Resolution No. 5086 - Laserfiche WebLink

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• Location. The project is located in the Downtown Plan Area. • Parkin . The project is not located in a RPP zone. Longevily of Public Benefits. All • the public benefits listed above will extend beyond the period • the tax exemption. 2.5.3 Points Awarded. The applicant has been awarded 290 public benefit points. 2.6 Other Benefits Provided • the Project. Based • the comments heard at council work sessions, a number of issues or possible concerns emerged. Below are the relevant issues and Core Campus's responses, which provide additional benefits. 2.6.1 Payment in Lieu of Affordable Housing. Core Campus proposes to make payments to the City of $1,030,000 during years six through ten. The payments would be guaranteed and paid regardless of the financial performance of the project. The average cash on cash return for the 10- year period with the MUPTE and the additional payments from Core Campus is estimated at 9,66%. Continuation of the MUPTE would be conditioned on each of the guaranteed payments in the later years being paid. The project would immediately stop receiving the MUPTE if Core Campus failed to make a guaranteed payment. For example, should Core Campus fail to make the proposed $30k year six payment, Core Campus would not receive the tax exemption that year and would instead pay property taxes on the improved value to the site (estimated tax of $520,600). Not paying property taxes would trigger default with the lender, which is a strong guarantee in itself that Core Campus would make the payments. Additionally, the guaranteed payments would survive should the property change hands; the new owner would be required to either make the payments in order to keep the MUPTE benefit active or, alternatively, begin payment of full property taxes. In years 6-10 of the tax exempt period, in addition to any other fees, taxes or charges owed to the City, the owner of the property shall make the following payments to the City by July 15 of each year: 1 t11 Page 2 of 4 Resolution EXHIBIT A- Report and Recommendation