HomeMy WebLinkAboutTIF Application Part 2City of Iowa City, Iowa
Economic & Community Development
Tax Increment Financing Assistance
Application Part 2
Part 2 of the application is designed to collect further details and
to collect the information required to conduct a financial gap analysis.
The City of Iowa City considers support for economic or community development projects that will provide local
public benefits. The City Council revised the Iowa City Tax Increment Financing (TIF) Policy in November 2017, a copy of which can be found online at TIF Policies, updated 11.21.17
All
projects must help achieve community goals as established by the City Council’s adopted Strategic Plan, the most recent of which can be accessed here: Strategic Plan 2016-2017.
First,
update Application Part 1, if it was submitted earlier
Perhaps, time has passed since you submitted your Application Part 1, so we request that you update any information contained
within it and resubmit with the following financial gap analysis information
Next, complete the following pages and submit the package of information.
Applications are not complete
until all requested information is submitted.
When complete, submit the entire package to:
Iowa City Economic Development Committee
Attn: City of Iowa City, Economic Development Coordinator
410
East Washington Street
Iowa City, IA 52240
Request materials can be submitted electronically to the Economic Development Coordinator at:
Wendy-Ford@iowa-city.org
Questions about this
Gap Analysis application may be directed to Wendy Ford, email above, or by calling 319-356-5248.
Gap Analysis Application
Project Name
The financial gap analysis stage includes a thorough third-party review of all financial aspects of the project. The process is designed
to ensure that private sources of funds are maximized and that the project would not occur “but for” the City’s contribution of TIF funds
Please update and resubmit your project’s Application
Part 1 form with any changes/new information since the time of its original submittal. Below is a list of the items required in the Application Part 1. If you need another copy of the
form, please email wendy-ford@iowa-city.org to request a copy.
( Request letter detailing how the project is compatible with the
___ City’s Strategic Plan
___ TIF Policies
___ Requirements
of the TIF district in which it is located
___ Project Description
___ Why city subsidy is required
( Documentation of Site Control – Resubmit if:
___ Changed or modified since Application
Part 1
___ Ownership or ownership structure has changed
( Applicant Contact Information
( TIF request and rationale for the amount
( Project Information including:
___ Development
Team and Development Team Narrative
___ Projected Operations Start Date
___ Company Plans Narrative
( Capital Investment Information – Update all information including but not limited
to:
___ Revised Cost Narrative
___ Sources and Uses Overview - update with numbers generated in the more expansive pro-forma required as part of this Gap Analysis Application
___ Updated
appraisal supporting acquisition costs
___ Updated Debt, Equity and Other Sources (grants, tax credits etc.) documentation
___ Changes to Developer Fee payments
( Operating Expenditures
and Operating Revenues – update with numbers generated in the more expansive pro-forma required as part of this Gap Analysis Application
( Regulatory Review Status
( Environmental/Sustainability
Information – including updated narrative descriptions of Environmentally Friendly Features and both Positive and Negative Environmental Impacts
( Additional Community Benefits
( Employment
Information and Employee Benefits
( Disclosure Form – Update the disclosure and note any changes in the Request Letter
The information in the updated Application Part 1 form, the Gap
Analysis Application, and all attachments will be used to consider your request for financial support, and to prepare cost-benefit, financial and risk analyses of the project.
The
updated Application Part 1 form and attachments is considered part of the Gap Analysis Application. All information provided in form must be consistent with the attachments required
for this Gap Analysis Application. Examples include:
Any environmentally friendly features of the project that are described in that the Application Part 1 narrative should be included
in the development budget presented for gap analysis.
Pro-forma rents should reflect Affordable Housing commitments described in Request Letter.
Acquisition costs should align with values noted in attached appraisals
Information provided
on this form may be made available for public viewing and will be part of compliance benchmarks, if approved for assistance. Prior to submission, applicant may wish to seek technical
assistance from City Staff to address questions and ensure proper completion.
