Item No. 2 - RMMAPIAC Mueller Financial Update — original pdf

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Update on Mueller Financing to the Robert Mueller Municipal Airport Plan Advisory Commission Kimberly Olivares │ Director, Financial Services Department 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 Robert Mueller Municipal Airport Plan Implementation Advisory Commission │March 11, 2025 Financing Model for Mueller City holds land and gradually sells to developer Catellus builds streets, utilities, parks, and other infrastructure Catellus sells land to vertical developers New Commercial and Residential development Reimbursements Mueller Project Revenue Fund Mueller Tax Increment Financing Property Taxes Robert Mueller Municipal Airport Plan Implementation Advisory Commission │March 11, 2025 Mueller Current Development • Over 3.5 M square feet Commercial, Institutional & Civic development completed • Including over 680,000 SF of retail • Over 5,000 Single and Multi-Family Units completed • Including 1,411 affordable units Robert Mueller Municipal Airport Plan Implementation Advisory Commission │March 11, 2025 Initial Project Finance Plan • 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 • Reimbursed by land sale proceeds and public financing (sales and property tax) • City’s risk is minimized • Relies on project revenue to support project costs • Catellus provides interim funding for project costs Robert Mueller Municipal Airport Plan Implementation Advisory Commission │March 11, 2025 Mueller TIF Recap Base Year TIF Duration Base Assessed Value (AV) Current AV (Tax Yr 2024) COA Capture % Other Entity Participation Other Participation Current Project Cost Estimated Project Cost to be covered by TIF Debt Mueller (TIF #16) Through 2032 $2.6 billion 2004 $0 100% n/a Yes / Developer $355 million $60 million Robert Mueller Municipal Airport Plan Implementation Advisory Commission │March 11, 2025 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 (2024) annual TIF debt service is approximately $ 5.0 million • Current (2024) annual TIF revenue is estimated to be $12.5 million • Credit Factors • City property tax revenues continue to be strong • Sales tax revenues have decreased slightly over the last year Robert Mueller Municipal Airport Plan Implementation Advisory Commission │March 11, 2025 Questions? Kimberly Olivares, Director Financial Services Department