7.1. SR 04-21-2014 - Laserfiche WebLink

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City of Elk - Request for Action River O. To Item Number Mayor& City Council 7.1 Agenda Section Meeting Date Prepared by Public Hearings April 21, 2014 Brian Beeman,Director of Economic Development Item Description Reviewed by Blackhawk Woods Housing Tax Increment Jeremy Barnhart,Deputy Director, CODD Financing District (TIF) Reviewed by Cal Portner, City Administrator Action Requested Approve,by motion, a resolution modifying the Development Program for Development District No. 1, establishing Tax Increment Financing District No. 24, and approving a Tax Increment Financing Plan. Background/Discussion The Blackhawk Woods project is a proposed 56-unit affordable senior housing project located west of Waco Street. The developer applied for TIF assistance through the establishment of a Housing TIF District to finance a portion of the costs associated with constructing the affordable housing project. Springsted has completed the "but for" analysis and determined that without the requested TIF assistance, as the developer indicated,the project would not proceed as proposed due to the income restrictions of the occupants and insufficient cash flow to finance monthly expenses and debt service. The developer's proposed financial package includes long-term permanent financing of$4.5 million in tax exempt Housing Revenue Bonds and$1.5 million in equity from a tax credit syndicator for a total estimated project budget of$6 million. Since March 3,2014, based in part on previous meeting comments from the HRA and City Council, the developer has reduced the project size from 84 to 56 units, changed the anticipated financing from HUD to tax exempt Revenue Housing Bonds and reduced the request for financial assistance from the proposed Housing TIF District from 25 to 15 years. When the HRA discussed the project,their concerns were the length of the TIF term,job creation and wage levels, and the number of units. However,it was decided that the project still had merit based on the service it would provide through affordable senior housing in the community and added property tax value. The HRA recommended the Council consider the project and call for a public hearing to be held on Monday,April 21, 2014. Financial Impact The developer has indicated that because the project is directed toward seniors, there is no expected impact on schools or parks. The impacts of the TIF can be found in Section V (page 10) and Exhibit IV (page 17) of the TIF Plan. P a w E R E U 6 Y NaA f RE]