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HomeMy WebLinkAboutResolutions - 2024.07.18 - 41349 AGENDA ITEM: Beacon Square Brownfield Plan located at 101 Mechanic Street in the City of Pontiac DEPARTMENT: Economic Development - Business Development MEETING: Board of Commissioners DATE: Thursday, July 18, 2024 6:00 PM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2024-4278 Motion to adopt the Brownfield Redevelopment Plan to be carried out within the City of Pontiac, relating to the Beacon Square redevelopment. ITEM CATEGORY SPONSORED BY Brownfield/TIF Yolanda Smith Charles INTRODUCTION AND BACKGROUND The Project contemplated at the property consists of the qualified rehabilitation of the existing Beacon Square Apartments. The rehabilitation will not alter the existing building footprint, but will include exterior repairs and landscaping, installation of new roofs and windows, interior installation of security systems, flooring, doors, trim, lighting, appliances, cabinets and countertops, toilets and bathtubs, mechanical system and HVAC, as well as upgrades to the elevator. Project work will include the following building amenities: community room, elevator, on-site management, and common outdoor space. The project will set aside Permanent Supportive Housing (PSH) units preferenced for households with the highest vulnerabilities (i.e. experiencing literal homelessness), some of which will have Project Based Vouchers from the Pontiac Housing Commission targeting HOME ARP-qualifying populations serving households earning 30%-60% area median income (AMI). This Project would provide many public benefits serving a public purpose for the City of Pontiac and the County, including: • Abatement of asbestos containing materials (ACM) and lead based paint (LBP), installation of a radon system, and contaminated soil management to address any due care exposure pathways; • Rehabilitating an existing apartment building in a neighborhood that has had issues with blight and economic decline; • Adding to the capacity to move homeless families and individuals in the City of Pontiac out of shelters and into permanent housing; and • Adding to the capacity to provide supportive services to homeless families and individuals in the City of Pontiac. It is currently anticipated that construction will begin in the Fall of 2024 and eligible activities will be completed within 24 months thereafter. The Oakland County Board of Commissioners, pursuant to and in accordance with the provisions of the Brownfield Redevelopment Financing Act, being Act 381 of the Public Acts of the State of Michigan of 1996, as amended (the “Act”), have established a redevelopment of Brownfields Redevelopment Authority and Board known as the Oakland County Brownfield Redevelopment Authority (OCBRA) to facilitate the cleanup and redevelopment of Brownfields within Oakland County’s communities. The Beacon Sq. site in the City of Pontiac (the “Property”) is defined as a Housing Property under state statute. A Brownfield redevelopment plan (the “Plan”) has been prepared to restore the economic viability of this parcel. Pursuant to OCBRA by-laws, a local committee has been appointed, participated in discussions regarding the proposed plan and project, reviewed the plan, and recommends its approval. The City of Pontiac has reviewed the Plan, and has been provided a reasonable opportunity to express views and recommendations regarding the Plan in accordance with Sections 13 (13) of the Act, and has concurred with the provisions of the Plan. The OCBRA, pursuant to and in accordance with Section 13 of the Act, has approved a resolution (attached) adopting the Plan, and recommends the adoption of the Plan by the Oakland County Board of Commissioners to be carried out within the City of Pontiac relating to the Beacon Sq. redevelopment. The developer, Lighthouse of Oakland County, will assume Brownfield related eligible activity development costs estimated at $1,230,914 Costs include baseline environmental assessments, qualified rehabilitation, demolition activities. The cost of these eligible plan activities will be reimbursed to the developer by the OCBRA from tax capture based on the incremental difference on the taxable value of the property over a thirty (30) year period. Total tax capture consists of the following: Developer Reimbursement $1,230,914 State Revolving Fund $11,744 OCBRA Admin Fees $41,782 Total Tax Capture $1,284,440 No budget amendment is required as the budget already includes tax capture offsets. POLICY ANALYSIS This Plan includes the rehabilitation of the Beacon Square Apartments located at 101 Mechanic Street, Pontiac, MI in the neighborhood known as Unity Park. It includes one three-story, 28-unit, 18,293-square-foot, multi-family apartment building. The Property is 0.9 acres of land and is zoned R3 – Multiple Family Dwellings. The Beacon Square Apartments was constructed by 1931 and consists of a three-story multi-family residential building with a basement. It appears to have been occupied between approximately 1931 through present. The rehabilitation will not alter the existing building footprint, but will include exterior repairs and landscaping, installation of new roofs and windows, interior installations of security systems, flooring, doors, trim, lighting, appliances, cabinets and countertops, toilets and bathtubs, mechanical system and HVAC, as well as upgrades to the elevator. Project work will include the following building amenities: community room, elevator, on-site management, and common outdoor space. The project will set aside Permanent Supportive Housing (PSH) units preferenced for households with the highest vulnerabilities (i.e. experiencing literal homelessness), some of which will have Project Based Vouchers from the Pontiac Housing Commission targeting HOME ARP-qualifying populations serving households earning 30%-60% area median income (AMI). It is currently anticipated that construction will begin in the Fall of 2024 and eligible activities will be completed within 24 months thereafter. It is estimated that there will be 15 temporary construction jobs created as a result of this development and at least 2 FTE property management, maintenance, and supportive services jobs created. Lighthouse is the sole sponsor/developer and formed Beacon Place Limited Dividend Housing Association, LLC to purchase the property and operate it. Therefore, Beacon Place Limited Dividend Housing Association LLC is considered the project developer. Lighthouse was established in 2019 when Lighthouse of Oakland County and South Oakland Shelter (LOC) combined forces and merged agencies. As part of the financing for the development, the development partners are seeking Low Income Housing Tax Credits (LIHTC) and Vouchers to serve the residents of the City of Pontiac. BUDGET AMENDMENT REQUIRED: No Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at 248.425.5572 or andrewsmb@oakgov.com or the department contact persons listed for additional information. CONTACT Bradley Hansen, Business Development Representative Senior ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 7/19/2024 AGENDA DEADLINE: 07/18/2024 6:00 PM ATTACHMENTS 1. EDI Packet Beacon Sq. COMMITTEE TRACKING 2024-07-10 Economic Development & Infrastructure - Recommend to Board 2024-07-18 Full Board - Adopt Motioned by: Commissioner Christine Long Seconded by: Commissioner Ann Erickson Gault Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman, Ann Erickson Gault, Linnie Taylor (19) No: None (0) Abstain: None (0) Absent: (0) Passed 1 OAKLAND COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN FOR THE BEACON SQUARE APARTMENTS REDEVELOPMENT PROJECT Prepared by: Lighthouse 46156 Woodward Avenue Pontiac, MI 48342 Phone: 810-225-2800 todd@lighthousemi.org Jamieson Development Consulting 4495 Lynne Lane Contact Person: Anne Jamieson-Urena Phone:248-762-8701 anne@jamiesondevelop.com April 17, 2024 2 OAKLAND COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN TABLE OF CONTENTS I. INTRODUCTION I-1 II. GENERAL PROVISIONS A. Description of Eligible