WHITE OAK PLACE. Brownfield Plan No East Grand River, Tax ID Spartan Ave, Tax ID

Transcription

1 WHITE OAK PLACE 1301 East Grand River, Tax ID East Grand River, Tax ID Spartan Ave, Tax ID East Lansing, Michigan Brownfield Plan No.21 Prepared with assistance from: ADVANCED REDEVELOPMENT SOLUTIONS PO Box 204 Eagle, Michigan Contact: Eric P. Helzer, EDFP Phone: (517) East Lansing Brownfield Redevelopment Authority 410 Abbott Road East Lansing, Michigan Contact: Tim Dempsey Phone: (517) Approved by the East Lansing Brownfield Redevelopment Authority TBD/TBD/2015 Approved by the East Lansing City Council TBD/TBD/2015

2 Table of Contents Project Summary Sheet: Brownfield Plan White Oak Place... 2 Introduction Description of the Eligible Property (Section 13(1)(h)) Basis of Eligibility (Section 13 (1)(h), Section 2 (m)), Section 2(r) Summary of Eligible Activities and Description of Costs (Section 13 (1)(a),(b)) Captured Taxable Value and Tax Increment Revenues (Section 13(1)(c)) Method of Brownfield Plan Financing (Section 13(1)(d)) Amount of Note or Bonded Indebtedness Incurred (Section 13(1)(e)) Duration of the Brownfield Plan AND EFFECTIVE DATE (Section 13(1)(f)) Estimated Impact on Taxing Jurisdictions (Section 13(1)(g), Section 2(ee)) Displacement of Persons (Section 13(1)(i-l)) Authority Revolving Fund (Section 8; Section 13(1)(m)) Other Information (Section 8; Section 13(1)(n)) Tables Exhibits Table 1 Eligible Activities and 13 Table 1a Itemized Eligible Activities Table 1b Summary of Eligible Activities Table 2 Captured Incremental Taxable Values & Tax Increment Revenues Captured Table 3 Impact to Taxing Jurisdictions Table 4 Tax Increment Financing Estimates... Exhibit C Table 4a - Base Year/Initial Taxable Value (ITV) Table 4b - Future Taxable Value (FTV) Table 4c - Tax Impact on Taxing Jurisdictions Table 4d - Reimbursement of Eligible Activities & Disbursements A. Legal Descriptions (per Ingham County Assessing Records) and Eligible Property Boundary Maps B. Basis of Eligibility Supportive Environmental and Non-Environmental Brownfield Information C. Table 4 Tax Increment Financing Estimates Brownfield Plan No.21 White Oak Place, East Lansing Page 1

3 PROJECT SUMMARY SHEET: BROWNFIELD PLAN NO.21 WHITE OAK PLACE Project Name: White Oak Place Applicant/Developer: Entity Name: Next Generation Investment Properties, LLC Contact: Joe Goodsir Mailing Address: 251 W. Grand River Ave., East Lansing, MI Phone: (517) Eligible Property Location: The eligible property ( Property ) consists of three (3) parcels located at: 1301 East Grand River, Tax ID ; 1307 East Grand River, Tax ID ; Spartan Ave, Tax ID East Lansing, Michigan Property Size: Type of Eligible Property: Project Description: Approximately 1.08 acres (0.26 acres {-009} acres {-010} acres {-008}) Facility (Contaminated) White Oak Place Project This Brownfield Plan (the Plan ) anticipates significant future investments by Next Generation Investment Properties, LLC, an East Lansing-based developer that primarily manages and builds residential and rental housing. This Plan contemplates redevelopment upon all three (3) Eligible Properties East Grand River (Tax ID ) and 1307 East Grand River (Tax ID ) have been vacant for nearly 3 years and are blighted, underutilized and contaminated property. White Oak Place is a mixed-use redevelopment project with apartments and retail space which will create a dense urban redevelopment while preserving the approximate 265 year-old White Oak tree and creating a substantial green courtyard. The project will occur on a 1.08 acre site east of Spartan Avenue and north of East Grand River Avenue. The applicant proposes to raze the existing buildings on all three eligible properties and construct a mixed-use 6- story building which includes one level of underground parking, parking and commercial use on the first floor, five-floors of residential use above. Project building area consists of 140,175 gross square feet (GSF) containing 29,634 GSF of underground parking, 3,457 GSF retail/commercial space, and 107,084 GSF multifamily residential. Total of 69 apartment units ranging between one and four bedrooms (213 total beds) all housed in a very prominent location on East Grand River Avenue across from MSU. The estimated $19.7 million project (not including land, contingency or interest) is being built with the intention of serving a mixed market of people, including graduate students and young professionals, who desire to live in the downtown and near the Michigan State University ( MSU ) campus. It is expected this new facility will attract more Brownfield Plan No.21 White Oak Place, East Lansing Page 2

