4.1. JFC SR 01-30-2018 - Laserfiche WebLink

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1,.s Elk .., Request for Action VEY To Item Number joint Finance Committee 4.1 Agenda Section Meeting Date Prepared by General Business January 30, 2018 Amanda Othoudt, EDD Item Description Reviewed by Jackson Hill Residential Suites,LLC and Elk River Lodge and Residential Suites, LLC Housing TIF Reviewed by Application and Financial Review Action Requested Review application and provide a recommendation to the Housing and Redevelopment Authority to establish Tax Increment Financing District No. 25. Background/Discussion The Jackson Hills Residential Suites project is a proposed 40-unit market-rate and affordable housing project located at the intersection of 6th Street and Jackson. The developer applied for Tax Increment Financing assistance through the establishment of a Housing TIF District to finance the portion associated with affordable housing. In addition, the developer also submitted a request to pool increment generated by the Jackson Hills Residential Suites project to reimburse the developer for interior and exterior renovations to convert the existing Elk River Lodge site into affordable housing. The Jackson Hills Residential Suites Housing Project is estimated to generate $1,340,872 in total gross tax increment over 26 years, the maximum term for a Housing District. The net amount available for housing projects is $1,206,790 or 90 percent,with the city retaining 10 percent for administrative expenses over the term of the district. The developer requested$1,206,790, or 90 percent of increment over 25 years with an estimated present value of$677,707. Per the city policy, the total estimated gross increment available for housing projects is $773,580 over 15 years, or the maximum term allowed under the policy. The developer could receive 90 percent of the gross increment over 15 years of$696,225 at a present value of$480,523. The developer's proposed financial package for the Jackson Hills Residential Suites project includes long- term,private financing of$4,719,804 from Lakewood Mortgage, $1,179,804 in equity from the owner, for a total estimated project budget of$5,899,018. The developer's proposed financial package for the Elk River Lodge project includes long-term private financing of$1,250,000 from Klein Bank, $250,000 in equity from the owner,for a total estimated project budget of$1,500,000. The Elk River Vision A nvlcoming community Pith revolutionary and spirited resourcefulness, exceptional P"mi E �, service, and community engagement that encourages and inspires prosperity /�, U 'E