Property II-2 B. Basis of Eligibility II-4 C. Summary of Eligible Activities II-6 D. Estimate of Captured Taxable Value and Tax II-8 Increment Revenues, Impact of Tax Increment Financing on Taxing Jurisdictions E. Plan of Financing; Maximum Amount II-9 Of Indebtedness F. Duration of Plan II-10 G. Effective Date of Inclusion II-11 H. Displacement/Relocation of Individuals II-11 On Eligible Property I. Local Brownfield Revolving Fund (LBRF) II-11 J. Brownfield Redevelopment Fund II-11 K. Other Material that the Authority or Governing Body II-12 Considers Pertinent and Developer’s Obligations, Representations and Warrants III. ATTACHMENTS A. Site Maps A-14 B. Legal Description(s) B-18 C. Project Description C-19 3 D. Estimated Cost of Eligible Activities E-20 E. TIF Tables F-22 1 I. INTRODUCTION In order to promote the revitalization of environmentally distressed and blighted areas within the boundaries of Oakland County, Michigan (the “County”), the County has established the Oakland County Brownfield Redevelopment Authority (the “OCBRA”) pursuant to Michigan Public Act 381 of 1996, as amended (“Act 381”). The primary purpose of this Brownfield Plan (“Plan”) is to promote the redevelopment of and private investment in certain “brownfield” properties within the City of Pontiac and the County. Inclusion of property within this Plan will facilitate financing of environmental response and other eligible activities at eligible properties and will also provide tax incentives to eligible taxpayers willing to invest in revitalization of eligible sites, commonly referred to as “brownfields.” By facilitating redevelopment of brownfield properties, this Plan is intended to promote economic growth for the benefit of the residents of the City of Pontiac and the County and all taxing units located within and benefited by the OCBRA. This Plan is intended to apply to the eligible property identified in this Plan and, if tax increment revenues are proposed to be captured from that eligible property, to identify and authorize the eligible activities to be funded by such tax increment revenues. This Plan is intended to be a living document, which may be modified or amended in accordance with the requirements of Act 381, as necessary to achieve the purposes of Act 381. A subsequent change to the identification or designation of developer after the approval of this Plan by the governing body (as defined in Act 381) shall not necessitate an amendment to this Plan, affect the application of this Plan to the eligible property or impair the rights available to the OCBRA under this Plan. The applicable sections of Act 381 are noted throughout the Plan for reference purposes. This Plan describes the project to be completed (see Attachment C) and contains all of the information required by Section 13(2) of Act 381. Exhibit A Beacon Square Apartments Brownfield Redevelopment Plan 2 II. GENERAL PROVISIONS A. Description of the Eligible Property (Section 13 (2)(h)) and the Project The property comprising the eligible property consists of one parcel, 101 Mechanic Street. The parcel qualifies as a “facility” and a “housing property” in accordance with Act 381. The parcel and all tangible personal property located thereon will comprise the eligible property and is collectively referred to herein as the “Property.” Attachment A includes a site map of the Property. The Property is comprised of one parcel located in the Unity Park Neighborhood. The parcel is located at the northeastern corner of Douglas Street and Mechanic Street. It includes one three-story, 28-unit, 18,293-square- foot, multi-family apartment building. The Property is 0.9 acres of land and is zoned R3 – Multiple Family Dwellings and is located in an area of Pontiac that is characterized by residential properties to the south and west and an adjacent city park to the north and east. The Property can be accessed from Mechanic Street to the south. The multi-family apartment building, commonly known as the Beacon Square Apartments, was constructed by 1931 and consists of a three-story multi-family residential building with a basement. It appears to have been occupied between approximately 1931 through present. Parcel information is outlined below. Address 101 Mechanic Street Parcel ID 64-14-28-327-018 Owner BEACON HOUSING Legal Description T3N, R10E, SEC 28 SUBDIVISION OF OUTLOT NO. 13 PART OF LOTS 17, 18 & 19 BEG AT SWLY COR OF ‘SD’ LOT 17, TH N 87-26-20 E 217 FT, TH N 02-33-40 W 178.01 FT, TH S 87-26-20 W 232.72 FT, TH S 07-36-26 E 178.70 FT TO BEG 3-2-07 FR 005 TO 008 INCL Lighthouse is the sole sponsor/developer and formed Beacon Place Limited Dividend Housing Association, LLC to purchase the property and operate it. Therefore, Beacon Place Limited Dividend Housing Association LLC is considered the project developer (“Developer”). Lighthouse was established in 2019 when Lighthouse of Oakland County and South Oakland Shelter (LOC) combined forces and merged agencies. The development team is investing over $36 Million in the City of Pontiac for housing needs. All three (3) Projects –(Beacon Town Apartments associated with this Brownfield Plan) serve households seeking rental housing with income qualifying criteria ranging between 30%-60% Area Medium Income (AMI). As part of the financing for the development the development partners are seeking Low Income Housing Tax Credits (LIHTC) and Vouchers to serve the residents of the City of Pontiac. Exhibit A Beacon Square Apartments Brownfield Redevelopment Plan 3 There are extraordinary costs for redevelopment that include environmental due diligence, selective demolition, due care and response activities, and housing development activities cost to facilitate the redevelopment at these three properties. Act 381, PA 1996 as amended, Michigan’s Brownfield Redevelopment Financing Act, provides for the reimbursement of these extraordinary costs through the capture of increased taxes generated by additional private investment on Brownfield Eligible Property with the approval of a Brownfield Plan. Further, the reduction in rental income based on providing affordable housing for this project creates a further gap in the financial model and in addition to the environmental impacts and cost of construction for this project. As such, seeking a Brownfield Plan for the support of housing development activities not only stabilizes the proforma but serves a public purpose in the City of Pontiac by offering housing for at risk populations in the City. The Project contemplated at the Property consists of the qualified rehabilitation of the existing Beacon Square Apartments. The rehabilitation will not alter the existing building footprint, but will include exterior repairs and landscaping, installation of new roofs and windows, interior installations of security systems, flooring, doors, trim, lighting, appliances, cabinets and countertops, toilets and bathtubs, mechanical system and HVAC, as well as upgrades to the elevator. Project work will include the following building amenities: community room, elevator, on-site management, and common outdoor space. The project will set aside Permanent Supportive Housing (PSH) units preferenced for households with the highest vulnerabilities (i.e. experiencing literal homelessness), some of which will have Project Based Vouchers from the Pontiac Housing Commission targeting HOME ARP-qualifying populations serving households earning 30%-60% area median income (AMI). This Project would provide many public benefits serving a public purpose for the City of Pontiac and the County, including: • Abatement of asbestos containing materials (ACM) and lead based paint (LBP), installation of a radon system, and contaminated soil management to address any due care exposure pathways; • Rehabilitating an existing apartment building in a neighborhood that has had issues with blight and economic decline; • Adding to the capacity to move homeless families and individuals in the City of Pontiac out of shelters and into permanent housing; and • Adding to the capacity to provide supportive services to