2024-06-12 CC Packet - Laserfiche WebLink

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MEMORANDUM To:City of Centerville From: Tammy Omdal Date:June 5, 2024 Re:Tax Increment Financing (Redevelopment) District No. 1-8 The City of Centerville (the “City”) received an application from Ebert (the “Developer”) requesting tax increment financing (TIF) assistance to assist the redevelopment of a residential building on the corner of Westview Street and Centerville Road in the city. The proposal is to redevelop approximately 2.9 acres of underutilized land in the western portion of Centerville into a residential development consisting of an approximately 104-unit market rate apartment building with underground parking (the “Development”). The property (parcels) listed in Exhibit A are proposed to be within the boundaries of a redevelopment TIF district along with the adjacent roads and right-of-way to these parcels (the “Property”). The City completed the inspection of the Property for inclusion within a proposed redevelopment tax increment financing district, Tax Increment Financing (Redevelopment) District No. 1-8 (the “TIF District”). The report of the City’s findings is included in Exhibit VI of the Tax Increment Financing Plan for the TIF District. The purpose of this memorandum is to provide background information for the Development and proposed terms for tax increment assistance, among other information. Background The Development cost, as prepared by the Developer, is estimated at approximately $30.2 million. The Developer is requesting tax increment to reimburse a portion of certain development costs to be incurred by the Developer, including land acquisition and site improvements costs for the Development. Information on the terms for assistance follows. The Developer has represented that they will not undertake the Development without tax increment financing (TIF) assistance. Financial Assistance It is Northland’s opinion that the Development is unlikely to occur but for the TIF. Without TIF assistance, the Development is not expected to achieve the level of debt service coverage and returns needed to secure the necessary private financing and equity. The level of density of the Development is possible because of the underground parking. The Development inclusive of the underground Northland Securities, Inc. 150 South Fifth Street, Suite 3300, Minneapolis, MN 55402, Main Tel. 612-851-5900 www.northlandsecurities.com Member FINRA and SIPC | Registered with SEC and MSRB