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11/18/2019 <br />LocalTaxGeneration:BarryBuick <br />ProjectExample:BarryBuick <br />•CurrentAnnualRealEstateTaxesonBarryBuickSite$71,000Α <br />•$30Mestimatedconstructioncost(iftheprojectwasconstructed) <br />thiswouldbethebaseline <br />•Landvaluecurrentlyat$8/squarefoot.$12/squarefootislikelyafterdevelopmentiscomplete <br />•Estimatedrealestatetaxeswithabatement <br />•$12/squarefootx108,900squarefeet(sizeofallBarryproperty)=$1,306,800landvalue <br />•15yearsat100%abatementonimprovementsonly <br />•$1,306,800x4.03%=$53,000taxesgeneratedfromlandvalue <br />•Estimatedtaxbillwithlandatthemarkettaxrateplusthe <br />+$71K=$124Ktaxesgeneratedwithabatement <br />•$53K <br />baselinetaxesremainingis$123,664orroughly <br />•Onemethodtoestimatetaxablevalue: <br />$50,000/acre <br />•60%x$30M=$18M <br />•$18Mx4.03%=$725,400annualpropertytaxes•Estimatedannualincometaxes:$91K <br />•$725,400$124K=$601,400unrealizedfuturetaxgeneration <br />•Averageof$65Kperhouseholdx140units=$9.1Mx1%tax <br />•$601,400/28unitsincomecapped=$21,478/unitannualinvestmentthroughunrealized <br />rate=$91K <br />futuretaxestohavedirectcontrolandpositiveimpactoncreatingaffordablehousingunits <br />OthercomponentsofthemodificationtotheCRA <br />ProposedProjectsCouldIntroduce100NewAffordable <br />UnitsCitywide* <br />•Nomorethan50%ofthequalifyingunitscanbeefficiencies <br />•OneLakewoodPlacewouldintroduce40newaffordableunits <br />•Rentincludesthecostsofutilities <br />•200UnitsTotal:20unitsrentedtohouseholdsmaking80%AMIand20 <br />•Designiscomparabletothemarketrateunits <br />unitsrentedhouseholdsmakingbetween80%120%AMI <br />•Commercialspacedoesnotqualifyforabatementandistaxedatmarketrate <br />•BarryBuickwouldintroduce28newaffordableunits <br />•140UnitsTotal:14unitsrentedtohouseholdsmaking80%AMIand14 <br />•Createshighqualityhousingunitsforhouseholdsmaking80%120%AMI <br />unitsrentedhouseholdsmakingbetween80%120%AMI <br />•Spitzerwouldintroduce32newaffordableunits <br />•160UnitsTotal:16unitsrentedtohouseholdsmaking80%AMIand16 <br />unitsrentedhouseholdsmakingbetween80%120%AMI <br />•AffordabilityPeriod:15years <br />•Helptointroducenewmarketrateunitswhichwillhaveapositiveimpacton <br />supplyinthemarketplacetomeetdemand,andcanhelptoprotectrentsin <br />otherareasofthecity <br />*Itisanoption,notamandate,fordeveloperstoutilize. <br />4 <br /> <br />