Item B: URA - West Broadway Preliminary Financing Plan

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costs may be incorporated into the project in another fashion, such as a higher level of payment towards land assembly. Public Parking: This assumes that the City would purchase a turnkey garage from the developer. Low-Income Housing Loan: KWG has indicated that it would like a $1.3 million loan for the low-income rental housing portion of the project. There are several sources of funds that could address the $1.3 million low-income housing loan that was referenced in the KWG request for qualifications response. The sources include: 1) HOME funds; 2) System Development Charge waivers; 3) a 20 year Low Income Rental Housing Property Tax Exemption; and 4) the Downtown Revitalization Loan Program. Other City Costs: These would include a city project manager for the garage, 1% for art for the garage, city attorney costs to negotiate agreements with the developers, environmental assessments, property appraisals, and other property acquisition costs, and borrowing costs. Debt Service Reserve: The lenders will probably require funds to be held in reserve during the term of the borrowings for this project. That amount is normally equal to 10% of the amount of the borrowing, or one year of debt service. This amount is not actually expended for the project, but is held in the urban renewal funds until the debt is paid off. At that point, the reserves are available for spending on other urban renewal projects.