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City of Centerville Council Meeting Minutes March 11, 2020 economy crashed in 2008. Block 7 was platted in 1857 and was bounded by Heritage Street, Goiffon Road, Sorel Street and Centerville Road. This property was the former home of the County Public Works Garage, then City Public Works Garage and skating rink and at one time contained 4 single family homes. In 2001, the City vacated its facility. In 2005, the City used CDBG funds to purchase one home and demolish. In 2007, the City used CDBG funds to purchase and demolish nd the 2 home. This property has been vacant since 2007 with no serious development proposals. Administrator Statz stated that in 2019 the City was approached by two developers, Trident Development and Apollo Development and Trident Development was chosen after each developer presented their proposal to a joint committee of the City Council and Planning Commission. They proposed a three story, 53-unit apartment building and 80% at Market Rate for rent and 20% to be affordable rent (50% of AMI) with a small retail space available on the ground floor. This project also proposed to have underground parking but this was not feasible due to the water table. Administrator Statz stated that the total cost of this project would be $10 million and with a financial gap of $1.35 million where they requested TIF (tax increment financing) to fill the gap for 16 years. How tax increment financing works, the developer (owner) pays their property taxes (city, county, school), the City refunds 97.5% of the taxes received to the developer. This continues until the 16 years is reached or the $1.35 million has been reached, whichever comes first. Administrator Statz stated there are two basic questions: 1. should the city use tax increment financing as a tool to incentivize the development of a 53 unit apartment building? And 2, should an apartment building be constructed on Block 7? He stated that there are other correlated questions. If an apartment is the desired development for Block 7, are there other incentives that should be considered? If no incentives are used, how long is it ok to wait for development? If not an apartment building what is an appropriate development and what affect do alternatives have on the Comprehensive Plan and the Downtown Master Plan? Administrator Statz stated that there are other things to consider to as to TIF or not to TIF: Northland Securities has been hired by the EDA nancial summary to be valid. This summary shows a gap in the project funding, which means that without TIF assistance, it would not be viable. He noted, again, Northland is working for the City, not the developer and if the City wishes to have an apartment built on the site, this TIF proposal is the best way to do. This advice comes after evaluating other ways to make-up of this financial gap, including non- TIF scenarios. If the City moves forward with the development, on day one, the city will receive $350,000 for the land which would go to the general fund, $162,000 in park dedication fund which would go to pay down the debt to the sewer fund. $124,200 in water connection fees, $3,623 in storm water fees and $54,500 in building permits. This amounts to roughly $794,000. This money is only refunded to the developer through taxes that we are not currently collection. Also there would be additional $4,500 per year of non-TIF reimbursable taxes, estimated $7,000 per year to water fund, estimated 10,000 per year for sewer revenue, estimated $10,000 per year to storm sewer, and estimated $2,500 per year in al revenue from day one of the project. Administrator Statz stated that the additional burden on general government needs without taxes to offset costs for the first 16 years could affect the fire/police, elections/ IT services and other population based contracts. Things that would not be affected would be building costs, debt services and mowing. Some other thing that you could take into consideration Page 3 of 18