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<br />N:\Departments\Community Development\Economic Development\EDA\Administrative\Agenda\Joint Finance Committee Agenda <br />Packets\2020\4.1 sr Community Housing Development Corporation TIF Application.docx <br />The developer’s proposed financial package for the Hillside Heights Apartments Housing TIF Project includes <br />the following sources and uses of funds: <br /> <br />SOURCES AMOUNT NOTES <br />Minnesota Housing First Mortgage $3,290,000 40 years at 3.3% interest rate <br />TIF Mortgage $780,000 25 years at 3.3% interest rate <br />Sales Tax Rebate $349,509 <br />Energy Rebate $27,500 <br />Deferred Developer Fee $502,564 50% total fee. Max allowable <br />Tax Credit Proceeds $11,958,804 <br />TOTAL $16,908,377 <br /> <br />USES AMOUNT NOTES <br />Land Acquisition $450,000 <br />Construction $12,760,000 <br />Contingency $510,400 <br />Professional Fees (Soft Costs) $1,216,775 <br />Developer Fee $1,000,000 <br />Syndication Fees $39,600 <br />Financing Fees $635,070 <br />Reserves $295,533 <br />TOTAL $16,908,377 <br /> <br />The developer is proposing a pay-as-you-go method for eligible costs as reimbursement. To qualify as a Housing <br />TIF District, at least 20% of the units would be occupied by persons or families with incomes no greater than <br />50% of county median income or at least 40% of the units would be occupied by persons or families with <br />incomes no greater than 60% of county median income for the duration of the district. <br /> <br />Policy Review <br />Staff completed a review of the application in accordance of the city’s Tax Increment Financing Policy adopted <br />on December 4, 2017. <br /> <br />Based on the Estimated Market Value of the project as calculated by Sherburne County, the project’s EMV is <br />approximately $7,766,300 or $141,205 per unit. Taxes generated by this project would be approximately <br />$151,640 or $2,757.09 per unit. <br /> <br />Public Purpose <br />The project must achieve one or more of the following public purpose statements: <br />1. Demonstrate long-term benefits to the community. <br />2. Retain local jobs and/or increase the number and diversity of jobs that offer stable employment <br />and/or attractive wages and benefits through: <br /> Diversification of the local economy <br /> Significant addition of permanent, high-wage, full-time jobs <br /> Addition of jobs attractive to those unemployed or underemployed <br />3. Significantly increases the city’s commercial and industrial tax base. <br />4. Demonstrates the ability to encourage unsubsidized private development through “spin off” <br />development.