Fiscal Note
This is the second application for TIF assistance by this Developer. The first TIF application was reviewed by the Finance Committee on January 23, 2017 to consider an exception to the 55% Gateway policy. Finance recommended that no more than 55% of TIF, or $343,000, be provided to the project. Authorization for this amount of TIF assistance required an amendment to the 2017 Capital Budget. Subsequently, the proposed measure failed to receive the extra-majority Common Council votes required to authorize an amendment to the 2017 Capital Budget.
Developer subsequently re-applied for TIF assistance for 2018 Capital Budget funding. As a year had lapsed since the previous calculation, 55% of TIF is now calculated at $322,000. On November 14, 2017 the Common Council adopted the 2018 Capital Budget that authorized sufficient funds for this TIF Loan.
This resolution would authorize a $322,000 loan to 134 Fair Oaks, LLC or its assigns ("Developer") for the redevelopment at 134 S. Fair Oaks Avenue in the existing TID #37 (Union Corners) boundary.
The Project consists of approximately 80 apartment units (68 affordable and 12 market rate) and 2,200 square feet of commercial space and approximately 80 parking stalls ("Project"). This loan would be repaid through incremental taxes generated by the Project and represents approximately 55% of the present value of all incremental taxes anticipated from the Project over the 15 years of life remaining in TID #37.
Within 30 days of closing, Developer shall provide to City, a certified pro forma with final sources and uses (“Certified Pro Forma”). TIF funding will be contingent upon verification that the project has a gap in the amount of the TIF Loan based on the total sources and uses. Should the gap be less than the TIF Loan, then the TIF Loan shall be reduced to the amount of the gap shown in the Certified Pro Forma.
While it is anticipated that the incremental taxes generated by the Project will be sufficient ...
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