2006-10-17_Minutes - Laserfiche WebLink

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Chair Majerus asked for a summary of the information collected on the project. Executive Director Bennett summarized the project and review completed by HRA Attorney Jim Casserly along with the HRA subcommittee. Executive Director Bennett noted a modification to the staff report clarifying the percentage of public support. The original calculation included the amount that CCHT is requesting for tax credits which is considered equity in the project. The percentage of HRA/City assistance to total project cost and total HRA/City assistance to other project assistance is outlined below. The City’s financial participation is 33% (rehab) and 47% (new) of the total assistance being requested through other public entities, non-profits, foundations and private corporations. However, the city assistance requested is only 2.8% (rehab) and 5.7% (new) of the total sources of financing on the project. This is a clear partnership between public, nonprofit and private entities. Costs: Rehab New Acquisition $4,374,000 $1,102,000 Construction $5,193,071 $6,978,425 Contingency (5%) $411,046 $277,137 Environmental $63,000 $6,000 Soft Costs $2,501,407 $2,201,471 $12,542,524 $10,565,033 Total Per Unit Cost $121,772 $211,301 Revenues: Mortgage $4,498,855 $2,108,309 Equity – including tax credits $6,989,909 $7,181,916 Public Sources $1,053,760 $1,274,808 Total $12,542,524 $10,565,033 % HRA/TIF assistance to 2.8% 5.7% total sources % of HRA/TIF assistance to 33% 47% public/foundation/corporation assistance Executive Bennett noted that the project clearly needs public assistance to proceed as planned. Currently, CCHT is just providing cosmetic improvements but that the property needs to be completely renovated to be successful and provide a quality living environment. To do that and keep the rents affordable will require partnership with many public funding agencies. The HRA assistance and City support for tax increment will provide the needed local support to make the project move forward and assist in securing other outside funding. Chair Majerus wanted clarification regarding the $350,000 requested from the HRA. Is this a grant or loan? (Would be structured as a deferred loan). What is CCHT were to dissolve? (An agreement would be structured to take these situations into consideration and provide protection for the HRA’s funds. Are there going to be additional consulting fees from Krass Monroe on this project? (Yes). Chair Majerus would like to get a specific quote of what it is going to cost the HRA to facilitate this request and how they can get reimbursed for those costs in the future. 9