Item2_2022-10-17_AEDC_URB Presentation — original pdf

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AEDC Urban Renewal District Planning Urban Renewal Board 17 October 2022 1 Community Engagement AGENDA /01 /02 /03 Program Mix Pre-development Financial & Feasibility Analysis 2 Framing the Study The Austin Economic Development Corporation (AEDC) has been engaged by the Urban Renewal Agency of the City of Austin to facilitate real estate transaction support on key parcels within the Urban Renewal District. The work builds on many years of engagement and planning efforts (2012, 2019 and recent Urban Renewal Plan/NCCD alignment work). The work in the next few months, leading up to a Request for Proposals for development, is intended to be informed by prior material developed, and focusing the conversation around the implementation and market feasible options that would provide an effective road map to potential developers of the property. 3 Community Engagement 4 Community Engagement 3 Community Conversations – Sept 28-Oct 2 126 engaged (+ visitors) Community Engagement 3 Community Conversations – Sept 28-Oct 2 200+ dots! Community Engagement Predevelopment Community Meeting  Thursday November 3 4-730 PM  Friday November 4 Virtual at 12 noon This will be a presentation of preliminary diagrams to demonstrate how built form/proposed uses, and potential financing would come together on these blocks. We will discuss issues of character, urban design and other criteria to be included in the future Request for Proposals. Please email anne@austinedc.org if you would like to be notified of all meetings directly or have input to share. Community Engagement Update/Summary of Process to Urban Renewal Board  November 14, 2022  Updated Scenarios: Massing & Financial Analysis  Draft RFP Criteria All updates will be posted http://www.austinedc.org/blocks-16-18 Program Mix 9 Site Context 10 11th Street Current Program 11th Street Current Program Program Mix Scenarios are designed to test multiple variables and review prioritization of potential site components. Each scenario represents spatial variations based on a different set of imposed site constraints. Final program mix will be determined by developer, based on response to community criteria in the request for proposal. Pre-development Financial & Feasibility Analysis 14 Pre-development Financial & Feasibility Analysis 15 Pre-development Financial & Feasibility Analysis – Program Mix / Scenarios Scenario A  Residential – Townhomes  Commercial – Retail / Office Workspace / Cultural Scenario B  Residential – Workforce (50%) / Market Rate (50%)  Commercial – Retail / Cultural Scenario C  Residential – Affordable (Avg. 60% AMI)  Commercial – Retail / Cultural Cost Drivers • Parking • Programming • Construction Type • Economic Environment • Number of Affordable Units 16 Pre-development Financial & Feasibility Analysis – Transaction Structure Transaction Structure  Bundled vs. Individual Projects  Unsubordinated Ground-lease  Partnership / Participation  Tax-Exemption  Land Contribution / Acquisition Costs Sources of Capital • Debt & Equity Financing • Construction & Permanent Loans • Subsidies (LIHTC, NMTC, etc.) • Additional Sources (Grants, Local Funding, Forgivable Loans, etc.) • Developer Contributions 17 Pre-development Financial & Feasibility Analysis – Valuation Approach Valuation Approach (Developer’s Perspective)  Expected Yields / Returns  Revenue & Operating Expense Assumptions  Income Capitalization vs. Discounted Cashflow Methods Feasibility Analysis • Total Development Costs • Operations • Lender Assumptions • Value / Gap 18 Future Outcomes The final program will be co-developed with the selected developer consistent with the stated RFQ/P requirements and priorities. 19