WS-D - Grove Park TIF summary

REQUEST FOR TAX INCREMENT FINANCING – ‘PAY AS YOU GO’/TAX REBATE METHOD MASTER DEVELOPER FOR SENIOR HOUSING AND RESIDENTIAL HOUSING TIFFIN, IOWA 443 MARENGO, LLC APRIL 21, 2023 PROPOSED DEVELOPMENT • Two 36-unit Condominiums for Rent Project – Apartment-style o Estimated Post-Renovation Fair Market Value of $13,300,000 • 60-unit 55+ Active Adult Independent Living Building o Estimated Post-Renovation Fair Market Value of $15,000,000 • Likely Phased Development o Years 1-2 – Condominiums o Year 3 – 55+ Active Adult Independent Living Building TAXES GENERATED – TIF Revenue Assumptions Attached • Post-Renovation Fair Market Value total rounded to $28,350,000 • Post-Renovation Tax Assessed Value estimated to be $13,169,098 • TIF Captured at 80% of Tax Assessed Value estimated to be $10,535,278 • Tax Assessments less protected levies estimated to be $27/$1000 of Assessed Value • Incremental Tax Revenue Generated estimated to be >$280,000+ per year upon complete buildout TAX INCREMENT FINANCING REQUESTED • 80% Tax Rebate of the Incremental Tax Revenue for 15 years • Paid Annually as a rebate of actual property taxes accrued • Master Developer Agreement allowing developer to receive rebates o Developer plans to monetize the Tax Rebate by obtaining a Bank TIF Bridge Loan o Assurances as Needed to obtain Financing o Plan to obtain a Line of Credit to be drawn as Project plans are phased o NPV projected to be $3,439,000 o Total Cash with TIF Bridge Loan at 85% Advance projected to be $2,900,000 MASTER DEVELOPER PLANNED USES • Apply $1,400,000 to Condominiums for Rent Project to help make it Financially Feasible, pending State Incentives through Workforce Housing Tax Credit and Brownfield/Grayfield Programs • Apply remaining $1,500,000 to 55+ Active Adult Independent Living Project to help make it Financially Feasible