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RC 18- <br />Request for Tax Abatement <br />City received application from Equinox Development <br />Partner requesting Tax Abatement to support the <br />construction of 59 market rate rental townhomes in the <br />City <br />City engaged Northland to assist the City with the review <br />of the application and process to consider approval of Tax <br />Abatement <br />Developer provided requested project pro forma and other <br />information to Northland <br />11 <br />ЊЊ <br />RC 18- <br />Snapshot of Pro Forma Estimates for Rehbein Site <br />Calendar Year20322037 <br />Year of Tax Abatement DistrictYear 5Year 10 <br />Income before Tax Abatement1,987,6912,194,572 <br />City Tax Abatement to Developer77,98282,243 <br />Income after City Tax Abatement2,065,6732,276,815 <br />Less operating expense and reserves739,181828,614 <br />Net operating income1,326,4921,448,201 <br />Less debt service1,005,9071,005,907 <br />Net cash flow with City Tax Abatement320,585442,294 <br />YTD Average Cash on cash with City Tax Abatement3.0%4.0% <br />YTD Average Cash on cash without City Tax Abatement2.3%3.1% <br />Leveraged 10-Year Hold IRR with City Tax Abatement8.7% <br />Leveraged 10-Year Hold IRR without City Tax Abatement8.1% <br />YTD Tax Abatement to Developer325,365727,973 <br />Present Value of YTD City Tax Abatement to Developer270,227520,762 <br />Assumptions: <br />1/ Total Development Cost (TDC): 21,415,880 <br />2/ Developer Equity:7,301,580 <br />12 <br />ЊЋ <br />Northland Public Finance6 <br />51 <br /> <br />