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ESBGUNFNPSBOEVN <br />Up; <br />CityofCenterville <br />Gspn; <br />TammyOmdal <br />Ebuf; <br />July11,2019 <br />TaxIncrementFinancing(TIF)AssistanceforHousingProject <br />Sf; <br />TheCityhasreceivedarequestforfinancialassistancefromTridentDevelopment,LLC(the <br />“Developer”)fortheproposedconstructionofmultifamilydevelopmentconsistingofapproximately <br />53housingunitswithinathree-storybuilding,witharetailcomponent,withsurfaceparkingspaces <br />plusdetachedgaragebays(the“Project”).TheProjectisproposedtobemarketratewithan <br />affordablecomponent.TheproposedsiteisonvacantlandownedbytheCitylocatedatCenterville <br />RoadbetweenSorelStreetandHeritageStreet. <br />BasedonainformationprovidedbytheDeveloperandfinancialanalysiscompletedbyNorthland <br />PublicFinance,wehavedeterminedthattheProjecthasademonstratedfinancialgap.TheCityhas <br />theoptiontoconsidertheestablishmentofahousingtaxincrementfinancing(TIF)districttoprovide <br />financialassistancetotheProject.TheProjectwillnotmeettherequirementsforestablishmentof <br />anyothertypeoftaxincrementdistrictallowedbyStatelaw.TheCityhastheauthoritytoestablish <br />ahousingTIFdistrictforaprojectintendedforoccupancy,inpart,bypersonsorfamiliesoflowand <br />moderateincome.TheDeveloperisproposingthat20%oftheunits,or11units,forthelifeoftheTIF <br />districtwillbeoccupiedbyincomequalifiedtenantsthathaveincomesatorbelow50%ofthearea- <br />widemedianincome.Asanexample,thisincomelevelis$50,000forthecurrentyear. <br />Toassistwiththefinancialgap,theDeveloperisrequesting$1,300,000inreimbursementofland <br />acquisitionandextraordinarysiteimprovementcostsfromtaxincrementfinancing(TIF)onapay-go <br />basis.With“pay-go”assistance,theDeveloperandtheCitywoulddeterminethecoststhatqualify <br />forpublicreimbursementandthenenterintoadevelopmentagreement.TheDeveloperthenwould <br />spenditsownmoneyorborrowsmoneyfromabanktofinancetheupfrontcostsoftheland <br />acquisitionandsiteimprovements.TheDeveloperwouldprovideevidenceofthesecoststotheCity <br />andthentheCitywouldissueaTIFrevenuenotetoreimbursethesecosts.Thistypeof“pay-go” <br />assistancedoesnotrepresentageneralobligationoftheCity.ATIFrevenuenoteisanobligationto <br />assignfutureanduncertainrevenuesources(taxincrements)and,assuch,isnotactualdebtin <br />substance. <br />150SouthFifthStreet,Suite3300,Minneapolis,MN55402 <br />Main:(612)851-5900/Direct:(612)851-4964/Email:tomdal@northlandsecurities.com <br />MemberFINRAandSIPC|RegisteredwithSECandMSRB <br /> <br />