CAS-04_POWERS RIDGE BLDG CCoversheet
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CITY COUNCIL STAFF REPORT
Monday, October 12, 2020
Subject
Chanhassen Apartments TIF Discussion
Section
5:00 P.M. - WORK SESSION
Item No: A.l.
Prepared By
Kate Aanenson, Community Development Director
File No:
SUMMARY
Staff is recommending that the City Council direct the developer to proceed with a PUD amendment for affordable senior housing with the
consideration of 90% of the available TIF for 16 years and 50 units at 60%Area Median Income (AMI) for the life of the district.
BACKGROUND
Todd Simning has requested that the City Council/EDA consider a request for TIF for a 100-unit affordable senior housing project. Current
entitlement for the site is for 88 units (currently at 16 units per acre); the developer is asking for 110 units, which could be permitted with a zoning
amendment and the inclusion of affordable housing.
This item as appeared at the City Council work sessions:
• On duly 27, Mr. Simning presented his request. The City Council directed city staff and the developer to address a number of issues.
• On August 24, the developer and city staff presented additional information on whether or not TIF was necessary for the project to go
forward and if there was a need for affordable senior housing. The Council agreed to have the developer escrow for a TIF analysis by the
city's Financial Advisor, Ehlers.
DISCUSSION
The city has received the TIF Note Cash Flow Analysis from Ehlers (attached).
• The analysis anticipates $175,150 in Annual TIF Revenue generated from the development upon stabilization.
• Using 75% of the available TIF provides 125% minimum annual mortgage coverage threshold to underwrite the project's $2.4 million gap
financing.
• Analysis for the term necessary to fill the 19-year cumulative gap at various % pledge amounts.
For TIF, the statute requires that a rental development meet either of two requirements:
• For as long as the TIF district is active, at least 20% of units set aside for occupancy at households at or below 50°/u of AMI, or
• At least 40% of units set aside for households at or below 60°/u of AMI. In this case (at least as it pertains to satisfying the TIF statute), it
requires the 45 to 55 units in the proposed development meet the 60% AMI requirement.
Staff is recommending the following terms for the TIF district: 90% of the available TIF for 16 years with 50 units at 60%AMI for the life of the
district.
If the City Council is supportive of the affordable senior housing project and the terns of the TIF district, staff is recommending the following for next
steps:
• The developer will have to submit an application for the PUD (zoning) Amendment for the additional density.
• The EDA will have to approve the TIF District.
TIF Cash Flows
https://chanhassen.novusagenda.com/agendapublielCoverSheet.aspx?ltemID=2079&Mee... 10/15/2020
City of Chanhassen, MN
Senior Housing TIF Note Cashflow Analysis
Assumes $175,150 in Annual TIF Revenue generated from the Development upon stabilization
75% of Available TIF provides 125% minimum coverage threshold
Analysis of the term necessary to fill the 19-year cumulative gap at various % pledge amounts
Pledge of Available Tax Increment
Principal Amount of TIF Note (Cumulative gap)
TIF Note Interest Rate
Collection Year
Year 1
Year
Year
Year
Year 5
Year
Year 7
Year 8
Year 9
Year 10
Year11
Year12
Year13
Year 14
Year15
Year16
Year 17
Year 18
Year19
Year20
Totals:
75%
1 85%
1 90%
1 95%
2,392,440.75
2,392,440.75
2,392,440.75
2,392,440.75
0.00%
0.00%
0.00%
0.00%
Annual TIF Note Payment
27,915.75
31,637.85
33,498.90
35,359.95
�1131,362.50
148,877.50
157,635.00
166,392.50
131,362.50
148,877.50
157,635.00
166, 392.50
31,362.50
148,877.50
157,635.00
166,392.50
131,362.50
148,877.50
157,635.00
166, 392.50
'31,362.50
148,877.50
157,635.00
166, 392.50
131,362.50
148, 877.50
157,635,00
166,392,
50
,31,362.5Q%
- ,148,877.50
157,635.00
166,392.50
131,362.50
148,87 Z50
157,635.00
166, 392.50
Y31,362.
