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III 11111111111111111111 <br />To <br />IF`roorn <br />Date <br />S u Ibjec°t <br />Patrick Brahma — Economic Development Manager <br />Stacie Kvilvang - Ehlers <br />September 17, 2015 <br />Analysis of Request for Assistance - PSD Apartments <br />The City has received a proposal from PSD LLC to construct a 122 -unit market rate <br />rental project on land it purchased from the City in January of this year. The <br />development is expected to commence construction this fall and be completed in 2016. <br />Due to increased costs in construction, the Developer is requesting $500,000 in <br />assistance from the City. This memo is intended to review the need for TIF assistance <br />based on our analysis of the developer's project budget and projections, generally <br />known as a pro forma. This memo also includes a recommendation for an amount of <br />assistance based upon this review. <br />Ehlers conducted a thorough review of the developer's budget and operating pro forma <br />to ensure all development costs, anticipated revenues, and expenditures were <br />represented appropriately. The table below depicts the proposed sources and uses for <br />the project. <br />SOURCES <br />Developer Financing <br />Developer Equity <br />TOTAL SOURCES <br />nil <br />11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 <br />14,165,515 <br />4,721,838 <br />75.00% <br />25.00% <br />18,887,353 <br />100.00% <br />USES <br />Acquisition <br />Construction <br />Professional Services <br />Financing Costs <br />Developer Fee <br />TOTAL USES <br />�� �l�l111�� ��111� 1111111111111111 �''�' <br />1,339,252 <br />15,827,368 <br />542, 923.00 <br />902,810 <br />275,000 <br />Illu��l�llllllllllllllllllll <br />7.09% <br />83.80% <br />2.87% <br />4.78% <br />1.46% <br />10,977 <br />129,733 <br />4,450 <br />7,400 <br />2,254 <br />18,887,353 100% 154,814 <br />LEADERS IN PUBILOC FINANCE <br />Minnesota <br />Offices also on Wise nsin and 111'inoes <br />ph oil e 651-697-8500 <br />fax 651-697-8555 <br />fell 'fro(, 800-552-1171 <br />1f J�JVhnl, fl <br />3060 Centre Pointe Drive <br />Rosevillle, MN 55113-1122 <br />