Item 2A: Mueller Financial Update — original pdf

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Update on Mueller Financing RMMA Plan Implementation Advisory Commission Sylnovia Holt-Rabb, Acting Director Economic Development Department October 16, 2020 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 0 2 0 2 / 6 1 / 0 1 I C A P A M M R 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 0 2 0 2 / 6 1 / 0 1 I C A P A M M R 3 New Commercial and Residential development Property Taxes Mueller 2020 Construction • Current construction contracts: $670M​ • Construction- related jobs: 3,685​ • ​Affordable homes/lots under construction: 259* (*including Habitat for Humanity row homes​) 0 2 0 2 / 6 1 / 0 1 I C A P A M M R 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 0 2 0 2 / 6 1 / 0 1 I C A P A M M R 5 TIF Recap Base Year TIF Duration Base Assessed Value (AV) Current AV (Tax Yr 2019) 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 $1.7 billion 2004 $0 100% n/a Yes / Developer $326 million $60 million No 0 2 0 2 / 6 1 / 0 1 I C A P A M M R 6 Mueller Debt Summary Year 2007 2009 2012 2014 Type Sales Tax Amount $12.0 million TIF (Property Tax) $15.0 million TIF (Property Tax) $16.8 million TIF (Property Tax) $15.8 million TOTAL $59.6 million • Current (2019) Annual Debt Service on this outstanding Debt is $4.6 million • Current (2019) Annual TIF Revenue is $7.2 million Credit Factors • Strong assessed valuation growth over last 5 years • Sales tax performing well 0 2 0 2 / 6 1 / 0 1 I C A P A M M R 7 Questions / Discussion 0 2 0 2 / 6 1 / 0 1 I C A P A M M R 88