-148,877.50
157,635.00
166,392.50
131,362.50
148,877.50
157,635.00
166,392.50
31,362.
148,877.50
157,635.00
166,392.50
131.362,50
148,877.50
157,635,00
166, 392.50
_31,362.50
148,877.
_"
1- 157,635.00
166,392.50
131,362.50
148, 877.50
157.635,
00
166, 392.50
31,362.5
148,877.5
152,051.85
27,585.80
131,362.50
127,640.40
-
-
31,362.
131,362.50
-
-
--------------
-
2,392,440.75 2,392,440.75 2,392,440.75 2,392,440.75
Developer Stabilized NOI:
1,449,063.00
1,449,063.00
1,449,063.00
1,449,063.00
Add: TIF
131,362.50
148,877.50
157,635.00
166,392.50
Less: Mortgage
(1,262,800.00)
(1,262,800.00)
(1,262,800.00)
(1,262,800.00)
Debt Service Coverage:
125.2%
126.5%
127.2%
127.9%
Amount Above 125% Coverage:
1,925.50
19,440.50
28,198.00
36,955.50
The PUD governing this proposal requires parking to meet the R-12 standards. Parking plans
meet ordinance requirements. Under the R-12 parking district requirements, the applicant must
provide 2 parking spaces per unit, one and a half of which must be enclosed. Senior Housing
parking requirement may be reduced due to the low demand generated by seniors.
Bui ding
A
B
C
D
Total
Building
133,647
50,837
118,944
87,516
442,103
Area
51,159
# Of Units
100
80
88
76
344
Enclosed
136
129
124
89
478
Parking
Provided
Enclosed
150
120
132
76
478
Parking
Required
Surface parking is required at a ratio of 0.5 space per unit and 1 visitor parking per 4 units. This
translates to a total of 258 surface parking spaces which the applicant is providing.
COMPLIANCE TABLE
PUD Proiect Proposal
Hard Surface Coverage
35%
33.7%
Setback from Collector
NA
50
Setback from RSF District
NA
137 feet
Density
17.4 units
16.1 units
tl. PRELIMIN `tY APtTYENT MIX AND T RENTABLE AREAS:
10800 1BR/DE1900 28R6950 38R®1200 38R®1275
TOTALS
APT, TYPES
BLDG.-`A' FAMILY 1
` 38 26
i2
100
BLDG. "B-?" FAMILY 11
13LDG. "B-2' 7 11
8 9
/ 8 9
12
40
41I Y
"C' F>MILY/J 24
6 18 28
12
88
BLDG.
6lRG-"I2' S t
---- 43 -- =--'
---76 -
—33
TOTALS 100
9 115 72
48
344
12. PRELIMINARY FAMILY APARTMENT TYPE PERCENTAGES:
67 1BR
=25.0%
9 1BR/DEN
= 3.4%
72 2BR
=26.8%
170 ;RR
--m.44JM
268 TOTAL FAMILY APTS.
Background
In 1987, the city approved a PUD agreement for Lake Susan Hills. The PUD
permitted up to 411 single family units, created 3 outlots for medium density units
and one outlot for high density units. The single family lots have been platted in 9
additions continuously since PUD approval. One of the outlots (Outlot Q
designated for medium density units was platted in April 1993 for 24 units. The
second oudot (Outot B), also designated for medium density units was platted on
April 10, 1995 for 48 units. The third oudot (Oultot D) was platted in May of
1995 for 48 units. The fourth outlot (Outlot A), designated for high density was
platted on April 4, 2000.
Outlot A
Outlot A is designated as Multiple Family (High Density Residential). The PUD
contract states that the development shall provide a minimum of 21.5 acres of
high density multiple family residential units. The total number of dwelling units
of high density multiple family residential property shall not exceed 375, or a
density greater than 17.4 units/acre. Except as modified herein, the development
of the high density multiple family residential shall be in accordance with the
uses, standards, and requirements of the R-12 Zoning District.
1MIED
Maximum # of units
375
Density
17.4
Hard surface coverage
32%
Maximum Height
NA
R-12
NA
NA
35%
40 ft or 3 story
Proposed
343
16.12
34.6%
40 ft or 3 story