Item 1A: Mueller Financial Update — original pdf

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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 Yes / Developer $327 million $60 million No 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 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 (2020) Annual Debt Service on this outstanding Debt is $4.6 million • Current (2020) Annual TIF Revenue is $9.2 million Credit Factors • Continued strong assessed valuation growth • Sales tax continuing to perform well 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 7 QUESTIONS? Sylnovia Holt-Rabb, Acting Director Economic Development Department City Hall - 301 W. 2nd Street, Suite 2030 THANK YOU