Robert Mueller Municipal Airport Plan Implementation Advisory Commission - Nov. 9, 2021
Robert Mueller Municipal Airport Plan Implementation Advisory Commission Regular Meeting of the Robert Mueller Municipal Airport Plan Implementation Advisory Commission - Meeting will be held at the Austin Energy Headquarters at 4815 Mueller Boulevard, Austin, Texas 78723
Regular Meeting ROBERT MUELLER MUNICIPAL AIRPORT PLAN IMPLEMENTATION ADVISORY COMMISSION 6:00 p.m. — 7:30 p.m. Tuesday, November 9th, 2021 Austin Energy Headquarters 4815 Mueller Blvd, Austin, TX 78723 CALL TO ORDER CITIZEN COMMUNICATION: GENERAL Speakers signed up prior to the meeting being called to order will each be allowed three minutes to address the Commission regarding items not posted on the agenda. AGENDA Estimate 6:00 6:05 6:25 7:10 7:25 7:25 7:30 7:30 a. Approve minutes from the 10/12/21 Commission meeting (Discussion and Action) FUTURE AGENDA ITEMS (Staff/Commission) NEXT MEETING: January 11th, 2022 (Regular Meeting) ADJOURNMENT 1. BRIEFINGS 2. NEW BUSINESS a. Mueller Financial Update (Staff) b. Mueller Development Update (Catellus) 3. APPROVAL OF MINUTES a. Affordable Housing Update (Mueller Foundation/Community Wheelhouse) The City of Austin is committed to compliance with the American with Disabilities Act. Reasonable modifications and equal access to communications will be provided upon request. Meeting locations are planned with wheelchair access. If requiring Sign Language Interpreters or alternative formats, please give notice at least 2 days (48 hours) before the meeting date. Please call Matthew Schmidt with the Economic Development Department, at 512-974-6415, for additional information; TTY users route through Relay Texas at 711. For more information on the Robert Mueller Municipal Airport Plan Implementation Advisory Commission, please contact Matthew Schmidt with Economic Development at 512-974-6415.
UPDATE ON MUELLER FINANCING RMMA PLAN IMPLEMENTATION ADVISORY COMMISSION NOVEMBER 9, 2021 Mueller Implementation Strategy • Public-private partnership • City holds the land; master developer takes down land gradually, then sells to third parties • Master developer designs, builds and funds all infrastructure & parks • Reimbursed by land sale proceeds and public financing (sales and property tax) • Developer retains responsibility for overall implementation of vision & goals, with City oversight C I T Y O F A U S T I N R E D E V E L O P M E N T RMMA PIAC NOVEMBER 9, 2021 2 Financing Model for Mueller City holds land and gradually sells to Catellus Catellus builds streets, utilities, parks, and other infrastructure Catellus sells land to developers Reimbursements Mueller Project Revenue Fund Mueller Tax Increment Financing New Commercial and Residential development Property Taxes C I T Y O F A U S T I N R E D E V E L O P M E N T RMMA PIAC NOVEMBER 9, 2021 3 Mueller FY 2021 Development • Over 2.6 M square feet Commercial, Institutional & Civic development completed • with another 500,000 square feet under construction • 4,073 Single and Multi- Family Units completed, delivering more than 25% affordable • with close to 1,000 additional units under construction C I T Y O F A U S T I N R E D E V E L O P M E N T RMMA PIAC NOVEMBER 9, 2021 4 Project Finance Plan Recap • Approximately $265 Million in project costs • $185 million land sales • $65 million in public financing • $50 million in debt from the TIF • $15 million in Sales Tax • $15 million in other revenue • City’s risk is minimized • Relies on project revenue to support project costs • Catellus provides interim funding for project costs C I T Y O F A U S T I N R E D E V E L O P M E N T RMMA PIAC NOVEMBER 9, 2021 5 Mueller TIF Recap Base Year TIF Duration Base Assessed Value (AV) Current AV (Tax Yr 2020) COA Capture % Other Entity Participation Other Participation Current Project Cost Estimated Project Cost to be covered by TIF Debt O&M to be covered by TIF Mueller (TIF #16) Through 2032 $1.8 billion 2004 $0 100% n/a …
Mueller Development Mueller Redevelopment Muell RMMA Plan Implementation Advisory Commission Affordable Housing Update November 9, 2021 Housing Goal Vision Mueller will be an interactive, mixed-use, mixed- income community that will be a model for responsible urban development, offering a compact pedestrian-oriented alternative to the land- consumptive and automobile-dependent development patterns that could influence the form and pattern of growth within Austin. Goal Redevelopment must offer a wide range of housing choices in order to create a new community of socially and economically diverse residents. 2 | RMMA PIAC November 2021 Overall Approach & Roles Initial Program Design & Strategy • • City of Austin & Catellus Frances Ferguson & consultants Development Implementation • • • • Catellus/AH Builders – product & pricing PIAC/CDC – community oversight Catellus/AH Builders/Program Admin – marketing & outreach City of Austin – affordable housing funding to support tax credit projects Long Term Strategy & Implementation • Mueller Foundation – nonprofit governing body • Mueller Foundation/Program Administrator – resale program • Program Administrator – operations and management Affordability Stewardship • • • Program Administrator – education and credit counseling Lenders/Program Administrator – screening buyers City of Austin/Program Administrator – monitoring compliance 3 | RMMA PIAC November 2021 Affordable Housing Plan & Requirements • Located on city-owned land • City selected Catellus as the master developer • Master Development Agreement (MDA) regulates the redevelopment • MDA requires 25% affordable housing: o For sale requirement = 80% MFI o For rent requirement = 60% MFI • Mueller is a certified S.M.A.R.T. Housing development • Catellus is delivering on commitment to go above and beyond 4 | RMMA PIAC November 2021 Affordable Housing Above and Beyond • Longer-term affordability beyond one year using fixed-appreciation model • Added some new and resale workforce housing at 120% MFI • Self-sustaining model to monitor and enforce compliance with affordability restrictions and provide post-ownership support, i.e., “stewardship” • Market-rate rental properties have a minimum of 10% affordable units, with the majority delivering 15% affordable units • Long-term affordability from 40 to 99 years for all rental developments • Predominantly affordable rental developments have reached deeper affordability: some units serve 30-50% MFI or below • Affordable homes integrated throughout the master development Austin Habitat for Humanity row homes 5 | RMMA PIAC November 2021 MFI Level: New Homes, Apartments Median Family Income MDA Requirement Current MFI For Sale For Rent Requirement <= 80% MFI …
