Foundry Project/Preliminary Review

Transcription

1 Foundry Project/Preliminary Review

2 The Project Five Screen, 625 Seat movie theater Public plaza space for community events and activities 460 space parking structure 142 units of housing (rental) 15,000 square feet of retail 53,000 square foot hotel with 90 to 110 rooms

3 The Terms (draft) The City agrees to provide the land, use tax and fee waivers provide an additional $7 million for public improvements issue DDA bonds for up to $10.5 to 11 million to be repaid through tax increment from the DDA and a property tax mill levy through the Metro District (capped amount for the public improvements is $17,676,367) Brinkman Partners agrees to build the Foundry project as outlined in the agreement and the previous slide within the prescribed time frames to build the 460 space parking facility to be owned by the City to create a Metro District and impose 30 mills to support the DDA bonds (25 mills) and the public plaza space (5 mills) to charge a one percent Public Improvement Fee on all taxable sales to support the parking facility

4 Project Funding Sources of Funding Uses of Funding City Contributions Land 5,800,000 Parking Structure 13,700,000 Abatement/Other 1,400,000 Plaza Space/Public Improvements 4,000,000 Public Improvements 7,000,000 TOTAL 14,200,000 DDA Contribution $10,500,000 Public Total $24,700,000 17,700,000

5 Project Assets Assets to be retained by the City Public Investment Land/Parking Structure $1,100,000 Land 5,800,000 Abatement/Other 1,400,000 Plaza Space $600,000 Public Improvements 7,000,000 subtotal 14,200, N. Cleveland $600,000 Movie Theater Subsidy $2,200,000 Parking Structure $13,700,000 $16,000,000 $16,400,000

6 Other terms Metro District will charge the properties 5 mills that will be used for operations of the plaza space In support of the operations and maintenance of the parking facility, the developer has agreed to impose a: $42 per unit/per month fee for the parking facility a $.50 cent per movie ticket fee for the parking facility a $.50 cent a square foot common area charge on the retail space (excluding the theater and hotel) a one percent Room Service Fee on hotel Developer agrees to minimum valuations for the property valuations to support the Tax Increment, will be required to make up the difference

7 Movie Theater incentive Subject to annual appropriation, the City agrees to a $200,000 per year lease subsidy for ten years with 2 percent escalator The total cost to the City over ten years would be $2,189,944 The City is entitled to a share of the proceeds from the developer above a 10 percent return as shown in Exhibit H

8 Phase I completed 18 months from ground breaking

9 Phase II commence construction by 12/31/18

10 Closing occurs when the developer obtains all permits for Phase I of the project the developer submits a full financing plan for Phase I and II the City receives and approves the developer s financing plan the Metro District service plan is approved Groundbreaking is tentatively scheduled for April 17, 2017

11 Reconveyance Provisions For Phase I: Subject to Force Majeure and 120 day notice by the City the City has the right to compel the developer to re-convey the property; If the developer fails to commence construction 45 days after closing Suspends construction at any time prior to the issuance of the first certificate of occupancy For Phase II: Commence construction by December 31, 2018 as evidenced by: developer obtaining all required permits and licenses, and Installation of a permanent construction elements, such as a caisson, footing, foundation or wall

12 Phase II Reconveyance If the developer fails to proceed with Phase II under the terms of the agreement: reconvey the Phase II parcel to the City and agrees to make annual payments to the City equivalent to $1.5 million of the debt at the interest rate as of the issuance; or if the property is developed AFTER 12/31/19 the developer will receive a credit for the Tax Increment generated by the site

13 Economic Impact One time construction impacts (over 36 months): 437 direct employment $24,814,133 on direct labor income At stabilization: 133 total employment $12,803,359 total output annually The estimated annual net new revenue to the City directly related to the project is $163,425 Excludes any revenue dedicated to TIF Captures only to the new residents and businesses within the Foundry project Estimated $646,000 in annual new spending in Downtown from the new residents and businesses outside of the project area.

14 Questions