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SUBJECT: CORE PROJECT AREA AGREEMENT <br />DATE: JUNE 9, 2014 <br />PAGE4OF4 <br />a. 155 Apartments valued at $250,000 per unit <br />b. 60 Townhomes valued at $525,000 per unit <br />c. 1,800 sf Amenity Building valued at $125 per sf <br />d. 8,000 sf of Commercial space valued at $150 per sf <br />2) Tebo Development consisting of: <br />a. 23,400 sf of commercial space valued between $125 - $150 per sf <br />3) Development on Boom parcel consisting of: <br />a. 27,000 sf of commercial space valued at $150 per sf <br />b. 24 apartments valued at $250,000 per unit <br />4) Mill Levy of 84.45 <br />5) Reductions for the County payments, Staff Costs, and Underpass Payments <br />Total TIF Revenue received net of other obligations is $10,666,741 and total payments <br />to service the $4,500,000 of bonds with capitalized interest is $9,704,305 leaving a <br />revenue surplus from the Core Project Area of $962,436. Should these assumptions <br />become reality, the $4,500,000 bonds can be serviced from the TIF generated from <br />these developments. <br />Staff’s last revenue model was done in January 2014 and is attached for comparison <br />purposes. That analysis showed net revenue proceeds of $8,091,000 to facilitate at <br />$3,700,000 bond. The major differences between the two models are: <br />1) The inclusion of Boom property development of 24 apartments and 27,000 sf <br />of commercial space. <br />2) Increasing the values per unit of the apartments, townhomes, and commercial <br />spaces. <br />3) Smaller contributions to staff costs than staff’s model. <br />RECOMMENDATION: <br />Staff requests LRC discussion of the above changes to the Core Project Area <br />Agreement, Term Sheet, and exhibits to determine if the modifications are appropriate <br />for inclusion. <br />Included is a resolution approving the Core Project Area Agreement and an amended <br />Term Sheet. Staff requests LRC action as to which improvements are allowed <br />expenses for the Bonds and the form of the Core Project Area Agreement, Term sheet <br />and Exhibit D the LRC believes appropriate. <br />ATTACHMENTS: <br />1) Resolution approving Core Project Area Agreement <br />2) Redline version of Core Project Area Agreement <br />3) DELO Version of Exhibit D <br />4) Staff Version of Exhibit D <br />5) Delo Project Bond Model <br />6) January 2014 Staff Bond Model <br />LOUISVILLE REVITALIZATION COMMISSION <br />9 <br />