Please provide data in the cells below. Applicant is encouraged to attach additional pages as necessary
to fully explain and support the answers to each question. Note anything additional you wish the City to take into consideration for your request and provide supporting documentation.
Economic Development Support Requested
Tax Increment Financing (TIF) requested: $__________
Description of why subsidy is required:
Application Tips:
Example:
Redevelopment of vacant city lot into Residential/Retail mixed use to include 15% Affordable housing. Subsidy required to support the cost of environmental clean-up and deeper affordability.
Capital Investment Information for New Facility or Expansion/Rehab
Estimated Size of New Facility SF (square feet)
Application Tips:
Estimated Size of Land for New
Facility SF
Current Size of Expansion or Rehab Facility SF
Proposed Size of Expanded or Rehabbed Facility SF
Land included in Expansion or Rehab Project SF
Detailed
Cost Narrative:
Detailed Cost Narrative e.g. Site improvements include upgrading of utility service to the property, demolition of a 1980s addition to the historic structure and
grading. Construction costs provided by LMNOP contractors based on Architects plans prepared in conformance with the National Parks Service Part 2 required for federal Historic Tax
Credits. Equity from the syndication of these tax credits is included as Owner’s Equity in project Sources. Soft costs include syndication costs and legal expenses.
For the new
or expanded/rehabbed facility, enter the amount the company anticipates spending for initial and subsequent investments in land, buildings and improvements
If expansion, only include
information on size and values of the new facility, not existing facility.
If land is currently owned, enter current land value from Johnson County property tax records. Otherwise,
enter the market value amount the company will pay for land and attach appraisal documentation of value.
If Developer fee is budgeted, please indicate to whom the fee will be paid
Owner
Equity must be greater than TIF Request
TIF Request is the difference between project uses and all other available financing. Do NOT attempt to calculate the tax increment that will
be generated by the project: The City’s Tax Assessor’s Office will perform these calculations.
Attach Appraisal supporting Acq. Cost
Attach LOIs or Term Sheets demonstrating ability
to secure debt and equity financing including any other subsidy sources such as grants, state tax credits, etc
Uses
Total
Acquisition
Site Improvements
Construction
Furniture, Fixtures, Machinery, Equipment
Professional Fees
If land is currently owned, enter current land value from Johnson County property tax records. Otherwise, enter the market value amount the company will pay for land and attach
appraisal documentation of value.
If Developer fee is budgeted, please indicate to whom the fee will be paid
Owner Equity must be greater than TIF Request
TIF Request is the difference
between project uses and all other available financing. Do NOT attempt to calculate the tax increment that will be generated by the project: The City’s Tax Assessor’s Office will perform
these calculations.
Attach Appraisal supporting Acq. Cost
Attach LOIs or Term Sheets demonstrating ability to secure debt and equity financing including any other subsidy sources such
as grants, state tax credits, etc
Uses
Total
Acquisition
Site Improvements
Construction
Furniture, Fixtures, Machinery, Equipment
Professional
Fees
Construction Financing
Permanent Financing
Soft costs
Reserves
Developer Fee
Total Uses
Sources
Owner Equity
Long
Term Debt
Sales Proceeds – if any
Other subsidies
Total Sources
Gap/TIF Request (Total Uses – Total Sources)
Owner Equity Must be greater than TIF Request
Su
pporting Information
Land/building acquisition appraisal attached? ( Y ( N – explain, if no
Debt & Equity LOI/Term Sheets attached? ( Y ( N – explain, if no
List
Developer Fee Payee: $
Operating Revenues – Long Term Ownership
Projected Revenues at the new, expanded or rehabbed facility
Application Tips:
Long Term Ownership Operating
Revenue and Expenditures -- complete only for projects where owner will have a long-term interest in property to be leased – examples: office buildings, hotels, residential, retail,
mixed use, etc.
Enter N/A if project involves relocation of a company from out-of-area or if it involves a separate, new facility.
