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May 18, 2012 <br /> NBE Financial Update <br /> Page 2 <br /> Baseline Development Scenarios <br /> Concept Plan 1 Concept Plan 2 <br /> Housing Units 730 460 <br /> Commercial Development(SF) 590,360 559,360 <br /> Total Market Value $176 million $144 million <br /> Captured Tax Capacity(Annual) $2.49M $2.16M <br /> Total Tax Increment(Life of District) $48.8M $41.1M <br /> Build-Out Schedule (Future Projects) 2013-2016 2013-2017 <br /> The biggest difference between the two concepts is the amount of housing that would be <br /> developed. Both scenarios take into consideration The View Apartments (124 units) already <br /> under construction, meaning that future housing projections range from 330 to 600 units of <br /> additional housing. Similarly, both scenarios take into consideration the APi and DSI buildings <br /> (171,000 SF), which translates into 388,000 to 419,000 square feet of additional development. <br /> After reviewing the baseline scenarios, the EDC suggested that additional analysis be done to <br /> look at the minimum level of development needed to support NBE debt service and what would <br /> happen if there was no additional development, beyond what is in the ground or underway. The <br /> no-development scenario is something the EDC felt the City Council should look at in terms of <br /> future contingency planning. <br /> Alternative Development Scenarios <br /> Min. Development No Build <br /> Housing Units 392 124 <br /> Commercial Development(SF) 488,960 171,360 <br /> Total Market Value $121 million $28.5 million <br /> Captured Tax Capacity(Annual) $1.81M $514K <br /> Total Tax Increment(Life of District) $34.4M $11.3M <br /> Build-Out Schedule (Future Projects) 2013-2017 N/A <br /> Implications of Analysis <br /> Three of the four development scenarios generate sufficient tax increment to cover NBE debt <br /> service and repay some of the money invested by the City through interfund loans from Fund <br /> 460. Obviously, if no additional development were to take place, the City would have to find <br /> resources to help cover future debt service shortfalls beginning in 2026. That impact of a <br /> potential tax levy is shown on the last page. <br /> E:\COUNCIL\REPORTS\2012\Community Development\5-22-2012\CD MEMO-City Council Meeting 5-22-2012.doc <br />