homeless families and individuals in the City of Pontiac. It is currently anticipated that construction will begin in the Fall of 2024 and eligible activities will be completed within 24 months thereafter. The project description provided herein is a summary of the proposed development at the Property at the time of the adoption of the Plan. The actual development may vary from the project description provided herein (including, without limitation, any references to square footage or number of units), without necessitating an amendment to this Plan, so long as such variations are not material and/or arise as a result of changes in market and/or financing conditions affecting the project and/or are related to the addition or immaterial removal of amenities to the Exhibit A Beacon Square Apartments Brownfield Redevelopment Plan 4 project. Any material changes, as determined by OCBRA in its sole discretion, to the project description are subject to the approval of the OCBRA staff and shall be consistent with the overall nature of the proposed development, its proposed public purpose, and the purposes of Act 381. Attachment C provides a detailed description of the project to be completed at the Property (the “Project”). B. Basis of Eligibility (Section 13 (2)(h) and Section 2 (p)) The Property is considered “eligible property” as defined by Act 381, Section 2 because (a) the Property was previously utilized multi-family residential and commercial purposes; (b) it is located within the City of Pontiac, a qualified local governmental unit under Act 381; and (c) the Property is determined to be a “facility” and a “housing property” as defined by Act 381, as amended. According to Section 2(o)(ii), housing property must be located in a community that has identified a specific housing need and has absorption data or job growth data included in the brownfield plan. The proposed project serves a public purpose in the City of Pontiac by directly addressing the housing needs identified within Pontiac Housing Commission’s Housing Improvement and Action Plan that was approved in June 2023. This includes addressing the core housing and absorption needs of: • Limited Supply of Attainable Rental Housing Pontiac lacks enough rental housing for extremely low-income [30% AMI] individuals and families (equivalent to $24,200 in annual income for a three-person household according to the 2022 U.S. Department of Housing and Urban Development low-income requirements). There is also a shortage of attainable and available rentals for low- income [80% AMI] and very low-income [50%] renter households. Additionally, the demand remains high for lower cost units among higher income renters, making it increasingly difficult for extremely low-income households, compared to other renters, to find attainable housing in the city. Based on this data, the addition of the proposed units will directly address the demand for new, affordable housing stock in the City of Pontiac. • Housing absorption data is included in the attached Rental Housing Market Feasibility Study prepared on June 13th, 2023, by Shaw Research & Consulting: o Based on MSHDA demand guidelines, overall capture rates of 26.9 percent (without Project Based Rental Assistance (PBRA) or retention of existing tenants) and 15.6 percent (including PBRA, but no retention) were calculated, demonstrating sufficient market depth for the successful development and absorption of the subject proposal. o Taking into consideration the proposed targeting structure and rental rates (including 85 PBRA units), overall positive occupancy levels throughout the PMA (at 97.9 percent), the overall characteristics of the target neighborhood, and also factoring in the success and rapid lease-up of the two most recent LIHTC properties within Pontiac (The Hamilton and Exhibit A Beacon Square Apartments Brownfield Redevelopment Plan 5 Winston Commons were both absorbed in less than three months), a continued need for additional affordable housing is evident. As such, considering the characteristics of the subject proposal, the overall absorption period to reach 93 percent occupancy is estimated at roughly five to six months (assuming PBRA is included). Considering these factors, coupled with a positive demand estimate, evidence presented within the market study suggests no market-related concerns are present, and a normal absorption period should be anticipated. Based on this data, the addition of the proposed units will directly address the demand for new, affordable housing stock in the City of Pontiac. ASTI Environmental completed a Phase I Environmental Site Assessment (ESA) for two parcels, including the Property, dated May 18, 2023, which identified the following Recognized Environmental Conditions (RECs) in connection with the Property: 1) The use of fill to return to grade former basements on the Property and 2) The presence of a drycleaner in a unit within a former structure on the Property. As a result, a Phase II ESA was conducted in December 2023 for the two parcels subject of the preceding Phase I ESA. The portion of the Phase II ESA conducted on the Property consisted of advancing 10 soil borings and installing two soil gas wells and three sub-slab soil vapor pins. Borings were advanced to a maximum depth between 8 and 24 feet below ground surface (bgs). Groundwater was not encountered during subsurface activities on the Property. Twelve soil and five soil gas samples were collected for various laboratory analysis of volatile organic compounds (VOCs), polynuclear aromatic hydrocarbons (PNAs), and/or Michigan 10 Metals (10MM) or cadmium, chromium, and lead. Analytical results revealed concentrations of contaminants below the Generic Residential Cleanup Criteria (GRCC) and EGLE Residential Volatilization to Indoor Air Pathway (VIAP) Screening Levels (SLs), except for the following: • Metals in soil variously exceeding the Drinking Water Protection (DWP), Groundwater Surface Water Interface Protection (GSIP), and Direct Contact criteria and residential VIAP SLs were identified. ECT is currently working in conjunction with EGLE to develop a Response Activity Plan (ResAP) and a Documentation of Due Care Compliance Plan (DDCC), to complete all appropriate due care compliance requirements as part of the Part 58 MSHDA-Rental Development Division Environmental Review Requirements. ASTI completed an asbestos-containing materials (ACM) inspection at the building on November 10, 2023. ASTI collected 52 bulk samples from suspect ACMs for laboratory asbestos analysis. Glaze at the south side original door transom and caulk at the south side original door were identified as ACMs. ASTI stated that these materials in their current condition represent a minimal risk of fiber release, but recommended that they be removed by a licensed abatement contractor prior to disturbance (i.e. renovation or demolition Exhibit A Beacon Square Apartments Brownfield Redevelopment Plan 6 activities). During the inspection, several materials were identified a potential ACMs; however, due to the inaccessibility of these materials, they were not sampled. These materials should be assumed to contain asbestos until they can be sampled: bathtub undercoating throughout the building, roofing, and fire doors and frames throughout stairways, community room, laundry room, and furnace room. These materials should variously be treated as Category I and II non-friable ACMs and be tested prior to disturbance and removed by a licensed abatement contractor. ASTI completed radon testing on the southern Property parcel between November 10 and 13, 2023. Testing consisted of placing a One Air-Chek Foil Bag test Kit in 100% of ground contact units, 10% of units on the upper floors and all common areas in the midrise building. A total of 13 kits were deployed, retrieved, and analyzed. Test results ranged between <0.3 and 8.0 pCi/L. Radon test results exceeded the EPA Action Level of 4.0 pCi/L by a factor of two in Unit 103. According to ASTI, additional testing is warranted in Unit 103. ASTI also stated that AARST and the EPA recommend