Enter new expense amounts anticipated at the expanded
or rehabbed facility
Enter projected expenses for new facilities
Operating Narrative:
Provide a detailed description of how projected expenses and revenues were calculated (e.g.
using market study, appraisal or historic data to estimate rents, vacancy rates etc.) Provide supporting documentation if available.
Operating Expenditures – Long Term Ownership
Existing
Facility Rehab or Expansion - CURRENT Annual Operating Expenses
Existing Facility Rehab or Expansion -PROJECTED Annual Operating Expenses after Expansion/Rehab
New facility
- Projected Annual Operating Expenses
Net Operating Income – Long Term Ownership
Anticipated Annual Net Operating Income at stabilization (A - C or A - D)
Operating
Narrative:
Note: Application may be required to provide additional financial information for the project and company.
Regulatory Review Status
Regulation/
Policy
No Change Required
Change Requested
(enter date materials submitted or recommended/approved)
Description of Variance Required
Applicati
on tips:
Use the table to provide a detailed summary of all state, local and federal regulatory variances required for the project to move forward.
Contact staff in appropriate department
for technical assistance regarding regulatory requirements.
In the Description section, include the name and contact information for the staff person in each department that the development
team worked with. Attach additional pages as needed.
(Check all that apply)
Not
Submitted
Pending
Recommended/ Approved
Local
Zoning
Sub-division/
PUD
Parking
Affordable
Housing
State
DNR
DOT
Fe
deral
FAA
Other
Architectural & Engineering Plans
Architect Name:
Application Tips:
Enter contact information for the Architect
Attached Plans - should:
Note # and square footages for residential units, commercial space, # of parking spaces etc.
Comport with submitted financial projections and regulatory
requirements (e.g. construction cost estimates should be based on attached plans; planned parking spaces should meet city parking requirements; building height should not exceed FAA
requirements, etc.)
Site Plan - attach
Attached Plans - Check One
( Schematic
( 50%
( 100%
( Other – Explain
( Not Provided - Explain
( Site Plan
Supporting Documentation
Attached
Local
( Zoning
( Sub-division/PUD
( Parking
( Affordable Housing
Supporting Documentation
Check all applicable items available to date and attach any relevant letters/
notifications identifying project specific requirements and/or waivers of, or exemptions from, those requirements. These documents should also be the basis for updating the Regulatory
Review Status table in the Application Part 1 form.
State
( DNR
( DOT
Federal
( FAA
Federal
( FAA
( Relocation Plan
(required if redeveloping currently occupied property – residential or commercial)
Other - Explain
Detailed Financial Information
Check
box for each item submitted
Financial Projections
Application Tips:
Financial Projections -
Developer may:
Use their own format, but it must be submitted as an Excel Spreadsheet
(Applications will be considered incomplete if projections are submitted in PDF, Word or other formats)
Request a copy of the format used by the City’s third-party analyst by emailing
wendy-ford@iowa-city.org
Projects with long-term ownership interest and revenues from leased assets must submit:
Development Budget
20 Year Operating Proforma
Detailed Sources and Uses
(
Development Budget
( 20-year Operating Proforma
( Detailed Sources and Uses
( Monthly Cash Flow
( Profit and Loss
Supporting Documentation
Construction
Estimate
( From Architect
( From Contractor
( Environmental Review
(Phase I or Phase II if Required)
( As-Proposed Appraisal
(used in calculating debt capacity or
establishing sales prices)
( Independent Market Study
(used to establish the market for the proposed project as well as the lease, vacancy, absorption and capture rates used
in the project’s financial projections)
Lease or Sale Agreements
( Agreements – LOI’s, Leases, Pre-sales
( Narrative – detailing leasing/sales plan including use of any third
parties
For-Sale Projects must submit:
Development Budget
Monthly Cash Flow - thru sale of last unit
Project level Profit and Loss Statement
Must include any relevant realtor/broker
fees and other costs of sale
Financing
Construction Financing
( LOI
( Term Sheet
( Commitment Letter
Permanent Financing
( LOI
( Term Sheet
( Commitment Letter
Equity
( LOI
(
Term Sheet
( Commitment Letter
Other (grants, tax credits etc.)
