Revitalization Commission Agenda and Packet 2019 04 08

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SUBJECT: DELO LOFTS WEST/EAST ASSISTANCE APPLICATION DATE: APRIL 8, 2019 PAGE3OF4 Staff Estimated Total Value if both projects are constructed = $35,175,000 The total annual TIF generated from Delo Lofts West at full buildout would be $94,000 per year in 2021. The total annual TIF generated from Delo Lofts East at full buildout would be $83,000 per year in 2023. Attached is staff's estimate of TIF revenue for each project. The applicant's TIF estimate is different from staff's estimate. Actual valuations, after construction, could be very different than either estimate anticipates. After accounting for the Intergovernmental Agreements that obligate portions of the future TIF revenue of the LRC, both the West and East redevelopments are estimated to generate $161,000 per year in unobligated revenues in budget year 2023. Advancement of the Urban Renewal Area These projects are the following phases for the Delo redevelopment project and will complete a majority of the improvements along the new Cannon Street right of way. The new retail and hotel businesses to occupy the Delo Lofts East site will generate new sales tax revenue for the City. Staff believes this project meets the three review criteria to be considered for assistance. Analysis of Infrastructure Costs Foundry Builders provided budgetary figures for the improvements to the area infrastructure needed for both projects. The cost breakdown by category are as follows: DeLo West DeLo East Total GENERAL $ 62,322.23 $ 45,000.00 $ 107,322.23 CONTRACTOR SUPPLIED SERVICES $ 5,920.00 $ 6,000.00 $ 11,920.00 EROSION CONTROL $ 20,175.00 $ 15,000.00 $ 35175.00 EARTHWORK/REMOVALS $153,921.39 $ 150,000.00 $ 303,921 .39 WET UTILITIES $140,081.70 _ $ 175,000.00 $ 315,081 .70 SITE CONCRETE $141,760.14 $ 21 ,000.00 $ 162,760.14 ASPHALT PAVING $ 31,346.40 $ 40,000.00 $ 71,346.40 LANDSCAPING $ 84,226.10 _ $ 35,000.00 $ 119,226.10 ELECTRICAL $ 20,400.00 $ 20,000.00 $ 40,400.00 SUBTOTAL: $ 660 152.96 $ 507,000.00 $ 1,167,152.96 CONTINGENCY 5°/n: $ 33,007.65 $ 25,350.00 $ 58,357.65 TOTAL: $ 693,160.60 $ 532,350.00 $ 1,225,510.60 The developer has not provided detailed descriptions of the specific infrastructure desired, so staff will still need to analyze the request whether the infrastructure only services this property or if the improvements are more regional infrastructure benefitting more than just the proposed developments. LOUISVILLE REVITALIZATION COMMISSION