Fiscal Note
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Title
Report of the Ad Hoc Team for the Waiver Infeasibility re: Recommendations re: Policy Parameters Analytical Tool for the IZ Waiver Process.
Body
TO: Members of the Plan Commission
FROM: Hickory Hurie, on behalf of the ad hoc Team for the Waiver Infeasibility (Konkel, Brasser, Gromacki, Hoffman, Marx)
SUBJECT: Recommendations re: Policy Parameters Analytical Tool for the IZ Waiver Process
DATE: September 20, 2004 draft for Konkel, Gromacki, Marx, and Murphy review
Background:
The Policies document, adopted by the Plan Commission and the Common Council to help implement the IZ ordinance, outlined the need to develop an analytical tool to help staff and the Plan Commission to determine a waiver of the on-site IZ unit requirements.
Purpose:
If the developer can demonstrate that the addition of the IZ units makes the IZ units financially infeasibility within the development, then the developer may provide the units off-site, arrange for a third party to provide the IZ units, or make a payment in lieu of units to the IZ special Reserve Fund. Or the Plan Commission could reduce the number of required units to a point where a smaller IZ portion of the project becomes financially feasible.
Underlying Principles:
A small team of City staff led by a Plan Commissioner reviewed the proposals of two different auditor firms experienced in housing finance, and hired Tim Sherry of Suby Van Haden to develop a model to help analyze requests for waivers. The Team determined that the City needed two models to help analyze proposals: one for rental properties/developments and a second for owner/for sale properties and developments.
The Team envisioned a model whereby a developer could provide certain data regarding a proposed project into a pro-forma spreadsheet, which could then provide a conclusion that a proposed development would be financially feasible (or not). A developer would input data on the proje...
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