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Director Sylvester clarified that the baseline/current property tax value would be maintained. The developer would continue to pay the existingproperty tax, which protects the schools. Director Sylvester remarked that this strategy could potentially be applied to the proposed new housing at One Lakewood Place and the two Solove developments. He walked through an example of the financing and how the program could work at the proposed Solove development at the existing Barry Buick site. Solove is proposing 140 total units. Under this program, 28 would be affordable. The Barry Buick site currently nets $71,000 in property taxes annually. This baseline tax rate would be maintained. With a $30 million development, the property tax would likely increase to about $725,400. Given the proposed investment, the value of the land will also increase. The property tax on the land will NOT be abated. All told, the City expects to net about $124,000 from the abated tax on the structure PLUS the non-abated tax on the land. Director Sylvester highlighted that this is $53,000 than what the City currently nets. He also highlighted that if the new development does not move forward that the value of the land will likely not improve and the City will net its usual $70,000. For 15 years, the developer would be saving approximately $601,400annually. Director Sylvester stated that no developer is likely to offer affordable housing without an incentive of this nature. He cited the economic climate, the risk, and the cost of materials as the reasons. The Committee expressed a strong preference that affordable units be comparable in qualityto the other units. Director Sylvester remarked on the need for a program of this nature to prevent the marketplace from “completely taking over.” He identified this as an appropriate role of government to help ensure balance in the housing stock. He pointed to other local governments that are doing this as well. He acknowledged that affordable housing exists in Lakewood but its quality is not always the best. These new projects promise to be safe, energy efficient, and healthy. The Committee discussed what might happen after 15 years to the affordable housing units. Director Sylvester spoke about Solove’s experience with “workforce housing”in Columbus and its experience complying with government regulations. He spoke about how such a plan fits in with the Community Visionand the NEO 2040 Plan. The Committee discussed how the City would enforce and administer this program. Director Sylvester explained that reports would be made to the City annually. If there are any issues of non-compliance, the City is permitted monthly check-ins. Also, it will be stipulated that the Building Department can do exterior and interior inspections on the affordable units. Director Sylvester characterized the proposal as very fair to both parties. 2