retesting with short- term test kits immediately whenever results are 8 pCi/L or higher. Based on the results of radon testing, ASTI recommended further testing that determined that a Radon mitigation system was not necessary. ASTI conducted a lead-based paint (LBP) inspection and risk assessment at the Property between November 10 and 15, 2023. ASTI collected 872 measurements of painted surfaces, of which none were positive for LBP. Additionally, ASTI did not identify any potential paint-lead hazards. ASTI collected 214 lead dust wipe samples for laboratory analysis. Results revealed that 18 of the samples collected exceeded the State of Michigan clearance levels and HUD and EPA standards (40CFR Part 745.227). Bare soil was observed during ASTI’s risk assessment activities, therefore a composite soil sample was collected at this location. Analytical results revealed that lead concentrations in soil do not exceed HUD and EPA standards. ASTI recommended abatement options and interim control measures related to the dust-lead hazards identified within the structure, including accepted HEPA-wash-HEPA cleaning of floors, window sills, and window troughs within the building and collected clearance samples following cleaning. C. Summary of Eligible Activities and Description of Costs (Section 13 (2)(a),(b)) The “eligible activities” that are intended to be carried out at the Property pursuant to this Plan are considered “eligible activities” as defined by Section 2 of Act 381, because they include a Baseline Environmental Site Assessment Activities (“BEA”), hazardous building materials survey, LBP and ACM abatement and installation of a radon system, as necessary, due care activities, housing development activities, and the development, preparation and implementation of a brownfield plan and/or work plan. A summary of the eligible activities and the estimated cost of each eligible activity intended to be reimbursed with tax increment revenues generated and captured from the Property are shown in the table attached hereto as Attachment E. The eligible activities described in Attachment E are not exhaustive. Subject to the approval of OCBRA staff in writing, additional eligible activities may be carried out at the Property, without requiring an amendment to this Plan, so long as such eligible activities are permitted by Act 381 and Exhibit A Beacon Square Apartments Brownfield Redevelopment Plan 7 the cost of such eligible activities do not exceed the total costs stated in Table 1- Attachment E. The total estimated cost of the Eligible Activities subject to reimbursement to the developer from tax increment revenues is estimated at $472,278.00. However, total eligible activity cost totals $3 million in “Qualified Rehabilitation” under the “housing development activities”. In summary, Eligible Activities include the following: EGLE Pre-approved Eligible Activities, inclusive of BEA, Due Care, hazardous building material abatement totaling $54,814. It is likely that these activities will exceed this amount and are being covered by other gap financing as available. MSHDA Housing Development Activities, The “housing development activities” will provide for reimbursement provided to owners of rental housing units for “qualified rehabilitation”, which under Section 2(vv) is defined as “rehabilitation of existing structures that is necessary to make a housing unit suitable for sale to an income qualified purchaser household or rent to an income qualified renting household. Qualified rehabilitation also includes proposed rehabilitation that will bring the structure into conformance with minimum local building code standards for occupancy or improve the livability of the units while meeting minimum local building code standards. In this subsection, “existing structures” includes any structure designed to be used as a dwelling.” These eligible activity costs total $1,176,100. While these are considered Eligible Activities, it is unlikely that the full amount can be supported by the Tax Increment Revenue Reimbursement. The total request under this Brownfield Plan for reimbursement for the Eligible Qualified Rehabilitation Activities totals $1,230,914. However, it is likely that only a portion will be reimbursed over the 30-year period. Unless otherwise agreed to in writing by the OCBRA, all eligible activities shall commence within twenty-four (24) months after the date the governing body approves this Plan and be completed within three (3) years after execution of the Reimbursement Agreement (as that term is defined below). Any long-term monitoring or operation and maintenance activities or obligations that may be required will be performed in compliance with the terms of this Plan and any documents prepared pursuant to this Plan. The Developer desires to be reimbursed for the costs of eligible activities as described below. Some eligible activities may commence prior to the adoption of this Plan and, to the extent permitted by Act 381, the costs of such eligible activities shall be reimbursable pursuant to the Reimbursement Agreement. To the extent permitted by Act 381, tax increment revenue generated by the Property will be captured by the OCBRA and used to reimburse the cost of the eligible activities completed on the Property pursuant to the terms of a Reimbursement Agreement to be executed by the OCBRA and the Developer after approval of this Plan (the “Reimbursement Agreement”). Exhibit A Beacon Square Apartments Brownfield Redevelopment Plan 8 In the event this Plan contemplates the capture of tax increment revenue derived from “taxes levied for school operating purposes” (as defined by Section 2(vv) of Act 381 and hereinafter referred to as “School Taxes”), the Developer acknowledges and agrees that OCBRA’s obligation to reimburse the Developer for the cost of eligible activities with tax increment revenue derived from Local Taxes, or Specific Taxes that are considered Local Taxes, (as these capitalized terms are defined by Act 381) is contingent upon: (i) the Developer receiving at least the initial applicable work plan approvals by the Michigan State Housing Development Authority (“MSHDA”) and the Michigan Department of Environment, Great Lakes, and Energy (“EGLE”) as may be required pursuant to Act 381, within 270 days after this Plan is approved by the governing body; or (ii) the Developer providing the OCBRA with evidence, satisfactory to OCBRA, that the Developer has the financial means to complete the Project without the capture of, and subsequent reimbursement with, the contemplated School Taxes. The costs listed in Attachment E are estimated costs and may increase or decrease depending on the nature and extent of any environmental contamination and other unknown conditions encountered on the Property. The actual cost of those eligible activities encompassed by this Plan that will qualify for reimbursement from tax increment revenues generated from the Property and captured by the OCBRA shall be governed by the terms of the Reimbursement Agreement. No costs of eligible activities will be qualified for reimbursement except to the extent permitted in accordance with the terms and conditions of the Reimbursement Agreement and Act 381. The Reimbursement Agreement and this Plan will dictate the total cost of eligible activities subject to payment or reimbursement, provided that the total cost of eligible activities subject to payment or reimbursement under the Reimbursement Agreement shall not exceed the estimated costs set forth in Attachment D that total $1,230,914. As long as the total aggregate costs are not exceeded, line-item costs of eligible activities may be adjusted after the date this Plan is approved by the governing body, to the extent the adjustments do not violate the terms of the approved EGLE and Michigan State Housing Development Authority MSHDA work plan. Exhibit A Beacon Square Apartments Brownfield Redevelopment Plan 9 D. Estimate of Captured Taxable Value and Tax Increment Revenues (Section 13(2)(c)); Beginning Date of Capture of Tax Increment Revenues (Section (13)(2)(f); Impact of Tax Increment Financing on Taxing Jurisdictions (Section 13(2)(g)) This Plan anticipates the capture of tax increment revenues to reimburse the Developer for the costs of eligible activities under this Plan in accordance with the Reimbursement Agreement. Subject to Section 13(b)(16) of Act 381, a table of estimated tax increment revenues to be captured pursuant to this Plan is attached as Attachment E. The figures included in Attachment E are estimates and are subject to change depending on actual assessed values and changes to annual millage rates. The Eligible Activities currently exceed the available Tax Increment Revenues projected for this development, however this is subject to change based on final assessment valuation following the rehabilitation activities. In no event shall the duration of this Plan exceed thirty-five (35) years following the date of the governing body’s resolution approving this Plan, nor shall the duration of the tax capture exceed the lesser of the period authorized under subsection (5) of Section 13 of Act 381 or 30 years. Further, in no event shall the beginning date of the capture of tax increment revenues be later than five (5) years after the date of the governing body’s resolution approving this Plan or such other date authorized by Act 381. The beginning date of the capture of tax increment revenues is anticipated to be the 2026 tax year (commencing with the Summer 2026 property taxes) with the base tax year being 2024. Developer Total Estimated Tax Reimbursement 236,765$ BRA Admin Fee Tax Reimbursement 41,782$ State Brownfield Redevelopment Fund Reimbursement $ 11,744 Local Brownfield Revolving Loan Fund $ - TOTAL 290,291$ Estimated Total Years of Plan: 30 Years Developer Maximum Reimbursement Total Proportionality School & Local Taxes Local-Only Taxes Total TOTAL 100%236,765$ -$ 236,765$ State 44.51%105,390$ -$ 105,390$ Local 55.49%131,375$ -$ 131,375$ TOTAL 100%236,765$ 236,765$ MSHDA 84.47%200,000$ 200,000$ EGLE 15.53%36,765$ -$ 36,765$ Exhibit A Beacon Square Apartments Brownfield Redevelopment Plan 10 E. Plan of Financing (Section 13(2)(d)); Maximum Amount of Indebtedness (Section 13(2)(e)) The eligible activities are to be financed solely by the Developer. The OCBRA will reimburse the Developer for the cost of approved eligible activities, but only from tax increment revenues generated and captured from the Property. No advances have been or shall be made by the City of Pontiac or the OCBRA for the costs of eligible activities under this Plan. All reimbursements authorized under this Plan shall be governed by the Reimbursement Agreement. The inclusion of eligible activities and estimates of costs to be reimbursed in this Plan are intended to authorize the OCBRA to fund such reimbursements and does not obligate the OCBRA or the City to fund any reimbursement or to enter into the Reimbursement Agreement providing for the reimbursement of any costs for which tax increment revenues may be captured under this Plan, or which are permitted to be reimbursed under this Plan. The amount and source of any tax increment revenues that will be used for purposes authorized by this Plan, and the terms and conditions for such use and upon any reimbursement of the expenses permitted by this Plan, will be provided solely under the Reimbursement Agreement contemplated by this Plan. Reimbursements under the Reimbursement Agreement shall not exceed the cost of Eligible Activities permitted under this Plan. Furthermore, the Developer acknowledges and agrees that any eligible activities funded by a grant or loan that is forgiven, or for which the Developer receives a credit for, shall be ineligible for reimbursement under this Plan and shall not be included in any reimbursement requests to OCBRA by or on behalf of the Developer. However, any loans that the Developer is required to unconditionally repay shall be eligible for reimbursement under the Plan, subject to the Reimbursement Agreement. F. Duration of Plan (Section 13(2)(f)) Subject to Section 13b(16) of Act 381, the beginning date and duration of capture of tax increment revenues for the Property shall occur in accordance with the tax increment financing (TIF) table in Attachment F. In no event, however, shall this Plan extend beyond the maximum term allowed by Section 13(b)(16) of Act 381 for the duration of this Plan. Furthermore, this Plan, or any subsequent amendment thereto, may be abolished or terminated in accordance with Section 14(8) of Act 381 in the event of any of the following: a. The governing body may abolish this Plan (or any subsequent amendment thereto) when it finds that the purposes for which this Plan was established have been accomplished. b. The governing body may terminate this Plan (or any subsequent amendment thereto) if the project for which eligible activities were identified in this Plan (or any subsequent amendment thereto) fails to occur with respect to the eligible property for at least two (2) years following the date of the governing body resolution approving this Plan (or any subsequent amendment thereto), provided that the governing body first does both Exhibit A Beacon Square Apartments Brownfield Redevelopment Plan 11 of the following: (i) gives 30 days’ written notice to the Developer at its last known address by certified mail or other method that documents proof of delivery attempted; and (ii) provides the Developer with an opportunity to be heard at a public meeting. Notwithstanding anything in this subsection to the contrary, this Plan (or any subsequent amendment thereto) shall not be abolished or terminated until the principal and interest on bonds, if any, issued under Section 17 of Act 381 and all other obligations to which the tax increment revenues are pledged have been paid or funds sufficient to make the payment have been identified or segregated. G. Effective Date of Inclusion in Brownfield Plan The Property will become a part of this Plan on the date this Plan is approved by the governing body. H. Displacement/Relocation of Individuals on Eligible Property (Section 13(2)(i-l)) It is not anticipated that any tenants will be permanently relocated as a result the refinancing and rehabilitation of the Property. Tenants will be temporarily relocated due to replacing floor tile in the bathroom, which takes longer than a day. Temporary relocations will be to furnished vacant units at the Property. No temporary relocation is expected to last longer than a week. The development will bear the expense of all temporary relocation and tenants will be provided with assistance as necessary and a Relocation Plan will be provided. I. Local Brownfield Revolving Fund (“LBRF”) (Section 8; Section 13(2)(m)) The OCBRA has established a Local Brownfield Revolving Fund (LBRF). Capture for the LBRF will occur for up to five (5) years following developer reimbursement, if available. The funds deposited into the LBRF as part of this Plan will be used in accordance with the requirements of Act 381, as amended. J. Brownfield Redevelopment Fund (Section 8a; Section 13(2)(m)) The OCBRA shall pay to the Department of Treasury at least once annually an amount equal to 50% of the taxes levied under the state education tax, 1993 PA 331, MCL 211.901 to 211.906, that are captured under this Plan for up to the first twenty-five (25) years of the duration of capture of tax increment revenues for each eligible property included in this Plan. If the OCBRA pays an amount equal to 50% of the taxes levied under the state education tax, 1993 PA 331, MCL 211.901 to 211.906, on a parcel of eligible property to the Department of Treasury under Section 13b(14) of Act 381, the percentage of local taxes levied on that parcel and used to reimburse eligible activities for the Project under this Plan shall not exceed the percentage of local taxes levied on that parcel that would have been used to reimburse eligible activities for the Project under this Plan if the 50% of the taxes levied under the state education tax, 1993 PA 331, MCL 211.901 to 211.906, on that parcel were not paid to the