshkosh.
Sincerely,
Cal Schultz &Andy Dumke
Northpointe Development
Page 28
• Tax Incremental Financing
PolicyApplicationand
Please complete and submit the following information to the City of Oshkosh for a more detailed review of
the feasibility of your request for Tax Incremental Financing (TIF) assistance.The application is comprised of
five parts:
1. Applicant Information
2. Project/Property Information
3. Project Narrative
4. Project Budget/Financial Information
5. Buyer Certification and Acknowledgement.
Where there is not enough space for your response or additional information is requested, please use an
attachment. Use attachments only when necessary and to provide clarifying or additional information.
The Department of Community Development (DCD) reviews all applications for TIF assistance. Failure to
provide all required information in a complete and accurate manner could delay processing of your
application and DCD reserves the right to reject or halt processing the application for incomplete
submittals.
For further information please refer to the"City of Oshkosh Tax Incremental Financing Policy"document or
call the Economic DeveloiDment Division at 920.235.5055
Applicant Information:
Legal Name: Northpointe Development Corporation
Mailing Address: 420 S Koeller St, Suite 230, Oshkosh WI
Primary Contact #: 920.303.9404 Cell #:
E-mail: andy@alinacedevelopment.biz FAX#:
Attorney:
Legal Entity: Individual(s) Joint Tenants Tenants in Common
X Corporation LLC Partnership Other
If not a Wisconsin corporation/partnership/LLC, state where organized: An equity investor will be sought
will maintain 99.99%ownership
Will a new entity be created for ownership? Yes X NO through first 15-17 years.
Principals of existing or proposed corporation/partnership/LLC and extent of ownership interest.
Name: Address: Title: Interest:
Andy Dumke 230 Ohio St Suite 200 Partner 50%of Development Co
Cal Schultz 230 Ohio St Suite 200 Partner 50%of Development Co
Unknown Investor will own 99.99%of the project for first 15-17 years of the project.
Is any owner, member, stockholder, partner, officer or director of any previously identified entities,
or any member of the immediate family of any such person, an employee of the City of
Oshkosh? Yes No x
If yes, give the name and relationship of the employee:
Have any of the applicants (including the principals of the corporation/partnership/LLC) ever
been charged or convicted of a misdemeanor or felony? Yes No x
If yes, please furnish details:
Page 29
• Tax Incremental Financing
PolicyApplicationand
Overall Project Summary and Objectives:
We seek to turn the vacant St Francis Cabrini School into approximately 35 low-income senior apartment units.The site will provide
surface parking along with 26 single-car garage units.
Current and Proposed Uses:
The mast r,-r-Pnt i—was as an elementary sr hoal far the catholic school system.The nerty has hePn vacant far the past 2,5
years.The proposed use is a 35 unit low-income senior apartment facility.
Description of End Users:
Fnci users will he 55 years and older and need to meet law-income crualification standards of at mast RO%of the community
median income.
Property Summary: Describe any zoning changes that will be needed:
Application has been submitted to split the parcel through plan
Parcel/Land Area: SF commission.
Building Area: SF
# of Dwelling Units:
# of Stories:
# of Parking Spaces:
Identify any other approvals, permits or licenses (i.e. Liquor License, Health Department, etc):
Describe briefly what the project will do for the property and neighborhood:
This property has been sitting vacant for the past 2.5 years.This project will stabilize the property and unsure the building does not
come under further disrepair.Moreover,the renovation will be conducted according to the secretary of the interior's standards
for historic preservation.
Page 30
• Tax Incremental Financing
• PolicyApplicationand
Project Timetable Date
Final Plan/Specification Preparation: Final Preliminary plans Jan 2020
Bidding and Contracting Oct 2020
Firm Financing Approval: LIHTC awarded April 2020,syndication of credits in Oct 2020
Construction/Rehabilitation: Oct 2020-June 2021
Landscaping/Site Work: Oct 2020-June 2021
Occupancy/Lease Up: July 2021
Development Team
Developer: Northpointe Development
Architect: RH Design Build
Surveyor:
Contractor: RH Design Build
Other Members: Wesenberg Architects(Historic Consulting)
Describe Team expertise and experience in developing similar projects:
Over the past decade Northpoint development has been responsible for the development of over 1,000 apartment
units across the state including historic renovation,low-income,and other market rate apartments.
Other current Team projects in development:
Northpoint is presently working on 2 LIHTC proiects including the Post-Crescent building in Appleton and the City
Center Apartments in Brillion,WI.
Financial ability of the applicant to complete the project:
With historic tax credits and low-income tax credits,the developers are confident that the project will have sufficient
financing with the City's TIF participation to complete the project.
History of use of other city or government financial incentives:
The developers have had substantial experience using government incentives to complete development projects.
Professional Studies
Market Studies: Applications for commercial and residential projects may at the option
of the city be required to include a comprehensive market study. The market study
should identify target markets, analysis of competition, demographics, market rents,
letters of intent/interest from prospective tenants, or for housing developments, sale
prices or rental rates of comparable properties.
Appraisal: All projects that involve the transfer of land may at the option of the city
include a recent appraisal. Projects that include land as a form of equity or collateral
must also submit a recent appraisal. The appraisal must value the property "as is", and
the impact on value must be considered for such items as demolition, environmental
remediation, relocation of utilities, lease buy-outs, and other work necessary to make
the site developable. The property must be valued assuming that the highest and
best use is the proposed use.
Page 31
• Tax Incremental Financing
Policy and Application
• - • • - led elm
Sources and Uses of Funds
Identify the sources of funds used to finance the project. Typical sources include equity,
lender financing, mezzanine financing, government financing, other anticipated types
of public assistance, and any other types or methods of financing.
Uses of Funds Amount ($) $ per SF of Building Area
Land Acquisition:
Demolition:
Environmental Remediation:
Site Clearance and Preparation: see Attached Detailed
Project Budget
Soft Costs/ Fees:
Soft Cost Contingency:
Hard Construction Costs:
Total Project Costs:
Sources of Funds % of total project costs
Equity
LIHTC Equity: $ 1,994,769 27.1 %
HTC Equity: $ 3,171,051 431 %
Total Equity: $ %
Loans Rate Term
Construction Financing: $ % mos.
Permanent Financing: $ 1,991,000 5.25 % 35 yrs. 27.1 %
TIF Assistance $ 500,000 6.8
Other: ( CDBG ) $ 200,000 2.7 %
Total Sources of Funds $ 7,356,820 100%
Financing
Source Amount Terms: Years/Interest Contact Information
Equity: Total Tax Credit Equity=$5,165,820
Loans 1: 1,991,000 35 years @ 5.25% through WHEDA
2:
3:
4:
Page 32
• Tax Incremental Financing
PolicyApplicationand
Summary Letter
Provide a summary of the project in the form of a letter addressed to the City Manager.
The letter should not exceed two (2) pages in length and should include only the following
essential information about the project:
• Description of site or building • Amount of TIF assistance
• Current and proposed uses requested
• Description of end users . Summary of increment
• Project start and end dates projections
• Profitability • Name of developer and owner
• Description of public benefits, • Total development costs
including job creation. • Statement regarding why TIF is
• Overview of private-sector essential and why the"but for'
financing provision will be met.
Note: In the "but for"discussion you must clearly describe why TIF is needed to help this
project and why the project will not/cannot proceed without such support. Failure
to clearly provide the "but for" explanation will delay action on your application.
Project Narrative
Provide an in-depth overview of the project in narrative format. The narrative must include
a description of the following aspects of the project:
• Current condition of the site and historical overview that includes the size and
condition of any existing structures, environmental conditions, and past uses of
the site.
• Proposed use(s) of project (e.g. industrial, commercial, retail, office, residential
for sale or for rental, senior housing, etc.)
• Construction information about the project including: size of any existing
structure to be demolished or rehabbed; size of any new construction: types of
construction materials (structural and finish); delineation of square foot
allocation by use; total number and individual square footage of residential
units: type of residential units (e.g. for-sale, rental, condominium, single-family,
etc.); number of affordable residential units; number and type of parking
spaces; and construction phasing.
• If in an existing TID or redevelopment area, confirm that this project is consistent
with the goals and objectives in the Project or Redevelopment Plan.
• A summary of the proposed "green" features to be included in the project. All
projects that receive TIF assistance are encouraged to include environmentally
friendly features.
Page 33
City of Tax Incremental Financing
Oshkosh PolicyApplicationand
Filing Requirements
You must provide all of the following items with your signed application:
1 . Fee: An application fee of 1%of the requested TIF assistance or$10,000,whichever is
greater.This fee is to cover City costs associated with evaluating the TIF application
and does not cover the use of outside consultants, which if required will be paid for
by the applicant. Make your check payable to the City of Oshkosh.
2. Site Maps: Provide a map that shows the location of the site. Also provide a map
that focuses on the project and its immediate surroundings. Both maps should be no
larger than 1 1 xl 7 inches. Larger maps will be required for projects presented to the
Plan Commission, Redevelopment Authority, or Common Council.
3. Project Renderings: Provide preliminary architectural drawings, plans and renderings
for the project. These drawings should be no larger than 1 1 x17 inches. Larger maps
will be required for projects presented to the Plan Commission, Redevelopment
Authority, or Common Council.
Notes
• The City retains an administrative fee of 5%of the annual tax increment revenue.
• If the project requires planning and zoning approvals,you must make these applications
concurrent with this request.
Agreement
I,by signing this application, agree to the following:
1. I have read and will abide by all the requirements of the City for Tax Incremental
Financing.
2. The information submitted is correct.
3. 1 agree to pay all costs involved in developing Project Plan or Development
Agreement. These costs may include, but not be limited to, bond counsel,outside
legal assistance,outside financial assistance, planning, engineering, etc. and all
costs involved in the issuance of the bonds or loans to finance the project.
4. 1 understand that the City reserves the right to deny final approval, regardless of
preliminary approval or the degree of construction completed before application
for final approval.
5. The undersigned authorizes the City of Oshkosh to check credit references and verify
financial and other information.
6. The undersigned also agrees to provide any additional information as may be
requested by the City after filing of this application.
Applicant Name Date 101;01�
Page 34
Detailed,Project Budget
Amount Notes
Acquisition&Site Pre
Land Acquisition 1
Demolition
Utilities/relocation
Subtotal $1
Soft Costs Fees
Architect/Engineer 135,000 RH Design Build
Developer Fee 527,860
Interim Construction Costs 115,838
Financing Fees 65,000 BMO&WBD Fees
Syndication Costs 2,000
Operating Reserves 177,500
Soft Cost Contingency 75,500
Subtotal $1,098,698
Hard Costs
Construction/Rehab 5,960,115 RH Design Build
Construction Contingency 298,006
Subtotal $6,258,121
Total Project Costs $7 356 820
Source of Funding
Permanent Financing 1,991,000 WHEDA @ 5.25%/35 year
LIHTC Equity 1,994,769
CDBG Monies 200,000
HTC Equity 3,171,051
Total Source of Funds 7,356,820
Page 35
.:Cabr80 School-Profit and to.With TIF
Yearl Year2 Year3 Year4 Years Year6 Year7 Year8 Year9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Inc
Residential Rent(0.52%+) $285,024 $286,506 $287,996 $289,494 $290,999 $292,512 $294,033 $295,562 $297,099 $298,644 $300197 $301,759 $303,327 $304,904 $306,490
Garage Rent $12,460 $12,605 $12,731 $12,858 $12,987 $13,117 $13,248 $13,380 $13,514 $13,649 $13,766 $13,924 $14,063 $14,203 $14,345
Gross Patentlal income $297.504 $299,111 $300,727 $302,352 $303,986 $305,629 $307,281 $308,942 $310,613 $312,293 $313.983 $315,681 $317,390 $319,108 $320,835
Vacan $20,825 $20,938 $21,051 $21,165 $21,279 $21,394 $21,510 $21,626 $21,743 $21,861 $21,979 $22,098 $22,217 $22,338 $22,458
EffectNe Gross Income(EGI) $276,679 $278,173 $279,676 $281,187 $282,707 $284,235 $285,771 $287,316 $288,870 $290,433 $292,004 $293,584 $295,173 $296,770 $298,377
Expenses
Maintenance&Repairs $39,000 $39,390 $39,784 $40,182 $40,594 $40,999 $41,399 $41,813 $42,231 $42,654 $43,080 $43,511 $43,946 $44,396 $44,829
Real Estate Taxes $0 $0 $46,250 $46,713 $47,180 $47,651 $48,128 $48,609 $49,095 $49,586 W,082 $50,583 $51,089 $51,600 $52,116
Insurance $12,700 $12,827 $12,955 $13,085 $13,216 $13,348 $13,481 $13,616 $13,752 $13,890 $14,029 $14,169 $14,311 $14,454 $14,59
Management Fee $52,604 $53,130 $53,661 $54,198 $54,740 $55,287 $55,840 $56,399 $56,963 $57,532 $58,108 $58,689 $59,276 $59,868 $60,467
State Compliance $1,575 $1,591 $1,607 $1,623 $1,639 $1,655 $1,672 $1,699 $1.705 $1,723 $1,740 $1,757 $1,775 51,792 $1,810
Utilities&Trash $22,500 $22,725 $22,952 $23,182 $23,414 $23,648 $23,884 $24,123 $24,364 $24,608 $24,854 $25,103 $25,354 $25,607 $25,863
Total O e,mfog Ea enses $128,379 $129,663 $177,209 $178,982 $180,771 $182,579 $184,405 $186,249 $188,111 $189,992 $191,892 $193,811 $195,749 $197,707 $199,684
Net Operating Income(NOI) $148,300 $148,510 $102,467 $102,206 $101,935 $101,656 $101,366 $101,068 $100,759 $100,440 $100,111 $99,772 $99.423 $99,063 $98,693
Capital Reserves $8,750 $8,838 $8,926 $9,015 $9,105 $9,196 $9,288 $9,381 $9,475 $9,570 $9,665 $9,762 $9,860 $9,958 $10,058
Debt Service(35yr@ 5.25%) $124,416 $124,416 $124,416 $124,416 $124,416 $124,416 $124,416 $124,416 $124,416 $124,416 $124,416 $174,416 $124,416 $124,416 $124,416
nF Recapture -$41,625 -$42,041 -$42,462 -$42,886 -$43,315 -$43,748 -$44,186 -$44,628 -$45,074 -$45,525 -$45,980 -$46,440 -$46,904
Net Cash Fl-(GAPP) $15,134 $15,257 $10,750 $10,816 $10,876 $10,930 $10,977 $11,019 $11.054 $11,082 $11,104 $11,119 $11,127 $11,129 $11,123
Page 36
Maximum Rental Income Potential
Income Income No Units Rent/Mo Subtotal
40%CM 1 Bed/1 Bath 8 535 4,280
50% CM 1 Bed/1 Bath 6 682 4,092
60% CM 1 Bed/1 Bath 6 725 4,350
80%CM 1 Bed/1 Bath 4 695 2,780
80%CMI 2 Bed/1 Bath 11 750 8,250
Subtotal 35 23,752
Monthly Total $23,752.00
Annual Total $285,024.00
Page 37
Return on Investment Metrics
With TIF Without TIF
Net Cash Flow HTC LIHTC Total Net Cash Flow HTC LIHTC Total
Initial Cash Outlay -5,165,820 -5,165,820 -5,165,820 -5,165,820
Year 1 15,134 712,596 280,164 1,007,894 15,134 712,596 280,164 1,007,894
Year 2 15,257 712,596 280,164 1,008,017 15,257 712,596 280,164 1,008,017
Year 3 10,750 712,596 280,164 1,003,510 -30,875 712,596 280,164 961,885
Year 10,816 712,596 280,164 1,003,576 -31,226 712,596 280,164 961,534
Year 5 10,876 712,596 280,164 1,003,636 -31,586 712,596 280,164 961,174
Year 6 10,930 280,164 291,094 -31,957 280,164 248,208
Year 7 10,977 140,082 151,059 -32,338 140,082 107,744
Year 8 11,019 140,082 151,101 -32,730 140,082 107,353
Year 9 11,054 140,082 151,136 -33,132 140,082 106,950
Year 10 11,082 140,082 151,164 -33,546 140,082 106,537
Year 11 11,104 11,104 -33,970 -33,970
Year 12 11,119 11,119 -34,406 -34,406
Year 13 11,127 11,127 -34,853 -34,853
Year 14 11,129 11,129 -35,311 -35,311
Year 15 11,123 11,123 -35,781 -35,781
15yr IRR=> 4.04% 15yr IRR=> 1.41%
Page 38