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Resolution approving term sheet for tax incremental financing with Cream City Real Estate Investments LLC for a multi-family development at 2825/2835 N. Mayfair Road
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WHEREAS, Cream City Real Estate Investments LLC (the "Developer") has proposed the development of Latitude 43, a 92-unit market-rate apartment building to be located at 2825/2835 N. Mayfair Road; and
WHEREAS, the proposed development site consists of two parcels that will be combined prior to construction and is anticipated to be located within a newly created Tax Increment District No. 17 (TID 17); and
WHEREAS, the Developer requested Tax Incremental Financing (TIF) assistance to support the project due to current market conditions impacting multifamily housing development, including increased construction costs, elevated interest rates, and financing challenges; and
WHEREAS, the City engaged Ehlers to conduct an independent financial feasibility analysis of the proposed development and the requested public assistance; and
WHEREAS, Ehlers determined that a Municipal Revenue Obligation (MRO) Note in the principal amount of $2,850,000, to be repaid on a pay-as-you-go basis from 80 percent of the annually generated tax increment over a term of up to 16 years, represents an appropriate level of assistance to support the project's financial feasibility; and
WHEREAS, the proposed development is projected to have an estimated stabilized market value of approximately $21,896,000, representing a substantial increase over the current base value of approximately $2,277,000 and generating significant tax increment within the district; and
WHEREAS, in lieu of providing on-site affordable housing units, the Developer has committed to making a one-time contribution of $100,000 to the City's Affordable Housing Fund; and
WHEREAS, approval of the term sheet will allow staff to proceed with preparation of the necessary development agreement and other documentation related to the proposed TIF assist...
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