Department of Treasury under Section 13b(14) of Act 381. Exhibit A Beacon Square Apartments Brownfield Redevelopment Plan 12 K. Other Material that the Authority or Governing Body Considers Pertinent (Section 13 (2)(m)) and Developer’s Obligations, Representations and Warrants (Section 13(2)(m)) The Oakland County Brownfield Redevelopment Authority and the Oakland County Board of Commissioners as the Governing Body, in accordance with the Act, may amend this Plan in order to fund additional eligible activities associated with the Project described herein. The Developer is currently pursuing Low Income Housing Tax Credits (LIHTC), MSHDA HOME – ARP, MSHDA Permanent Mortgage, and Oakland County Housing Trust Fund financing. The Developer shall comply with all applicable laws, ordinances, executive orders, or other regulations imposed by the City of Pontiac or any other properly constituted governmental authority with respect to the Property and shall use the Property in accordance with this Plan. The Developer, at its sole cost and expense, shall be solely responsible for and shall fully comply with all applicable federal, state, and local relocation requirements in implementing this Plan. The Developer represents and warrants that a Phase I ESA, and if appropriate, a Phase II ESA, Baseline Environmental Assessment, and due care plan, pursuant to Part 201 of Michigan’s Natural Resources and Environmental Protection Act (MCL 324.20101 et seq.), has been performed or will be performed on the Property. Except as otherwise agreed to by the OCBRA, any breach of a representation or warranty contained in this Plan shall render the Plan invalid, subject to the Developer’s reasonable opportunity to cure as described in the Reimbursement Agreement. III. ATTACHMENTS ATTACHMENT A Site Map Figure 1 Site Location Map 101 Mechanic Street, Pontiac, Michigan 48342 Source: Bing Maps Figure 2 Scaled Area Map 101 Mechanic Street, Pontiac, Michigan 48342 Source: Oakland County Property Gateway Beacon Apartments Existing Building ATTACHMENT B Legal Descriptions of Eligible Property to which the Plan Applies 14 14 9 7 P: (248) 437-5099 F: (248) 437-5222 www.zeimetwozniak.com NEW HUDSON, MICHIGAN 48165 EIMET & A S S O C I A T E SZW C i v i l E n g i n e e r s & L a n d S u r v e y o r s ZNIAK 55800 GRAND RIVER AVE., SUITE 100 MISS DIG SYSTEM, INC. 1-800-482-7171 THREE FULL WORKING DAYS BEFORE YOU DIG, CALL THE MISS DIG SYSTEM © C O P Y R I G H T 2 0 2 3 LOCATION MAP SITE LEGEND LEGAL DESCRIPTION SURVEY NOTES ATTACHMENT C Project Description PROJECT SUMMARY Project Name: Beacon Square Apartments Redevelopment Project Project Location: The Eligible Property is located at 101 Mechanic Street in the Unity Park Neighborhood in Pontiac, Oakland County, MI Parcel information is outlined below. Address 101 Mechanic Street Parcel ID 64-14-28-327-018 Owner BEACON HOUSING Legal Description T3N, R10E, SEC 28 SUBDIVISION OF OUTLOT NO. 13 PART OF LOTS 17, 18 & 19 BEG AT SWLY COR OF ‘SD’ LOT 17, TH N 87-26-20 E 217 FT, TH N 02-33-40 W 178.01 FT, TH S 87-26-20 W 232.72 FT, TH S 07-36-26 E 178.70 FT TO BEG 3-2-07 FR 005 TO 008 INCL Type of Eligible Property: “Housing Property” and a “Facility” Total Project Investment: ~$3,400,000 including land acquisition Eligible Activities: Baseline Environmental Site Assessment Activities (BEA), Due Care Activities, Hazardous Building Material Survey, Asbestos and Lead Abatement, Housing Development Activities – and preparation and implementation of a Brownfield Plan and Act 381 Work Plan. Reimbursable Costs: $1,230,914 (Estimated Eligible Activities – it is not anticipated that this amount will be reimbursed but is a placeholder $41,782 (Estimated BRA Administrative Fees) $11,744 (Estimated State Revolving Loan Fund) $0 (Estimated LBRF to BRA) * can be modified to add 5 years of capture following the reimbursement of Eligible Activities provided that the 35 years is not exceeded in the Brownfield Plan Total: $1,284,440 Years to Complete Payback: 30 Years Base TV/New ITV Estimate: $244,750/$315,440 Job Creation: There will be 15 temporary construction jobs created as a result of this development and at least 2 FTE property management, maintenance, and supportive services jobs created. Project Timeline: Following approval of the supporting incentives that are anticipated to include an Brownfield TIF for the project it is expected that the eligible activities will begin in the Fall of 2024 with a completion date of Fall 2026. Project Overview: The Property consists of one parcel located in the Unity Park Neighborhood. The subject property is 0.9 acres of land that includes one three-story, 28-unit, 18,293-square-foot, multi-family apartment building. The Property is zoned R3 – Multiple Family Dwellings and is located in an area of Pontiac that is characterized by residential and City park properties. The building identified as the Beacon Square Apartments was constructed by 1931 and consists of a three-story multi-family residential building with a basement. It appears to have been occupied between approximately 1931 through present. Lighthouse is the sole sponsor/developer and formed Beacon Place Limited Dividend Housing Association, LLC to purchase the property and operate it. Therefore, Beacon Place Limited Dividend Housing Association LLC is considered the project developer (“Developer”). The project contemplated at the Property consists of the rehabilitation of the existing Beacon Square Apartments. The “housing development activities” will provide for reimbursement provided to owners of rental housing units for “qualified rehabilitation”, which under Section 2(vv) is defined as “rehabilitation of existing structures that is necessary to make a housing unit suitable for sale to an income qualified purchaser household or rent to an income qualified renting household. Qualified rehabilitation also includes proposed rehabilitation that will bring the structure into conformance with minimum local building code standards for occupancy or improve the livability of the units while meeting minimum local building code standards. In this subsection, “existing structures” includes any structure designed to be used as a dwelling.” The rehabilitation will not alter the existing building footprint, but will include exterior repairs and landscaping, installation of new roofs and windows, interior installations of security systems, flooring, doors, trim, lighting, appliances, cabinets and countertops, toilets and bathtubs, mechanical system and HVAC, as well as upgrades to the elevator. Project work will include the following building amenities: community room, elevator, on-site management, and common outdoor space. The project will set aside Permanent Supportive Housing (PSH) units preferenced for households with the highest vulnerabilities (i.e. experiencing literal homelessness), some of which will have Project Based Vouchers from the Pontiac Housing Commission targeting HOME ARP- qualifying populations serving households earning 30%-60% area median income (AMI). It is currently anticipated that construction will begin in the Fall of 2024 and eligible activities will be completed within 24 months thereafter. ATTACHMENT D Estimated Cost of Eligible Activities Table EGLE Department Specific Eligible Activities - Estimated Total Cost of Eligible Activities approved under Brownfield Plan Completion/Season/Year Pre- Approved Exempt Activities Baseline Environmental Assessment (BEA) Activities - Includes Phase I and Phase II ESA 20,000.00$ Hazardous Building Material Surveys 8,755.00$ Response Activity Plan and Part 58 Environmental requirements 15,559.00$ Documentation of Due Care Compliance Plan (DDCC)5,500.00$ Total - BEA Activities *no contingency already completed 49,814.00$ MSHDA Housing Development Activities Estimated Total Cost of Eligible Activities approved under Brownfield Plan Completion/Season/Year Qualified Rehabilitation * extensive list attached Masonry 145,600.00$ Rough Carpentry 58,870.00$ Finish Carpentry 157,648.00$ Roofing 93,740.00$ Windows 455,400.00$ Special Construction / Demo 