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MEMORANDUM <br />T0: <br />FROM: <br />DATE: <br />SUBJECT: <br />:���i���=�c� <br />Pat Trudgeon, Community Development Director <br />Mikaela Huot, Vice President/Consultant <br />October 16, 2012 <br />Springsted Incorporatetl <br />380 Jackson Street, Suite 300 <br />Saint Paul, MN 55101-2887 <br />Tel: 651-223-3000 <br />Fax: 651-223-3002 <br />www.springstetl.com <br />Financial Analysis of Proposed Twin Lakes Apartments, LLC Housing Project <br />The City of Roseville has asked Springsted to evaluate the tax increment financing (TIF) request submitted by Twin <br />Lakes Apartment LLC (the developer) for the proposed development of a multi-phase housing project consisting of <br />approximately 215 units in 3 buildings with separate amenity facility. We have reviewed the project assumptions and <br />general rationale for TIF assistance submitted by the developer. It is our understanding that the developer is in the <br />process of assembling financing for the project, had received a preliminary financing letter from Multifamily Capital <br />Funding LLC in November 2011 and is currently working on updatetl financing commitments necessary to proceed <br />with the project. The initial letter hatl indicated that any project funding would be at least partially contingent on City <br />tax increment financing assistance and that a TIF Note is necessary to provide sufficient cash flow to meet the <br />annual debt service coverage requirements in the operating proforma. <br />Based on this information, the City could be justified in making a"but for" finding that the anticipated development <br />would not reasonably be expectetl to occur solely through private investment within the reasonably foreseeable <br />future. We recommend, however, that the City also consider an appropriate level of TIF assistance for <br />reimbursement of certain eligible project costs based on the tleveloper's information. The purpose of this memo is to <br />outline our analysis of the project including review of the developer's request for assistance, tax increment revenue <br />projections, review of the developer's project proforma and outline of proposed Development Agreement business <br />points. <br />Background of TIF District No. 17 <br />The City of Roseville has previously established Tax Increment Financing (Redevelopment) District No. 17, known as <br />Twin Lakes for the redevelopment of certain properties into a mixed-use project. Based on establishing dates of the <br />district, the following applies when considering future projects proposed within the boundaries of the existing district: <br />F'ublic Sector Advisors <br />