City of Gainesville - File #: 060162

• File #: 060162
• Version: 0
• Name: Gainesville Greens Revised Incentive Request (B)
• Type: Discussion Item
• Status: To Be Introduced
• File created: 6/19/2006
• In control: Community Redevelopment Agency
• Final action: 6/19/2006
• Title: Gainesville Greens Revised Incentive Request (B)

Date	Ver.	Action By	Action	Result
6/19/2006	0	Community Redevelopment Agency	Approved as Recommended	Pass

Title
Gainesville Greens Revised Incentive Request (B)

Explanation
At the May 15, 2006 CRA meeting the developer of the Gainesville Greens project requested an opportunity to address the CRA Board. The developer has experienced a number of unexpected cost increases and has needed to make several changes to the project and requested additional funding. The developer’s cost for the project has grown from $39 million to $59 million. In order to keep the project feasible, in addition to reducing his overall profit margin and raising unit pricing, the developer had, at the May 15, 2006 CRA meeting, proposed a number of options, including reducing the number of stories from 12 to 10; replacing the LEED certification with other accepted green building principles; and removing the affordable housing units. With these changes, the developer requested 80% of the increment generated by the project for 20 years. The net present value of the requested incentive in May was $5,538,451 at an 8% discount rate, with projected incentive payments totaling $12,148,550. The developer also provided three options that added the LEED certification and affordable units at higher tax increment percentages.

Following feedback from the CRA and extensive value engineering, the developer has revised his request to 75% of the increment generated by the project for 20 years, including LEEDS certification and ten affordable units, all priced at $200,000. This revised TIF incentive request equals a net present value of $6,346,186 at a 6.75% discount rate and 3% growth rate, with projected future payments totaling $12,516,171. The number of stories (10) and units (144) has remained the same as the request outlined on May 15, 2006. Since the last CRA meeting, the developer has received approval from the DRB to continue the developmental process of the project with the City. The developer has received revised construction pricing based on the approved plans, which ha...