( LOI
( Term Sheet
( Commitment Letter
Financial Projections must comport with information found in the submitted
supporting documentation. Examples:
The construction line item in the Development Budget should match the submitted contractor’s estimate;
Vacancy rates used in the pro forma should
be as identified in the project’s market study or appraisal;
Rental income should match lease rates and terms found in any LOIs submitted;
Sources should align with commitments of
debt and equity;
Required relocation costs (consistent with any submitted relocation plan) must be included in the development budget etc.
Financing
Construction Financing
( LOI
( Term Sheet
( Commitment Letter
Permanent Financing
( LOI
( Term Sheet
( Commitment Letter
Equity
( LOI
( Term Sheet
( Commitment Letter
Other
(grants, tax credits etc.)
( LOI
( Term Sheet
( Commitment Letter
Financial Projections must comport with information found in the submitted supporting documentation. Examples:
The
construction line item in the Development Budget should match the submitted contractor’s estimate;
Vacancy rates used in the pro forma should be as identified in the project’s market
study or appraisal;
Rental income should match lease rates and terms found in any LOIs submitted;
Sources should align with commitments of debt and equity;
Required relocation costs
(consistent with any submitted relocation plan) must be included in the development budget etc.
Guarantors *
( List of Guarantors (entities and/or individuals)
( Narrative describing
types of guarantees being provided and by whom:
Completion
Loan
Operating Deficit
Tax Credit
Other
*Financial statements may be required for any/all guarantors listed
Other Sources
of Subsidy
Subsidy Type
Amount
Not Applied
Anticipated Date of Application
Applied/
Pending
Anticipated Date of Approval
Committed
Application Tips:
Use the table
to indicate the amount of any additional subsidies the project has or may receive and the status of any applications. Insert dates and amounts as indicated.
Other
Sources of Subsidy Narrative – Include information on other subsidies for which the project may be eligible. As appropriate, explain why any additional subsidies for which the project
may be eligible are not being utilized.
State Tax Credit
(date)
(date)
(date)
Brownfield
$
(
(
Workforce Housing
$
(
(
Historic
$
(
(
Federal Tax Credit
(date)
(date)
(date)
LIHTC
$
(
(
HRTC
$
(
(
Investment
$
(
(
Other Grants/Subsidies
(date)
(date)
(dat
e)
Specify:
$
(
(
Specify:
$
(
(
Total
$
Other Sources of Subsidy Narrative
Note: Applicant may be required to provide
additional financial information for the project and company.
Additional Project Information
Development Team
(fill in if there have been changes since your Application Part 1submission.)
List Team Members
Application Tips:
Organizational
Chart – Show all entities involved in the transaction, their roles and membership
Identity of Interest Narrative – If there is an identity of interest between developer, owner, contractor,
operator, or management company (or members thereof), include a narrative describing all fees being paid to and/or profits shared with common entities. For Example: A development
company that has an affiliated construction arm, a property management division, and which has an interest in the long-term ownership of the project may be receiving multiple income
streams from the same project (developer fee, contractor profit, management fees and a distribution of cash flow). All sources of revenue must be considered in evaluating reasonable
returns for the Development Team and subsequently the amount of public support.
Project Schedule – List all appropriate milestones for the proposed project including, but not limited
to:
Anticipated regulatory approvals
Financing Commitments
Beginning of Construction
Construction Completion/PIS
Absorption Schedule or lease up period
Stabilization
Add pages as necessary
Owner
Developer
Architect
Contractor
Property Manager/Broker
( Organizational Chart of Development Team Attached
Identity of Interest Narrative:
Proje
ct Schedule
Complete for jobs-based incentives only - Employment Information
Construction Employment for New Facility or Expansion
Application Tips:
Complete this section ONLY for jobs-based
incentives.
Enter information by major job type (e.g. administrative, support, professional, executive, production, etc.)
For a local expansion, Net New Jobs = number of additional
employees to be hired each year, excluding employees that are already employed in Iowa City.)
