10.1. SR 02-05-2018 - Laserfiche WebLink

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2. Developers receiving TIF assistance shall provide a minimum of ten percent cash equity investment in the project. TIF is not to be used to supplement cash equity. ■ The developer indicated Owner Cash Equity in the Jackson Hills Housing project of $1,179,804, equivalent to 20 percent equity in the project. ■ The developer indicated Owner Cash Equity in the Elk River Lodge Housing project of $250,000, equivalent to 20 percent equity in the project. ■ The developer has indicated that a portion of the equity listed in in the performa is in the value of the land they currently own. 3. TIF will not be used in circumstances where land and property price is of fair market value. ■ The developer will be required to provide the city with recent appraisals, as required for financing, performed by a third -party, hired by Lakewood Mortgage and Klein Bank to determine the fair market value of the land. 4. The developer shall demonstrate a market demand for the proposed project. ■ The most recent housing study completed on December 4, 2015 indicates a need for 133 units of affordable rental. Financial Impact Per the city policy, the total estimated gross increment available over 15 years for housing projects is $773,580. The developer could receive 90 percent of the gross increment over 15 years of $696,225, or a present value of $480,523. It is at the city's discretion to capture the remaining 11 years of estimated surplus increment from this project to assist in future housing projects. Attachments ■ Jackson Hills Residential Suites, LLC TIF Application and Supporting Materials ■ Elk River Residential Suites, LLC TIF Application and Supporting Materials ■ Springsted's analysis and supporting documents dated January 25, 2018 N:\Departments\Community Development\Economic Development\EDA\Administrative\Agenda\EDA Finance Committee Agenda Packets\2018\January 30 2018\4.1 sr Jackson Hills and ER Lodge TIF Application Review.docx