151,592.00$ Elevators 39,800.00$ Fire Protection 68,450.00$ MSHDA Total Qualified Rehabiliation and housing development activity cost 1,171,100.00$ Brownfield Plan & Act 381 Work Plan Preparation Brownfield Plan/Act 381 Work Plan Preparation 5,000.00$ Act 381 Work Plan Implemenation 5,000.00$ Spring 2024-Summer 2024 Sub-Total Brownfield Plan & Act 381 Work Plan Preparation 20,000.00$ 54,814.00$ 1,176,100$ 1,230,914$ Total Estimated Elgible Brownfield Activities Developer Reimbursement of Total EGLE Exempt Environmental Activities Table 1 - Brownfield Eligible Activities - EGLE and MSHDA - Beacon Square Apartments - 101 Mechanic Street Pontiac, Oakland County, Michigan 2024 Developer Reimbursement of Total MSHDA Non- Environmental Activities Fall 2023 - Summer 2024 Fall 2024 - Fall 2026 ATTACHMENT E TIF Tables Tax Increment Revenue Capture Estimates Beacon Square Apartments Redevelopment 101 Mechanic Street Pontiac, Oakland County, Michigan 2024 Estimated Taxable Value (TV) Increase Rate 2%: Brownfield Plan Year 0 1 2 3 4 5 6 7 8 9 10 11 Calendar Year 2023-2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Parent Parcel LAND - Ad Valorem Base Year set in 2022 *Base Taxable Value 244,750$ 244,750$ 244,750$ 244,750$ 244,750$ 244,750$ 244,750$ 244,750$ 244,750$ 244,750$ 244,750$ 244,750$ Estimated New TV 315,450$ 321,759$ 328,194$ 334,758$ 341,453$ 348,282$ 355,248$ 362,353$ 369,600$ 376,992$ 384,532$ Incremental Difference (New TV - Base TV)70,700$ 77,009$ 83,444$ 90,008$ 96,703$ 103,532$ 110,498$ 117,603$ 124,850$ 132,242$ 139,782$ Post Development Taxable Value -$ 315,450$ 321,759$ 328,194$ 334,758$ 341,453$ 348,282$ 355,248$ 362,353$ 369,600$ 376,992$ 384,532$ School Capture Millage Rate State Education Tax (SET)6.0000 -$ 462$ 501$ 540$ 580$ 621$ 663$ 706$ 749$ 793$ 839$ School Operating Tax 18.0000 -$ 1,386$ 1,502$ 1,620$ 1,741$ 1,864$ 1,989$ 2,117$ 2,247$ 2,380$ 2,516$ School Total 24.0000 44.51%1,848$ 2,003$ 2,160$ 2,321$ 2,485$ 2,652$ 2,822$ 2,996$ 3,174$ 3,355$ Local Capture Millage Rate Pontiac City Operating 12.0000 -$ 924$ 1,001$ 1,080$ 1,160$ 1,242$ 1,326$ 1,411$ 1,498$ 1,587$ 1,677$ Library 0.9679 -$ 75$ 81$ 87$ 94$ 100$ 107$ 114$ 121$ 128$ 135$ County Operating 3.9686 -$ 306$ 331$ 357$ 384$ 411$ 439$ 467$ 495$ 525$ 555$ County Parks & Rec 0.3431 -$ 26$ 29$ 31$ 33$ 36$ 38$ 40$ 43$ 45$ 48$ Transportation 0.9500 -$ 73$ 79$ 86$ 92$ 98$ 105$ 112$ 119$ 126$ 133$ HCMA 0.2070 -$ 16$ 17$ 19$ 20$ 21$ 23$ 24$ 26$ 27$ 29$ OIS Allocated 0.1881 -$ 14$ 16$ 17$ 18$ 19$ 21$ 22$ 23$ 25$ 26$ OIS Voted 2.9777 -$ 229$ 248$ 268$ 288$ 308$ 329$ 350$ 372$ 394$ 416$ OCC 1.4891 -$ 115$ 124$ 134$ 144$ 154$ 165$ 175$ 186$ 197$ 208$ Sinking Fund 0.7980 -$ 61$ 67$ 72$ 77$ 83$ 88$ 94$ 100$ 106$ 112$ Cap Improve 1.3639 -$ 105$ 114$ 123$ 132$ 141$ 151$ 160$ 170$ 180$ 191$ Sanitation 2.7281 -$ 210$ 228$ 246$ 264$ 282$ 301$ 321$ 341$ 361$ 381$ Senior Services 0.4839 -$ 37$ 40$ 44$ 47$ 50$ 53$ 57$ 60$ 64$ 68$ Youth Services 1.4519 -$ 112$ 121$ 131$ 140$ 150$ 160$ 171$ 181$ 192$ 203$ Local Total 29.9173 55.49%-$ 2,304$ 2,496$ 2,693$ 2,893$ 3,097$ 3,306$ 3,518$ 3,735$ 3,956$ 4,182$ Non-Capturable Millages Millage Rate School Debt 2.0000 -$ 154$ 167$ 180$ 193$ 207$ 221$ 235$ 250$ 264$ 280$ DIA 0.1945 -$ 15$ 16$ 18$ 19$ 20$ 21$ 23$ 24$ 26$ 27$ Zoo 0.0945 -$ 7$ 8$ 9$ 9$ 10$ 10$ 11$ 12$ 12$ 13$ Total Non-Capturable Taxes 2.2890 -$ 176$ 191$ 206$ 221$ 237$ 253$ 269$ 286$ 303$ 320$ Total Millages 56.2063 25,636$ Total Brownfield Capturable Millages 53.9173 13,756$ -$ 4,152$ 4,499$ 4,853$ 5,214$ 5,582$ 5,958$ 6,341$ 6,732$ 7,130$ 7,537$ Total Brownfield Capturable Millages $4,152 4,499$ 4,853$ 5,214$ 5,582$ 5,958$ 6,341$ 6,732$ 7,130$ 7,537$ Tax Increment Revenue Capture Estimates Beacon Square Apartments Redevelopment 101 Mechanic Street Pontiac, Oakland County, Michigan 2024 Estimated Taxable Value (TV) Increase Rate 2%: Brownfield Plan Year Calendar Year Parent Parcel LAND - Ad Valorem Base Year set in 2022 *Base Taxable Value Estimated New TV Incremental Difference (New TV - Base TV) Post Development Taxable Value School Capture Millage Rate State Education Tax (SET)6.0000 School Operating Tax 18.0000 School Total 24.0000 44.51% Local Capture Millage Rate Pontiac City Operating 12.0000 Library 0.9679 County Operating 3.9686 County Parks & Rec 0.3431 Transportation 0.9500 HCMA 0.2070 OIS Allocated 0.1881 OIS Voted 2.9777 OCC 1.4891 Sinking Fund 0.7980 Cap Improve 1.3639 Sanitation 2.7281 Senior Services 0.4839 Youth Services 1.4519 Local Total 29.9173 55.49% Non-Capturable Millages Millage Rate School Debt 2.0000 DIA 0.1945 Zoo 0.0945 Total Non-Capturable Taxes 2.2890 Total Millages 56.2063 Total Brownfield Capturable Millages 53.9173 Total Brownfield Capturable Millages 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 244,750$ 244,750$ 244,750$ 244,750$ 244,750$ 244,750$ 244,750$ 244,750$ 244,750$ 244,750$ 244,750$ 244,750$ 244,750$ 244,750$ 392,222$ 400,067$ 408,068$ 416,230$ 424,554$ 433,045$ 441,706$ 450,540$ 459,551$ 468,742$ 478,117$ 487,679$ 497,433$ 507,382$ 147,472$ 155,317$ 163,318$ 171,480$ 179,804$ 188,295$ 196,956$ 205,790$ 214,801$ 223,992$ 233,367$ 242,929$ 252,683$ 262,632$ 392,222$ 400,067$ 408,068$ 416,230$ 424,554$ 433,045$ 441,706$ 450,540$ 459,551$ 468,742$ 478,117$ 487,679$ 497,433$ 507,382$ 885$ 932$ 980$ 1,029$ 1,079$ 1,130$ 1,182$ 1,235$ 1,289$ 1,344$ 1,400$ 1,458$ 1,516$ 1,576$ 2,655$ 2,796$ 2,940$ 3,087$ 3,236$ 3,389$ 3,545$ 3,704$ 3,866$ 4,032$ 4,201$ 4,373$ 4,548$ 4,727$ 3,539$ 3,728$ 3,920$ 4,116$ 4,315$ 4,519$ 4,727$ 4,939$ 5,155$ 5,376$ 5,601$ 5,830$ 6,064$ 6,303$ 1,770$ 1,864$ 1,960$ 2,058$ 2,158$ 2,260$ 2,363$ 2,469$ 2,578$ 2,688$ 2,800$ 2,915$ 3,032$ 3,152$ 143$ 150$ 158$ 166$ 174$ 182$ 191$ 199$ 208$ 217$ 226$ 235$ 245$ 254$ 585$ 616$ 648$ 681$ 714$ 747$ 782$ 817$ 852$ 889$ 926$ 964$ 1,003$ 1,042$ 51$ 53$ 56$ 59$ 62$ 65$ 68$ 71$ 74$ 77$ 80$ 83$ 87$ 90$ 140$ 148$ 155$ 163$ 171$ 179$ 187$ 196$ 204$ 213$ 222$ 231$ 240$ 249$ 31$ 32$ 34$ 35$ 37$ 39$ 41$ 43$ 44$ 46$ 48$ 50$ 52$ 54$ 28$ 29$ 31$ 32$ 34$ 35$ 37$ 39$ 40$ 42$ 44$ 46$ 48$ 49$ 439$ 462$ 486$ 511$ 535$ 561$ 586$ 613$ 640$ 667$ 695$ 723$ 752$ 782$ 220$ 231$ 243$ 255$ 268$ 280$ 293$ 306$ 320$ 334$ 348$ 362$ 376$ 391$ 118$ 124$ 130$ 137$ 143$ 150$ 157$ 164$ 171$ 179$ 186$ 194$ 202$ 210$ 201$ 212$ 223$ 234$ 245$ 257$ 269$ 281$ 293$ 306$ 318$ 331$ 345$ 358$ 402$ 424$ 446$ 468$ 491$ 514$ 537$ 561$ 586$ 611$ 637$ 663$ 689$ 716$ 71$ 75$ 79$ 83$ 87$ 91$ 95$ 100$ 104$ 108$ 113$ 118$ 122$ 127$ 214$ 226$ 237$ 249$ 261$ 273$ 286$ 299$ 312$ 325$ 339$ 353$ 367$ 381$ 4,412$ 4,647$ 4,886$ 5,130$ 5,379$ 5,633$ 5,892$ 6,157$ 6,426$ 6,701$ 6,982$ 7,268$ 7,560$ 7,857$ 295$ 311$ 327$ 343$ 360$ 377$ 394$ 412$ 430$ 448$ 467$ 486$ 505$ 525$ 29$ 30$ 32$ 33$ 35$ 37$ 38$ 40$ 42$ 44$ 45$ 47$ 49$ 51$ 14$ 15$ 15$ 16$ 17$ 18$ 19$ 19$ 20$ 21$ 22$ 23$ 24$ 25$ 338$ 356$ 374$ 393$ 412$ 431$ 451$ 471$ 492$ 513$ 534$ 556$ 578$ 601$ 7,951$ 7,951$ 8,374$ 8,806$ 9,246$ 9,695$ 10,152$ 10,619$ 11,096$ 11,581$ 12,077$ 12,583$ 13,098$ 13,624$ 14,160$ Tax Increment Revenue Capture Estimates Beacon Square Apartments Redevelopment 101 Mechanic Street Pontiac, Oakland County, Michigan 2024 Estimated Taxable Value (TV) Increase Rate 2%: Brownfield Plan Year Calendar Year Parent Parcel LAND - Ad Valorem Base Year set in 2022 *Base Taxable Value Estimated New TV Incremental Difference (New TV - Base TV) Post Development Taxable Value School Capture Millage Rate State Education Tax (SET)6.0000 School Operating Tax 18.0000 School Total 24.0000 44.51% Local Capture Millage Rate Pontiac City Operating 12.0000 Library 0.9679 County Operating 3.9686 County Parks & Rec 0.3431 Transportation 0.9500 HCMA 0.2070 OIS Allocated 0.1881 OIS Voted 2.9777 OCC 1.4891 Sinking Fund 0.7980 Cap Improve 1.3639 Sanitation 2.7281 Senior Services 0.4839 Youth Services 1.4519 Local Total 29.9173 55.49% Non-Capturable Millages Millage Rate School Debt 2.0000 DIA 0.1945 Zoo 0.0945 Total Non-Capturable Taxes 2.2890 Total Millages 56.2063 Total Brownfield Capturable Millages 53.9173 Total Brownfield Capturable Millages 26 27 28 29 30 TOTAL 2049 2050 2051 2052 2053 244,750$ 244,750$ 244,750$ 244,750$ 244,750$ 517,529$ 527,880$ 538,437$ 549,206$ 560,190$ 272,779$ 283,130$ 293,687$ 304,456$ 315,440$ 517,529$ 527,880$ 538,437$ 549,206$ 560,190$ 1,637$ 1,699$ 1,762$ 1,827$ 1,893$ 32,304$ 4,910$ 5,096$ 5,286$ 5,480$ 5,678$ 96,912$ 6,547$ 6,795$ 7,048$ 7,307$ 7,571$ 129,216$ 3,273$ 3,398$ 3,524$ 3,653$ 3,785$ 49,930$ 264$ 274$ 284$ 295$ 305$ 4,027$ 1,083$ 1,124$ 1,166$ 1,208$ 1,252$ 16,513$ 94$ 97$ 101$ 104$ 108$ 1,428$ 259$ 269$ 279$ 289$ 300$ 3,953$ 56$ 59$ 61$ 63$ 65$ 861$ 51$ 53$ 55$ 57$ 59$ 783$ 812$ 843$ 875$ 907$ 939$ 12,390$ 406$ 422$ 437$ 453$ 470$ 6,196$ 218$ 226$ 234$ 243$ 252$ 3,320$ 372$ 386$ 401$ 415$ 430$ 5,675$ 744$ 772$ 801$ 831$ 861$ 11,351$ 132$ 137$ 142$ 147$ 153$ 2,013$ 396$ 411$ 426$ 442$ 458$ 6,041$ 8,161$ 8,470$ 8,786$ 9,109$ 9,437$ 124,482$ 546$ 566$ 587$ 609$ 631$ 8,322$ 53$ 55$ 57$ 59$ 61$ 809$ 26$ 27$ 28$ 29$ 30$ 393$ 624$ 648$ 672$ 697$ 722$ 9,524$ 14,708$ 15,266$ 15,835$ 16,415$ 17,008$ 224,342$ Tax Increment Revenue Reimbursement Allocation Table Beacon Square Redevelopment 101 Mechanic Street Pontiac, Oakland County, MI 2024 Developer Maximum Reimbursement Total Proportionality School & Local Taxes Local-Only Taxes Total Developer Total Estimated Tax Reimbursement 236,765$ TOTAL 100%236,765$ -$ 236,765$ BRA Admin Fee Tax Reimbursement 41,782$ State 44.51%105,390$ -$ 105,390$ State Brownfield Redevelopment Fund Reimbursement $ 11,744 Local 55.49%131,375$ -$ 131,375$ Local Brownfield Revolving Loan Fund $- TOTAL 100%236,765$ 236,765$ TOTAL 290,291$ MSHDA 84.47%200,000$ 200,000$ EGLE 15.53%36,765$ -$ 36,765$ 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 2023-2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Total State Incremental Revenue -$ -$ 1,848$ 2,003$ 2,160$ 2,321$ 2,485$ 2,652$ 2,822$ 2,996$ 3,174$ 3,355$ 3,539$ 3,728$ 3,920$ 4,116$ State Brownfield Redevelopment Fund (50% of SET)-$ -$ 231$ 250$ 270$ 290$ 311$ 331$ 353$ 375$ 397$ 419$ 442$ 466$ 490$ 514$ State TIR Available for Reimbursement -$ -$ 1,617$ 1,752$ 1,890$ 2,031$ 2,174$ 2,320$ 2,470$ 2,622$ 2,777$ 2,935$ 3,097$ 3,262$ 3,430$ 3,601$ Total Local Increment Revenue -$ -$ 2,304$ 2,496$ 2,693$ 2,893$ 3,097$ 3,306$ 3,518$ 3,735$ 3,956$ 4,182$ 4,412$ 4,647$ 4,886$ 5,130$ BRA Administrative Fee (up to $5,000/YR)-$ -$ 588$ 637$ 687$ 739$ 791$ 844$ 898$ 954$ 1,010$ 1,068$ 1,126$ 1,186$ 1,247$ 1,310$ Local TIR Available for Reimbursement -$ -$ 1,716$ 1,859$ 2,005$ 2,155$ 2,307$ 2,462$ 2,620$ 2,782$ 2,946$ 3,114$ 3,286$ 3,460$ 3,639$ 3,821$ Total State & Local TIR Available -$ -$ 3,333$ 3,611$ 3,896$ 4,185$ 4,481$ 4,782$ 5,090$ 5,403$ 5,723$ 6,050$ 6,383$ 6,722$ 7,068$ 7,422$ DEVELOPER Reimbursement Balance 236,765$ -$ 236,765$ 233,432$ 229,821$ 225,925$ 221,740$ 217,259$ 212,477$ 207,387$ 201,983$ 196,260$ 190,210$ 183,828$ 177,106$ 170,037$ 162,616$ EGLE -Preapproved-Environmental Costs 36,765$ 518$ 561$ 605$ 650$ 696$ 743$ 790$ 839$ 889$ 939$ 991$ 1,044$ 1,098$ 1,152$ State Tax Reimbursement 230$ 250$ 269$ 289$ 310$ 331$ 352$ 373$ 396$ 418$ 441$ 465$ 489$ 513$ Local Tax Reimbursement 287$ 311$ 336$ 361$ 386$ 412$ 439$ 466$ 493$ 521$ 550$ 579$ 609$ 639$ Total EGLE Reimbursement Balance 36,765$ 36,247$ 35,687$ 35,082$ 34,432$ 33,736$ 32,993$ 32,203$ 31,364$ 30,475$ 29,536$ 28,545$ 27,501$ 26,403$ 25,251$ MSHDA HTIF 200,000$ -$ 2,815$ 3,051$ 3,291$ 3,535$ 3,785$ 4,040$ 4,299$ 4,564$ 4,835$ 5,110$ 5,391$ 5,678$ 5,971$ 6,269$ State Tax Reimbursement -$ 1,253$ 1,358$ 1,465$ 1,574$ 1,685$ 1,798$ 1,914$ 2,032$ 2,152$ 2,275$ 2,400$ 2,528$ 2,658$ 2,791$ Local Tax Reimbursement -$ 1,562$ 1,693$ 1,826$ 1,962$ 2,100$ 2,242$ 2,386$ 2,533$ 2,683$ 2,836$ 2,992$ 3,151$ 3,313$ 3,479$ Total MSHDA Reimbursement Balance 200,000$ 197,185$ 194,134$ 190,843$ 187,308$ 183,523$ 179,483$ 175,184$ 170,619$ 165,785$ 160,674$ 155,283$ 149,605$ 143,634$ 137,365$ Total Annual Developer Reimbursement 236,765$ -$ 3,333$ 3,611$ 3,896$ 4,185$ 4,481$ 4,782$ 5,090$ 5,403$ 5,723$ 6,050$ 6,383$ 6,722$ 7,068$ 7,422$ LOCAL BROWNFIELD REVOLVING FUND LBRF Deposits *0 State Tax Capture -$ 0 Local Tax Capture -$ 0 Total LBRF Capture -$ 0 *Up to five years of capture for LBRF Deposits after eligible activities are reimbursed. May be taken from EGLE & Local TIR only. Footnotes: DEVELOPER Beginning Balance BRA admininstrative fee is 5% and may be used for Administration or LBRF capture. This amount may be adusted downward or upward based upon a plan's proportionate share of all tax increment revenue available and based upon maximum amounts that an authority can capture for administrative fees per PA 381. LBRF dollars will be captured if available following the reimbursement of the eligible activities to the developer. Estimated Total Years of Plan: 30 Years Tax Increment Revenue Reimbursement Allocation Table Beacon Square Redevelopment 101 Mechanic Street Pontiac, Oakland County, MI 2024 Total State Incremental Revenue State Brownfield Redevelopment Fund (50% State TIR Available for Reimbursement Total Local Increment Revenue BRA Administrative Fee (up to $5,000/YR) Local TIR Available for Reimbursement Total State & Local TIR Available DEVELOPER Reimbursement Balance EGLE -Preapproved-Environmental Costs State Tax Reimbursement Local Tax Reimbursement Total EGLE Reimbursement Balance MSHDA HTIF State Tax Reimbursement Local Tax Reimbursement Total MSHDA Reimbursement Balance Total Annual Developer Reimbursement LOCAL BROWNFIELD REVOLVING FU LBRF Deposits * State Tax Capture Local Tax Capture Total LBRF Capture *Up to five years of capture for LBRF Depo Footnotes: DEVELOPER BRA admininstrative fee is 5% and may be based upon a plan's proportionate share of capture for administrative fees per PA 381. the developer. 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 TOTAL 4,315$ 4,519$ 4,727$ 4,939$ 5,155$ 5,376$ 5,601$ 5,830$ 6,064$ 6,303$ 6,547$ 6,795$ 7,048$ 7,307$ 7,571$ 129,216$ 539$ 565$ 591$ 617$ 644$ 672$ 700$ 729$ 758$ 788$ 11,744$ 3,776$ 3,954$ 4,136$ 4,322$ 4,511$ 4,704$ 4,901$ 5,102$ 5,306$ 5,515$ 6,547$ 6,795$ 7,048$ 7,307$ 7,571$ 117,472$ 5,379$ 5,633$ 5,892$ 6,157$ 6,426$ 6,701$ 6,982$ 7,268$ 7,560$ 7,857$ 8,161$ 8,470$ 8,786$ 9,109$ 9,437$ 161,075$ 1,373$ 1,438$ 1,504$ 1,572$ 1,641$ 1,711$ 1,782$ 1,855$ 1,930$ 2,006$ 2,206$ 2,290$ 2,375$ 2,462$ 2,551$ 41,782$ 4,006$ 4,195$ 4,388$ 4,585$ 4,786$ 4,990$ 5,199$ 5,412$ 5,630$ 5,851$ 5,955$ 6,181$ 6,411$ 6,646$ 6,886$ 119,293$ 7,782$ 8,149$ 8,524$ 8,907$ 9,297$ 9,694$ 10,100$ 10,514$ 10,936$ 11,367$ 12,501$ 12,976$ 13,460$ 13,953$ 14,457$ 236,765$ 154,834$ 146,684$ 138,160$ 129,254$ 119,957$ 110,263$ 100,163$ 89,649$ 78,713$ 67,346$ 54,845$ 41,869$ 28,410$ 14,456$ (0)$ 236,765$ 1,208$ 1,265$ 1,324$ 1,383$ 1,444$ 1,505$ 1,568$ 1,633$ 1,698$ 1,765$ 1,941$ 2,015$ 2,090$ 2,167$ 2,245$ 36,765$ 538$ 563$ 589$ 616$ 643$ 670$ 698$ 727$ 756$ 786$ 864$ 897$ 930$ 964$ 999$ 16,365$ 670$ 702$ 734$ 767$ 801$ 835$ 870$ 906$ 942$ 979$ 1,077$ 1,118$ 1,160$ 1,202$ 1,246$ 20,400$ 24,043$ 22,777$ 21,454$ 20,071$ 18,627$ 17,122$ 15,553$ 13,921$ 12,223$ 10,458$ 8,516$ 6,501$ 4,411$ 2,245$ -$ 6,573$ 6,884$ 7,201$ 7,524$ 7,853$ 8,189$ 8,532$ 8,881$ 9,238$ 9,602$ 10,560$ 10,961$ 11,370$ 11,786$ 12,212$ 200,000$ 2,926$ 3,064$ 3,205$ 3,349$ 3,496$ 3,645$ 3,798$ 3,953$ 4,112$ 4,274$ 4,701$ 4,879$ 5,061$ 5,246$ 5,436$ 89,025$ 3,647$ 3,820$ 3,995$ 4,175$ 4,357$ 4,544$ 4,734$ 4,928$ 5,126$ 5,328$ 5,860$ 6,082$ 6,309$ 6,540$ 6,776$ 110,975$ 130,791$ 123,907$ 116,707$ 109,183$ 101,330$ 93,141$ 84,609$ 75,728$ 66,490$ 56,889$ 46,329$ 35,368$ 23,998$ 12,212$ 7,782$ 8,149$ 8,524$ 8,907$ 9,297$ 9,694$ 10,100$ 10,514$ 10,936$ 11,367$ 12,501$ 12,976$ 13,460$ 13,953$ 14,457$ 236,765$ -$ Developer Maximum Reimbursement Total Proportionality School & Local Taxes Local-Only Taxes Total 236,765$ TOTAL 100% 236,765$ -$ 236,765$ 41,782$ State 44.51% 105,390$ -$ 105,390$ $ $ 1 744 Local 55.49% 131,375$ -$ 131,375$ Developer Total Estimated Tax Reimbursement BRA Admin Fee Tax Reimbursement State Brownfield Redevelopment Fund Reimbursement Local Brownfield Revolving Loan Fund $ TOTAL 236,765100%$ 236,765$ TOTAL 290,291$ MSHDA 200,00084.47%$ 200,000$ EGLE 36,76515.53%$$ 36,765 -$ Estimated Total Years of Plan: 30 Years