4 people to the area, some of which will have a desire to live in a building such as that proposed in this project. Added project features include exterior balconies, landscaped open area surrounding the large White Oak on the Property, art work display, and extensive bike parking. Construction is scheduled to begin in the early spring 2016, with occupancy available by August However, environmental contamination and increased costs threaten the redevelopment planned. The project is seeking tax increment financing through the Brownfield Redevelopment Financing Act (Public Act 381 of 1996), which is the subject of this Plan, to allow for a successful redevelopment and environmental cleanup at this site. Estimated Job Creation: Once complete, up to 10 immediate new full time jobs will be created. Estimated Gain in Taxes: (after Project completion) Current Taxable Value Future Taxable Value Increased/ Captured Taxable Value (2015) (2018) (2018) $428,880 $7,528,846 $7,099,966 Annual Taxes Paid $33,669 $591,042 $557,373 Duration of Plan: 20 years (2036) Total estimated Plan duration with tax capture for reimbursement of Eligible Activities, Brownfield Plan & Work Plan Preparation, contingency and interest, ELBRA Administrative Fees, and State Brownfield Revolving Fund. Brownfield Plan No.21 White Oak Place, East Lansing Page 3

5 Gain in Taxes Breakdown: (Total Plan Duration) Gain In Taxes Breakdown Total Taxes Paid During Brownfield Plan Tax Capture Period Notes Capture Period in Years Total/ Cumulative Annual Average $ 13,055,238 $ 652,762 Total New Tax Revenue Received by each Taxing Unit/ Entity CITY OF EAST LANSING Percentage of Pass-Through/ Sharing Total/ Cumulative Annual Average Operating 10% $ 292,509 $ 14,625 Solid Waste/Recycling 10% $ 30,350 $ 1,517 Library 10% $ 33,260 $ 1,663 Downtown Development Authority - DDA 100% $ 288,017 $ 14,401 City Debt 100% $ 214,030 $ 10,701 Subtotal to Above - $ 858,165 $ 42,908 INGHAM COUNTY 10.00% $ 175,054 $ 8,753 Capital Area Transportation Authority - CATA 10.00% $ 50,007 $ 2,500 INTERMEDIATE SCHOOL DISTRICTS (ISD) 10.00% $ 99,583 $ 4,979 Lansing Community College - LCC 10.00% $ 63,314 $ 3,166 Subtotal to Above - $ 387,957 $ 19,398 LOCAL SCHOOL MILLAGES: excludes State School millages - $ - - East Lansing School Debt % $ 907,339 $ 45,367 East Lansing School Building and Site ("Sinking Fund" millage available for tax capture) 10.00% $ 21,386 $ 1,069 Subtotal to Above - $ 928,725 $ 46,436 Additional Taxes to All of the Above from Local Millages on a Prorata basis (excluding any Taxing Unit levying a millage not allowed for tax capture) - $ 816,582 $ - STATE SCHOOL MILLAGES: excludes Local School millages Subtotal of All of the Above - $ 2,991,430 $ - State Education Tax - SET 10.00% $ 99,781 $ 4,989 Local School Operating - LSO: 18 mills for Real Property; only 6 mills for Personal Property 10.00% $ 299,342 $ 14,967 Subtotal to Above - $ 399,123 $ 19,956 Additional Taxes from State School Millages to Above on a Prorata basis - $ 139,706 $ - GRAND TOTAL OF NEW TAX REVENUE TO THE ABOVE - $ 3,530,259 - Brownfield Plan No.21 White Oak Place, East Lansing Page 4

6 Total Taxes Captured: (Total Plan Duration) Total Taxes Captured During Brownfield Plan Tax Capture Period Total/ Cumulative Annual Average Brownfield Redevelopment Authority (BRA) Administration BRA Local Site Remediation Revolving Fund (LSRRF) State of Michigan Brownfield Redevelopment Fund (MBRF) Local Taxes To Developer (Reimburse Eligible Activities) State School Taxes To Developer (Reimburse Eligible Activities) $ 300,000 $ 15,000 $ - $ - $ 449,013 $ 22,451 $ 5,772,580 $ 288,629 $ 3,003,385 $ 150,169 Total New Tax Capture (See Table 1a) $ 9,524,979 $ 476,249 Distribution of Total New Taxes Paid: (Total Plan Duration) Total New Taxes Received by Taxing Units $ 3,530,259 Total New Taxes Captured $ 9,524,979 Total New Taxes $ 13,055,238 Eligible Activities and Eligible Costs: Eligible Activities Eligible Costs Baseline Environmental Assessment (BEA) Activities $ 56,700 Due Care Activities $ 1,191,168 Additional Response Activities $ 862,890 Demolition Activities $ 126,900 Lead and Asbestos Abatement Activities $ 25,300 Infrastructure Improvements Activities (Private) $ 2,593,250 Infrastructure Improvements Activities (Public) - In Public ROW/Easements $ 170,163 Site Preparation Activities $ 228,725 Contingency (15%) $ 788,264 Interest (5%) $ 2,690,107 Subtotal $ 8,733,466 Brownfield Plan & Work Plan Preparation $ 42,500 Subtotal (to Developer) $ 8,775,966 ELBRA Administration $ 300,000 State of Michigan Brownfield Redevelopment Fund $ 449,013 Grand Total* $ 9,524,979 *No Local Site Remediation Revolving Fund ( LSRRF ) deposits will be made with this Plan. Brownfield Plan No.21 White Oak Place, East Lansing Page 5