Average Annual Salary: Only provide wage information. Do not include the value of non-wage
benefits such as insurance and time off.
For assistance, contact the Economic Development Coordinator at
wendy-ford@iowa-city.org
# Full-Time, Construction Jobs:
Average
Annual Salary for Full-Time, Construction Workers
(during construction period):
Construction Period (months):
For Expansion, # of Full-Time Employees Currently Working in
Iowa City:
New Employment Resulting from Project
Net New Jobs (full-time, permanent)
Year
[Enter job type here]
[Enter job type here]
[Enter job type here]
[Enter
job type here]
# Jobs
Avg Annual Salary
# Jobs
Avg Annual Salary
# Jobs
Avg Annual Salary
# Jobs
Avg Annual Salary
Year 1
2
3
4
5
6
7
8
9
10
Total
Anticipated # of Employees to Be Relocated Locally as a Result of the
Project
# of Net New Full-Time Employees anticipated to be relocated from outside of Iowa:
# of Net New Full-Time Employees anticipated to be relocated from outside of Iowa
City/Johnson County:
Complete for jobs-based incentives only - Employee Benefits
Description
After Project Completion
% of Employees with Company Provided Health Care Insurance
%
of Health Care Premium Covered by Company
% of Employees with Company Provided Retirement Program
Will Job Training be Provided for Employees? (Y/N)
If Yes, Please
Describe:
What is the Lowest Hourly Wage Offered to New Employees?
What Percentage of Your New Employees Will Receive this Wage?
Will You Provide Additional Benefits to
Employees? (Y/N)
If Yes, Please Describe:
Gap Analysis Application Submission:
When you have completed this form to your satisfaction, please sign and send to:
City of Iowa City
Attn: Economic Development Coordinator
410
East Washington Street
Iowa City, IA 52240
Email: wendy-ford@iowa-city.org
I hereby certify that the foregoing and attached information contained is true and correct, to the best of
my knowledge:
Applicant/Representative:
(Please
Print)
Signature: Date:
Disclosures
Company Form of Organization:
List the full name(s) of each principal (partner or member) who owns (or will own) an interest of 5% or more of the company/project.
In the case of businesses owning another business (such as an umbrella LLC that is the owner of several other LLC's), the actual partners' names need to be listed, not just the registrant's
name with the Secretary of State.
If any of the above listed principals are currently delinquent or in default on any debts, responsibilities, or other obligations owed to
the City, provide details on property owner name, property address, current property tax status, special assessment status, and outstanding obligations owed to the City, and why delinquent
or in default. (Use additional sheets as required.)
List all subsidiaries or affiliates and details of ownership:
Subsidiaries:
Principals:
Has Company or
any of its Directors/Officers been involved in or is the Company presently involved in any type of litigation?
Has the Company, developer or any affiliated party declared bankruptcy?
Has
the Company, developer or any affiliated party defaulted on a real estate obligation?
Has the Company, developer or any affiliated party been the defendant in any legal suit or
action?
Has the Company, developer or any affiliated party had judgments recorded against them?
If the answer to any of the above question is yes, please explain:
AFFIDAVIT
THE STATE OF ______________ )
THE COUNTY OF ____________ )
I, _________________________________, being of lawful age, and having been first duly sworn upon my oath, do
hereby state:
1. I am a resident of ___________________, ______________.
2. As of the date set forth below, I have no financial interest and no entity in which I have any interest,
has any financial interest in any real property, located anywhere in the state of Iowa, that is delinquent on any special assessments, delinquent on any ad valorem taxes, or the subject
of any federal, state, or local tax lien.
3. As of the date set forth below, I am not currently delinquent or in default and no entity in which I have any interest is currently delinquent
or in default on any debts, responsibilities, or other obligations owed to the City of Iowa City, Iowa.
________________________________
Applicant signature
________________________________
Appli
cant print name
SUBSCRIBED AND SWORN before the undersigned on this _____ day of _________________, 201_.
________________________________
Notary Public
My Appointment
Expires: