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Resolutions - 2025.02.11 - 41860
AGENDA ITEM: Carlisle Townhomes Brownfield Plan located at 204 W. New York in the City of Pontiac DEPARTMENT: Economic Development - Business Development MEETING: Board of Commissioners DATE: Tuesday, February 11, 2025 6:00 PM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2025-4915 Motion to adopt the Carlisle Townhomes Brownfield Redevelopment Plan located at 204 W. New York in the City of Pontiac. ITEM CATEGORY SPONSORED BY Brownfield/TIF Yolanda Smith Charles INTRODUCTION AND BACKGROUND The proposed project will facilitate redevelopment of a 3.8-acre property occupied by a former school building and the adjoining public rights-of-way. The new development involves demolishing the former school building as it is no longer economically viable to be repurposed. The property will then be redeveloped into 19 single-family rental townhomes. The project will also create an estimated 500-square-foot community center, providing enrichment classes, after-school and summer youth programming, and a playground for the residents, with attractive landscaping and greenspace throughout. The project is intended to start construction at the beginning of 2025 and be completed by the end of 2025. This project serves a public purpose in the City of Pontiac, expanding the tax base, investing significant capital into the community, and creating affordable housing. Carlisle Townhomes will be targeted towards individuals and families earning up to 60% of the Area Median Income (AMI). Oakland County’s AMI is $86,275; 60% of the AMI is $51,765. It is anticipated that eleven units in the development will be Permanent Supportive Housing (PSH), reserved for individuals and families referred from the top 10% of Oakland County Continuum of Care Coordinated Entry PSH prioritized list. 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 204 W. New York site in the City of Pontiac (the “Property”) is defined as a Housing Project under state statute. A Brownfield clean up and redevelopment plan (the “Plan”) has been prepared to restore the environmental and 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 204 W. New York development. The developer, Carlisle Townhomes, will assume Brownfield related eligible activity development costs estimated at $1,913,725. Costs include baseline environmental assessments, public infrastructure improvements and 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 twenty (20) year period. Total tax capture consists of the following: Developer Reimbursement $1,913,725 State Revolving Fund $127,207 OCBRA Admin Fees $92,000 OCBRA Revolving Fund $356,988 Total Tax Capture $2,489,920 No budget amendment is required as the budget already includes tax capture offsets. POLICY ANALYSIS The developer of the Carlisle Townhomes project is Community Housing Network, Inc. Carlisle Townhomes will have approximately 8 units targeted towards individuals and families earning up to 60% of the Area Median Income (AMI) with an estimated 11 units reserved for Permanent Supportive Housing (PSH); individuals and families referred from the top 10% of Oakland County Continuum of Care Coordinated Entry PSH prioritized list. Rents at Carlisle Townhomes will range from $1,039 to $1,334 for a two-bedroom, two-bath home. By contrast, current rents at other two+ bedroom homes in Pontiac without subsidies are around $1,500. The property is currently occupied by a former school building. The building is not economically viable to be repurposed and will be demolished to accommodate the income-qualified housing project. There are no residents or families residing at this property, and thus no residents, families, or individuals will be displaced by the project. The OCBRA intends to begin the capture of tax increment in 2026. This plan will then remain in place for 24 years, or until the eligible activities have been fully reimbursed, and up to five full years of capture into the LBRF (not to exceed the cost of eligible activities), whichever occurs sooner. Pursuant to Public Act 381 of 1996, a public hearing on the adoption of the Brownfield Redevelopment Plan for the Carlisle Townhomes Brownfield project shall be held on February 11, 2025, at 6 PM in the Oakland County Board of Commissioners Auditorium, 1200 N. Telegraph Rd. Pontiac, Michigan. BUDGET AMENDMENT REQUIRED: No Committee members can contact Barbara Winter, Policy and Fiscal Analysis Supervisor at 248.821.3065 or winterb@oakgov.com or the department contact persons listed for additional information. CONTACT Bradley Hansen, Business Development Representative Senior Kristen Wiltfang, Administrator Trails, Transportation & Environment ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 2/11/2025 AGENDA DEADLINE: 02/21/2025 7:36 PM ATTACHMENTS 1. EDI Packet 204 W. New York Pontiac COMMITTEE TRACKING 2025-02-05 Economic Development & Infrastructure - Forward to Finance 2025-02-05 Finance - Recommend to Board 2025-02-11 Full Board - Adopt Motioned by: Commissioner Michael Gingell Seconded by: Commissioner Penny Luebs Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Angela Powell, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ann Erickson Gault, Linnie Taylor, Robert Smiley (18) No: None (0) Abstain: None (0) Absent: Gwen Markham (1) Passed RESOLUTION TO APPROVE A BROWNFIELD REDEVELOPMENT PLAN FOR THE 204 W. NEW YORK BROWNFIELD SITE DECEMBER 10, 2024 WHEREAS, the 204 W. New York site has been an underutilized parcel; and, WHEREAS, a redevelopment and obtainable housing plan has been established to restore the economic viability of this parcel; and, WHEREAS, the redevelopment will serve a public purpose; and, WHEREAS, the local host committee have met and have recommended the approval of the Brownfield plan; and, WHEREAS, the BRA Board has reviewed the proposed plan; now, THEREFORE, BE IT RESOLVED, the Brownfield Plan for the 204 W. New York project is hereby approved by the OCBRA on December 10th, 2024; provided that, 1. The Developer and the OCBRA agree upon a mutually acceptable Reimbursement Agreement, and the OCBRA authorizes the Board Chairperson to sign the reimbursement agreement on behalf of the OCBRA. 2. The local TIF capture will not exceed amounts approved in the 381 Workplan. BE IT FURTHER RESOLVED, to recommend the adoption of this plan by the Oakland County Board of Commissioners. Yeas- Trigger, Phillips, Jamieson-Urena, Rasegan, Woodward Nays- ________________________________ Anne Jamieson-Urena Vice Chairperson, Oakland County Brownfield Redevelopment Authority Act 381 Brownfield Plan Carlisle Townhomes 204 West New York Avenue Pontiac, Michigan Prepared For: Oakland County Brownfield Redevelopment Authority Pontiac, Michigan Project No. 231211 November 21, 2024 Act 381 Brownfield Plan Carlisle Townhomes 204 West New York Avenue Pontiac, Michigan 48340 Prepared For: Oakland County Brownfield Redevelopment Authority Pontiac, MI November 21, 2024, 2023 Project No. 231211 Recommended for Approval by the Brownfield Redevelopment Authority on: ________________ Supported by the Governing Body of the Local Jurisdiction on: ________________ Adopted by the County Board of Commissioners on: ________________ Table of Contents Fishbeck | Page i Z:\2023\231211\WORK\REPT\CARLISLE TOWNHOMES PONTIAC\REVISED PLAN NOVEMBER 2024\ACT 381 BP_CARLISLE TOWNHOMES_OAKLAND COUNTY BRA_2024_1121.DOCX 1.0 Introduction ................................................................................................................................................................... 1 1.1 PROPOSED REDEVELOPMENT AND FUTURE USE FOR EACH ELIGIBLE PROPERTY ................................................................... 1 1.2 ELIGIBLE PROPERTY INFORMATION .............................................................................................................................. 1 Basis of Eligibility .................................................................................................................................................... 2 2.0 Information Required by Section 13(2) of the Statute ................................................................................................... 2 2.1 DESCRIPTION OF COSTS TO BE PAID FOR WITH TAX INCREMENT REVENUES ......................................................................... 2 2.1.1 Site Assessment and Baseline Environmental Assessment Activities .................................................. 3 2.1.2 Infrastructure Improvements ............................................................................................................... 3 2.1.3 Building Demolition .............................................................................................................................. 3 2.1.4 Site Demolition ..................................................................................................................................... 3 2.1.5 Site Preparation .................................................................................................................................... 3 2.1.6 Development of Housing Financing Gap .............................................................................................. 3 2.1.7 Brownfield Plan/Work Plan Preparation .............................................................................................. 3 2.1.8 Brownfield Plan/Work Plan Implementation ....................................................................................... 4 2.1.9 Contingency .......................................................................................................................................... 4 2.1.10 Authority Administration Cost ............................................................................................................. 4 2.1.11 Local Brownfield Revolving Fund ......................................................................................................... 4 2.2 SUMMARY OF ELIGIBLE ACTIVITIES .............................................................................................................................. 4 Environmental Activities ........................................................................................................................................ 4 Non-Environmental Activities ................................................................................................................................ 4 Authority Expenses ................................................................................................................................................ 4 Contingencies 4 2.3 ESTIMATE OF CAPTURED TAXABLE VALUE AND TAX INCREMENT REVENUES ........................................................................ 4 2.4 METHOD OF FINANCING AND DESCRIPTION OF ADVANCES MADE BY THE MUNICIPALITY ...................................................... 5 2.5 MAXIMUM AMOUNT OF NOTE OR BONDED INDEBTEDNESS ............................................................................................ 5 2.6 DURATION OF BROWNFIELD PLAN .............................................................................................................................. 5 2.7 ESTIMATED IMPACT OF TAX INCREMENT FINANCING ON REVENUES OF TAXING JURISDICTIONS .............................................. 5 2.8 LEGAL DESCRIPTION, PROPERTY MAP, STATEMENT OF QUALIFYING CHARACTERISTICS, AND PERSONAL PROPERTY .................... 5 2.9 ESTIMATES OF RESIDENTS AND DISPLACEMENT OF INDIVIDUALS/FAMILIES ......................................................................... 6 2.10 PLAN FOR RELOCATION OF DISPLACED PERSONS............................................................................................................ 6 2.11 PROVISIONS FOR RELOCATION COSTS .......................................................................................................................... 6 2.12 STRATEGY FOR COMPLIANCE WITH MICHIGAN’S RELOCATION ASSISTANCE LAW ................................................................. 6 2.13 OTHER MATERIAL THAT THE AUTHORITY OR GOVERNING BODY CONSIDERS PERTINENT ....................................................... 6 Table of Contents Fishbeck | Page ii Z:\2023\231211\WORK\REPT\CARLISLE TOWNHOMES PONTIAC\REVISED PLAN NOVEMBER 2024\ACT 381 BP_CARLISLE TOWNHOMES_OAKLAND COUNTY BRA_2024_1121.DOCX List of Figures Figure 1 – Location Map of the Eligible Property Figure 2 – Site Plan Figure 3 – Site Plan with Future Lots List of Tables Table 1 – Summary of Eligible Costs Table 2 – Total Captured Incremental Taxes Estimates Table 3 – Estimated Reimbursement Schedule List of Appendices Appendix 1 Resolutions from the City of Pontiac Appendix 2 Relevant Sections from MSHDA Partnership L Data Document Appendix 3 MSHDA Total Housing Subsidy Calculation List of Abbreviations/Acronyms Act 381 Brownfield Redevelopment Financing Act, 1996 PA 381, as amended AMI Area Median Income OCBRA Oakland County Brownfield Redevelopment Authority LBRF Local Brownfield Revolving Fund MSHDA Michigan State Housing Development Authority PA Public Act PSH Permanent Supportive Housing November 21, 2024 Fishbeck | Page 1 Z:\2023\231211\WORK\REPT\CARLISLE TOWNHOMES PONTIAC\REVISED PLAN NOVEMBER 2024\ACT 381 BP_CARLISLE TOWNHOMES_OAKLAND COUNTY BRA_2024_1121.DOCX 1.0 Introduction 1.1 Proposed Redevelopment and Future Use for Each Eligible Property The proposed project will facilitate redevelopment of a 3.8-acre property occupied by a former school building and the adjoining public rights-of-way. The new development involves demolishing the former school building as it is no longer economically viable to be repurposed. The property will then be redeveloped into 19 single-family rental townhomes. The project will also create an estimated 500-square-foot community center, providing enrichment classes, after-school and summer youth programming, and a playground for the residents, with attractive landscaping and greenspace throughout. This plan helps to offset the cost gap associated with the redevelopment through reimbursement of eligible activities with the new tax increment generated by the redevelopment. The total capital investment for the project is expected to be $8,400,000. The Developer has a budget shortfall of $1,913,725 to construct the project. In addition to the budget shortfall, the Brownfield Plan includes $50,000 for Plan implementation and $92,000 for Plan administration. An Act 381 Work Plan will be submitted to the Michigan State Housing Development Authority (MSHDA) to request approval of state school and education tax increment revenues for eligible activities. The project is intended to start construction at the beginning of 2025 and be completed by the end of 2025. This project serves a public purpose in the City of Pontiac, expanding the tax base, investing significant capital into the community, and creating affordable housing. Carlisle Townhomes will be targeted towards individuals and families earning up to 60% of the Area Median Income (AMI). Oakland County’s AMI is $86,275; 60% of the AMI is $51,765. It is anticipated that eleven units in the development will be Permanent Supportive Housing (PSH), reserved for individuals and families referred from the top 10% of Oakland County Continuum of Care Coordinated Entry PSH prioritized list. Eligible Activities included in the Carlisle Townhomes Brownfield Plan (for cost breakdown, see Table 1 – Summary of Eligible Activities) EGLE Eligible Activities $11,825 MSHDA Eligible Activities $1,951,900 OCBRA Administration $92,000 Local Brownfield Revolving Fund $356,988 Brownfield Plan Total $2,412,713 1.2 Eligible Property Information Parcel ID: 64-14-08-353-011 204 W. New York Avenue, Pontiac, Michigan 48340 Approximately 3.8 acres The property is located in the City of Pontiac (the “City”), a qualified local governmental unit pursuant to Act 381. November 21, 2024 Fishbeck | Page 2 Z:\2023\231211\WORK\REPT\CARLISLE TOWNHOMES PONTIAC\REVISED PLAN NOVEMBER 2024\ACT 381 BP_CARLISLE TOWNHOMES_OAKLAND COUNTY BRA_2024_1121.DOCX Basis of Eligibility The property qualifies as “eligible property” under the Brownfield Redevelopment Financing Act, 1996 PA 381, as amended (“Act 381”) on the basis of meeting the definition of a “Housing Property.” According to Section 2(o)(ii), the 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.” 1. Located in a community with a specific housing need: Workforce housing is particularly needed in Oakland County. The scarcity of quality newer housing in the development’s Pontiac location (MSHDA Housing Needs Market 275, Northeast Pontiac) is a greater problem than affordability. According to the MSHDA Partnership L Data Document (Appendix 2), while demand indicators in Pontiac are relatively low, the housing stock is also “quite old, with few units built after 2010 and nearly a quarter dating back to 1939 or earlier.” In this market area, fewer than 1% of homes were built after 2010; 73% were built before 1970. MSHDA data shows a renter vacancy rate of 0.1% in northeast Pontiac. The number of households in this market area fell between 2016 and 2021, which could be attributable to housing age or a scarcity of housing units. MSHDA’s “Other Market Indicators” showed “Low Strength and High Need (Type II)” with a five-year need for 5,899 Housing Partnership renter units in five years. In the last 12 months, the median sale price for a home in Oakland County was $321,000 to $350,000, a 1.4% to 2% increase since July 2022 (numbers vary within this range between websites such as Rocket Mortgage, Redfin, and Realtor.com). A home at this cost is beyond the reach of many Pontiac residents, particularly those at the household income level targeted for this housing development. Relevant housing data from MSHDA’s Partnership L Data Document is in Appendix 2. 2. Absorption data or job growth data is included in the Brownfield Plan: Oakland County has a higher absorption rate than the State of Michigan. According to FRED Economic Data released for June of 2023, Michigan housing spends an average median of 32 days on the market. For the same period, Oakland County housing spends only a median of 25 days on the market, the 5th lowest amount of time in the state. Real estate websites claim that homes sell in as little as 13 days. According to Oakland County’s website, “In its annual forecast of the Oakland County economy, the U-M Research Seminar in Quantitative Economics predicts the number of jobs will grow by 1.4% this year, 1.3% in 2024 and 1.6% in 2025. The local labor force is expected to grow more quickly than the number of employed residents, which puts upward pressure on the jobless rate this fall and the first half of 2024.” 2.0 Information Required by Section 13(2) of the Statute 2.1 Description of Costs to be Paid for with Tax Increment Revenues This Brownfield Plan has been developed to reimburse existing and anticipated costs to be incurred by Community Housing Network, Inc. Tax increment revenues will be captured for reimbursement from local and school tax increment revenues, following the approval of a MSHDA Act 381 Work Plan. The total cost of developer eligible activities is anticipated to be $1,913,725. The Oakland County Brownfield Redevelopment Authority’s (OCBRA) plan implementation costs of $50,000 are reimbursable. The OCBRA’s administrative costs are anticipated to be up to $92,000. The estimated cost of all eligible activities under this plan is summarized in Table 1. The capture of tax increment revenue for the Local Brownfield Revolving Fund (LBRF) is estimated to be up to $356,988. November 21, 2024 Fishbeck | Page 3 Z:\2023\231211\WORK\REPT\CARLISLE TOWNHOMES PONTIAC\REVISED PLAN NOVEMBER 2024\ACT 381 BP_CARLISLE TOWNHOMES_OAKLAND COUNTY BRA_2024_1121.DOCX 2.1.1 Site Assessment and Baseline Environmental Assessment Activities Eligible costs for reimbursement include Pre-Approved Activities: a Phase I Environmental Site Assessment ($3,000) and Pre-Demolition Hazardous Materials Building Survey ($8,825). The total Pre-Approved Activities cost is $11,825. Pre-Approved Activities are statutorily eligible for reimbursement with both school and non-school tax increment revenues. 2.1.2 Infrastructure Improvements Portions of the street will need to be demolished to access existing utilities and repaved for an estimated cost of $230,500. Sidewalks, curbs, and gutters will also be repaved for an estimated cost of $28,500. Additional storm sewers will be installed for an estimated cost of $125,750. The total cost of infrastructure improvements is anticipated to be $384,750. 2.1.3 Building Demolition The former school building is not economically viable to be repurposed and will be demolished to accommodate the income-qualified housing project. The anticipated cost of demolition, including asbestos abatement, is $800,000. 2.1.4 Site Demolition Existing curbs, gutters, and other site concrete will be demolished to accommodate the income-qualified housing project at an estimated cost of $95,000. Additional site demolition may include the removal of abandoned utilities, underground storage tanks, parking lot removal, etc. at an estimated cost of $20,000. The total anticipated cost of site demolition is $115,000. 2.1.5 Site Preparation Site preparation activities are anticipated to accommodate the income-qualified housing project and include land balancing, clearing and grubbing, compaction, etc. ($95,000); staking ($14,250); and the associated soft costs ($27,000). The total cost of these activities is anticipated to be $136,250. 2.1.6 Development of Housing Financing Gap Oakland County’s housing prices and incomes are wildly diverse. Countywide averages typically do not apply to Pontiac. The MSHDA formula for potentially eligible activities under the Brownfield Plan is likewise much more than the actual need for assistance to make this project’s numbers work. As a result, this plan is based on the project’s need. Act 381 Section 2(x)(iv) permits reimbursement from tax increment revenues “to fill a financing gap associated with the development of housing units priced for income-qualified households.” The Carlisle Townhomes project includes nineteen two-bedroom units, targeting residents with 60% of the AMI, of which eleven units are anticipated to be supported by a project-based voucher (PBV) and a $1,334 monthly unit rent, and the remaining eight units will be marketed at a $1,039 monthly unit rent. The average rent in Pontiac for a (typically older) two-or-more-bedroom home with two or more baths is about $1,500. The total potential rent loss (PRL) gap cap is calculated as $228,000. This amount was calculated based on the financing gap needed to make the project feasible. 2.1.7 Brownfield Plan/Work Plan Preparation Preparation of the Brownfield Plan is estimated to cost $12,500. It is anticipated that a MSHDA Work Plan will be pursued, which is estimated to cost $10,000. The total cost of these activities is anticipated to be $22,500. November 21, 2024 Fishbeck | Page 4 Z:\2023\231211\WORK\REPT\CARLISLE TOWNHOMES PONTIAC\REVISED PLAN NOVEMBER 2024\ACT 381 BP_CARLISLE TOWNHOMES_OAKLAND COUNTY BRA_2024_1121.DOCX 2.1.8 Brownfield Plan/Work Plan Implementation Implementation of the Brownfield Plan and Work Plan is anticipated to be incurred by the OCBRA for a total of $50,000. 2.1.9 Contingency A 15% contingency is included to cover unexpected cost overruns encountered during construction. Contingency is calculated on public infrastructure, building demolition, site demolition, and site preparation activities. The total contingency cost is anticipated at $215,400. 2.1.10 Authority Administration Cost Actual eligible costs incurred by the OCBRA are included in this plan as an eligible expense as an annual local-only capture fee of $4,000. These expenses will be reimbursed with local tax increment revenues only and are estimated to total up to $92,000. 2.1.11 Local Brownfield Revolving Fund The OCBRA intends to capture tax increments for deposits in the LBRF for an estimated five years, or as allowed by the statute. This capture is estimated to be up to $356,988. 2.2 Summary of Eligible Activities Environmental Activities Pre-approved environmental costs are anticipated to be reimbursed through a Brownfield Plan using both school and non-school tax increment revenues. Non-Environmental Activities Because the City of Pontiac is a Qualified Local Governmental Unit (“QLGU”) and because the development is “Housing Property” as defined by Act 381, additional non-environmental costs defined in Section 2(o)(ii) of Act 381 can be reimbursed through a Brownfield Plan. This plan will provide for reimbursement of eligible infrastructure improvements, building demolition, site demolition, site preparation, a financing gap associated with the development of housing for income-qualified households, and the development of the Brownfield Plan and Act 381 Work Plan costs. It is anticipated that a MSHDA Act 381 Work Plan will be pursued, and upon approval, these costs will be reimbursed with school and non-school tax increment revenues. Authority Expenses Eligible administrative costs incurred by the OCBRA are included in this plan as Brownfield Plan/Work Plan Implementation for $50,000, using captured state and local taxes. The plan also includes OCBRA administration as an eligible expense as an annual local-only capture fee of $4,000, estimated to total $92,000. Contingencies A 15% contingency on future costs is included on public infrastructure, building demolition, site demolition, and site preparation activities to cover unexpected cost overruns encountered during construction. 2.3 Estimate of Captured Taxable Value and Tax Increment Revenues The initial taxable value will be the 2024 taxable value, $0. An estimate of the captured taxable value for this redevelopment by year is depicted in Table 2. This plan captures all available tax increment revenues, including real and personal property tax increment revenues. November 21, 2024 Fishbeck | Page 5 Z:\2023\231211\WORK\REPT\CARLISLE TOWNHOMES PONTIAC\REVISED PLAN NOVEMBER 2024\ACT 381 BP_CARLISLE TOWNHOMES_OAKLAND COUNTY BRA_2024_1121.DOCX Project activities will be initiated in the spring of 2025. It is anticipated that the new construction will be completed by the end of 2025. Tax increment revenue collection will start within five years of the adoption of this plan and is anticipated to begin as early as 2026. Future taxable value estimates have been derived through communication with the local assessor, using the redevelopment information provided by the Developer. After the completion of the project, the projected taxable value is estimated at $2,037,500. Reimbursements will be made on the actual tax increment that is realized. The estimated captured taxable value for this redevelopment by year and in aggregate for each taxing jurisdiction is depicted in tabular form (Table 2). Once eligible expenses are reimbursed, the OCBRA may capture up to five full years of the tax increment and deposit the revenues into an LBRF or an amount not to exceed the total cost of eligible activities. The OCBRA intends to capture tax increments for deposits in the LBRF for an estimated five years. The plan also includes an annual local-only capture fee of $4,000 for administrative and operating expenses of the OCBRA. A summary of the estimated reimbursement schedule and the amount of capture by year and in aggregate is presented in Table 3. 2.4 Method of Financing and Description of Advances Made by the Municipality The eligible activities contemplated under this plan will be financed by the Developer, as outlined in this plan and the accompanying development agreement. No advances from the city or county are anticipated at this time. 2.5 Maximum Amount of Note or Bonded Indebtedness At this time, there are no plans by the OCBRA to incur indebtedness to support the development of this site, but such plans could be made in the future to assist in the development if the OCBRA so chooses. 2.6 Duration of Brownfield Plan The OCBRA intends to begin the capture of tax increment in 2026. This plan will then remain in place for 24 years, or until the eligible activities have been fully reimbursed, and up to five full years of capture into the LBRF (not to exceed the cost of eligible activities), whichever occurs sooner. An analysis showing the reimbursement schedule is attached in Table 3. 2.7 Estimated Impact of Tax Increment Financing on Revenues of Taxing Jurisdictions An estimate of the impact of tax increment financing on the revenues of all taxing jurisdictions is illustrated in detail within Table 2. 2.8 Legal Description, Property Map, Statement of Qualifying Characteristics, and Personal Property The property area subject to this plan consists of one 3.8-acre parcel, located at 204 West New York Avenue in the City of Pontiac, Michigan, and adjoining public rights-of-way. The parcel ID for the Subject Property is 64-14-08-353-011. A map showing eligible property dimensions is attached in Figure 1. The legal description for the parcel is as follows: Parcel ID No.: 64-14-08-353-011 T3N, R10E, SEC 8 MARIMONT SUB LOTS 302 TO 314 INCL, ALSO LOTS 385 TO 400 INCL, ALSO THAT PART OF VAC 1/2 OF ALLEY ADJ TO SD LOT 302 9/27/89 COR The property is located in the City of Pontiac, a qualified local governmental unit pursuant to Act 381. The property qualifies as “eligible property” under Act 381 on the basis of meeting the definition of a “Housing November 21, 2024 Fishbeck | Page 6 Z:\2023\231211\WORK\REPT\CARLISLE TOWNHOMES PONTIAC\REVISED PLAN NOVEMBER 2024\ACT 381 BP_CARLISLE TOWNHOMES_OAKLAND COUNTY BRA_2024_1121.DOCX Property.” This Brownfield Plan does intend to capture tax increment revenues associated with personal property tax, if available. 2.9 Estimates of Residents and Displacement of Individuals/Families There are no residents or families residing at this property, and thus no residents, families, or individuals will be displaced by the project. 2.10 Plan for Relocation of Displaced Persons No persons reside on the eligible property. Therefore, this section is not applicable. 2.11 Provisions for Relocation Costs No persons reside on the eligible property. Therefore, this section is not applicable. 2.12 Strategy for Compliance with Michigan’s Relocation Assistance Law No persons reside on the eligible property. Therefore, this section is not applicable. 2.13 Other Material that the Authority or Governing Body Considers Pertinent This plan helps to offset the cost of infrastructure, demolition, site preparation, and development of housing financing subsidy associated with the redevelopment of the Subject Property and adjoining right-of-way through the reimbursement of eligible activities with the new tax increment generated by the new residential construction. The project will improve public infrastructure through the repaving of sidewalks, curbs, gutters, and road(s). The resulting project will increase affordable housing opportunities and increase the tax base of the city. The project is also supported by a 4% federal Low-Income Housing Tax Credit (LIHTC). Figures PROJECT SITE 1 WISCONSIN INDIANA OHIO LAKE ERIE L A K E H U R O N L A K E M IC H IG A N LAKE SUPERIOR ILLINOIS W ATKINSLAKE LOON LAKE SCOTT SILVER ANGELUS OAKLAND JUDAH LAKE LAKE LAKE LAKE LAKE CLINTON G A L L O W A Y SASHAWBAW LAKE ANGELUS T4N,R10E WAT E R F O R D TWP. PONTIAC 27 22 26 24 25 23 26 35 36 31 32 33 34 2 1 6 5 87 12 11 15 14 13 18 17 3 4 9 10 16 15 22 2120 30 27 28 29 CAS S L A KE RD. ELIZABETH LAKE RD. PONTIAC LAKE RD. S C O T T LAKE R D . B AL DWIN RD. J OS LYN AVE. UNIVERSITY DR. WALTON BLVD. TAYLOR RD. COLLIER RD. ANGELUS RD. MORGAN RD. GREGORY RD. R O H R RD. MANN RD. JUDAH RD. BROWN RD.GI DDINGS R D . 19 RIVER LAKE MORGAN LAKE MUD LAKE CARPENTER SCHOOLHOUSE LAKE WORMER LK. MOHAWK LK. LAKE MORGAN SILVER LAKEUPPER LAKEGENEVA OSMUN LAKE LAKE TERRY LAKE HARRIS SASHABAW RD. WATERFORD TWP.INDEPENDENCE TWP. C R. G.T.W. RR G.T.W. RR CITY OF AUBURN HILLS CITY OF AUBURN HILLS LAKE FIDDLE OSMUN LAKE W ATKINS LAKE SCOTT LAKE SILVER LAKE LAKE ANGELUS LAKE OAKLAND JUDAH LAKEMORGAN LAKE MUD LAKE CARPENTER LAKE SCHOOLHOUSE LAKE WORMER LAKE MOHAWK LAKE UPPER SILVER LAKE MORGAN LAKE GENEVA LAKE TERRY LAKE HARRIS LAKE LOON LAKE FIDDLE LAKE PONTIAC LAKE ANGELUS T4N,R10E 75 59 10 PROJECT NO. FIGURE No. 231211 MAPTECH© U.S. TERRAIN SERIES™ ®MAPTECH©, INC. 606-433-8500 LAURIUM, MICHIGAN USGS 7.5 MINUTE TOPOGRAPHIC QUADRANGLE MAPSSOURCE: LOCATION MAP CARLISLE TOWNHOMES PONTIAC, MI 48340 204 W NEW YORK AVE. 0 0 0 0 0 0 A A A A A A F i l e : A A . d g n M o d e l : L o c a t i o n M a p 0 500 1000 2000 4000 SCALE 1" = 2000' PONTIAC, MICHIGAN OAKLAND COUNTY T 3 N. R. 10 E. SHOULD NOT BE USED TO ESTABLISH PROPERTY BOUNDARY LOCATION IN THE FIELD. ARE BASED ON AVAILABLE FURNISHED INFORMATION AND ARE APPROXIMATE ONLY AND THIS IS NOT A PROPERTY BOUNDARY SURVEY, PROPERTY BOUNDARIES SHOWN ON THIS MAP NOTE: 2010203060 SCALE 1" = 60' 120 PARCEL #14-08-353-011 W CHICAGO AVE W NEW YORK AVE W W AL T ON B L VD C A R L I S L E S T APPROXIMATE PROPERTY BOUNDARY A P P R O X I M A T E P R O P E R T Y B O U N D A R Y APPROXIMATE PROPERTY BOUNDARY AP P R O XI M A T E P R OP E R T Y B O U N D A R Y PROJECT NO. 231211 0 0 0 0 0 0 A A A A A A F i l e : M o d e l : FIGURE No. SITE PLAN CARLISLE TOWNHOMES PONTIAC, MI 48340 204 W NEW YORK AVE. SHOULD NOT BE USED TO ESTABLISH PROPERTY BOUNDARY LOCATION IN THE FIELD. ARE BASED ON AVAILABLE FURNISHED INFORMATION AND ARE APPROXIMATE ONLY AND THIS IS NOT A PROPERTY BOUNDARY SURVEY, PROPERTY BOUNDARIES SHOWN ON THIS MAP NOTE: 3010203060 SCALE 1" = 60' 120 PARCEL #14-08-353-011 W CHICAGO AVE W NEW YORK AVE W W ALT ON B L VD C A R L I S L E S T APPROXIMATE PROPERTY BOUNDARY A P P R O X I M A T E P R O P E R T Y B O U N D A R Y APPROXIMATE PROPERTY BOUNDARY AP P R OXI M A T E P R OP E R T Y B O UND A R Y PROJECT NO. 231211 0 0 0 0 0 0 A A A A A A F i l e : M o d e l : FIGURE No. FUTURE LOTS SITE PLAN w/ CARLISLE TOWNHOMES PONTIAC, MI 48340 204 W NEW YORK AVE. Community Building & One Home Tables Table 1 – Summary of Eligible Activities EGLE Eligible Activities Costs and Schedule EGLE Eligible Activities Cost Completion Season/Year Department Specific Activities $11,825 2023 Phase I & II Environmental Site Assessment $3,000 Pre-Demolition Hazardous Materials Building Survey $8,825 EGLE Eligible Activities Subtotal $11,825 Contingency (0%) $0 Interest (0%) $0 EGLE Eligible Activities Total Costs $11,825 MSHDA Eligible Activities Costs and Schedule MSHDA Eligible Activities Cost Completion Season/Year Public Infrastructure $384,750 2025 Roads $230,500 Sidewalks $28,500 Storm Sewers $125,750 Building Demolition $800,000 2025 Building Demolition/Deconstruction $800,000 Site Demolition $115,000 2025 Curb and Gutter Removal $95,000 Other: removal of abandoned utilities, site concrete, etc. $20,000 Site Preparation $136,250 2025 Land Balancing $95,000 Staking $14,250 Soft Costs $27,000 Development of Housing Financing Gap $228,000 2025-2050 Total Housing Subsidy $228,000 MSHDA Eligible Activities Subtotal $1,664,000 Contingency (15%)* $215,400 Interest (0%) $0 Brownfield Plan/Work Plan Preparation (including City of Pontiac fee) $22,500 Brownfield Plan/Work Plan Implementation (OCBRA Expense) $50,000 MSHDA Eligible Activities Total Costs $1,951,900 *Contingency is not calculated on the Development of Housing Financing Gap. Local-Only Eligible Activities Costs and Schedule Local-Only Eligible Activities Cost Completion Season/Year OCBRA Administration Fee ($4,000/year) $92,000 2025–2050 Local-Only Eligible Activities Subtotal $92,000 Contingency (0%) $0 Interest (0%) $0 Local-Only Eligible Activities Total Costs $92,000 Total Plan Cost: EGLE Eligible Activities: $ 11,825 MSHDA Eligible Activities: $ 1,951,900 Local-Only Eligible Activities: $ 92,000 Eligible Activities Total: $ 2,055,725 Local Brownfield Revolving Fund: $ 356,988 Plan Total: $ 2,412,713 Tax Increment Revenue Capture Estimates Carlisle Townhomes 204 W New York Ave Pontiac, Michigan November 2024 Estimated Taxable Value (TV) Increase Rate: 1% increase per year Plan Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 TOTAL Calendar Year 2025* 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 *Base Taxable Value -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Estimated New TV -$ 2,037,500$ 2,057,875$ 2,078,454$ 2,099,238$ 2,120,231$ 2,141,433$ 2,162,847$ 2,184,476$ 2,206,321$ 2,228,384$ 2,250,668$ 2,273,174$ 2,295,906$ 2,318,865$ 2,342,054$ 2,365,474$ 2,389,129$ 2,413,020$ 2,437,150$ 2,461,522$ 2,486,137$ 2,510,999$ 2,536,109$ 2,561,470$ -$ Incremental Difference (New TV - Base TV)-$ 2,037,500$ 2,057,875$ 2,078,454$ 2,099,238$ 2,120,231$ 2,141,433$ 2,162,847$ 2,184,476$ 2,206,321$ 2,228,384$ 2,250,668$ 2,273,174$ 2,295,906$ 2,318,865$ 2,342,054$ 2,365,474$ 2,389,129$ 2,413,020$ 2,437,150$ 2,461,522$ 2,486,137$ 2,510,999$ 2,536,109$ 2,561,470$ -$ School Capture Millage Rate State Education Tax (SET) 6.0000 -$ 12,225$ 12,347$ 12,471$ 12,595$ 12,721$ 12,849$ 12,977$ 13,107$ 13,238$ 13,370$ 13,504$ 13,639$ 13,775$ 13,913$ 14,052$ 14,193$ 14,335$ 14,478$ 14,623$ 14,769$ 14,917$ 15,066$ 15,217$ 15,369$ 329,751$ School Operating Tax 18.0000 -$ 36,675$ 37,042$ 37,412$ 37,786$ 38,164$ 38,546$ 38,931$ 39,321$ 39,714$ 40,111$ 40,512$ 40,917$ 41,326$ 41,740$ 42,157$ 42,579$ 43,004$ 43,434$ 43,869$ 44,307$ 44,750$ 45,198$ 45,650$ 46,106$ 989,252$ School Total 24.0000 -$ 48,900$ 49,389$ 49,883$ 50,382$ 50,886$ 51,394$ 51,908$ 52,427$ 52,952$ 53,481$ 54,016$ 54,556$ 55,102$ 55,653$ 56,209$ 56,771$ 57,339$ 57,912$ 58,492$ 59,077$ 59,667$ 60,264$ 60,867$ 61,475$ 1,319,002$ Local Capture Millage Rate COUNTY OPERATING 3.9686 -$ 8,086$ 8,167$ 8,249$ 8,331$ 8,414$ 8,498$ 8,583$ 8,669$ 8,756$ 8,844$ 8,932$ 9,021$ 9,112$ 9,203$ 9,295$ 9,388$ 9,481$ 9,576$ 9,672$ 9,769$ 9,866$ 9,965$ 10,065$ 10,165$ 218,108$ OIS ALLOCATED 0.1881 -$ 383$ 387$ 391$ 395$ 399$ 403$ 407$ 411$ 415$ 419$ 423$ 428$ 432$ 436$ 441$ 445$ 449$ 454$ 458$ 463$ 468$ 472$ 477$ 482$ 10,338$ OIS VOTED 2.9777 -$ 6,067$ 6,128$ 6,189$ 6,251$ 6,313$ 6,377$ 6,440$ 6,505$ 6,570$ 6,635$ 6,702$ 6,769$ 6,837$ 6,905$ 6,974$ 7,044$ 7,114$ 7,185$ 7,257$ 7,330$ 7,403$ 7,477$ 7,552$ 7,627$ 163,650$ OCC VOTED 1.4891 -$ 3,034$ 3,064$ 3,095$ 3,126$ 3,157$ 3,189$ 3,221$ 3,253$ 3,285$ 3,318$ 3,351$ 3,385$ 3,419$ 3,453$ 3,488$ 3,522$ 3,558$ 3,593$ 3,629$ 3,665$ 3,702$ 3,739$ 3,777$ 3,814$ 81,839$ CITY OPERATING 12.0000 -$ 24,450$ 24,695$ 24,941$ 25,191$ 25,443$ 25,697$ 25,954$ 26,214$ 26,476$ 26,741$ 27,008$ 27,278$ 27,551$ 27,826$ 28,105$ 28,386$ 28,670$ 28,956$ 29,246$ 29,538$ 29,834$ 30,132$ 30,433$ 30,738$ 659,501$ CAP IMP 1.3639 -$ 2,779$ 2,807$ 2,835$ 2,863$ 2,892$ 2,921$ 2,950$ 2,979$ 3,009$ 3,039$ 3,070$ 3,100$ 3,131$ 3,163$ 3,194$ 3,226$ 3,259$ 3,291$ 3,324$ 3,357$ 3,391$ 3,425$ 3,459$ 3,494$ 74,958$ SANITATION 2.7281 -$ 5,559$ 5,614$ 5,670$ 5,727$ 5,784$ 5,842$ 5,900$ 5,959$ 6,019$ 6,079$ 6,140$ 6,201$ 6,263$ 6,326$ 6,389$ 6,453$ 6,518$ 6,583$ 6,649$ 6,715$ 6,782$ 6,850$ 6,919$ 6,988$ 149,932$ YOUTH CENTER 1.4519 -$ 2,958$ 2,988$ 3,018$ 3,048$ 3,078$ 3,109$ 3,140$ 3,172$ 3,203$ 3,235$ 3,268$ 3,300$ 3,333$ 3,367$ 3,400$ 3,434$ 3,469$ 3,503$ 3,538$ 3,574$ 3,610$ 3,646$ 3,682$ 3,719$ 79,794$ LIBRARY 0.9679 -$ 1,972$ 1,992$ 2,012$ 2,032$ 2,052$ 2,073$ 2,093$ 2,114$ 2,135$ 2,157$ 2,178$ 2,200$ 2,222$ 2,244$ 2,267$ 2,290$ 2,312$ 2,336$ 2,359$ 2,383$ 2,406$ 2,430$ 2,455$ 2,479$ 53,194$ SENIOR SERVICES 0.4839 -$ 986$ 996$ 1,006$ 1,016$ 1,026$ 1,036$ 1,047$ 1,057$ 1,068$ 1,078$ 1,089$ 1,100$ 1,111$ 1,122$ 1,133$ 1,145$ 1,156$ 1,168$ 1,179$ 1,191$ 1,203$ 1,215$ 1,227$ 1,239$ 26,594$ SINKING FUND 0.7980 -$ 1,626$ 1,642$ 1,659$ 1,675$ 1,692$ 1,709$ 1,726$ 1,743$ 1,761$ 1,778$ 1,796$ 1,814$ 1,832$ 1,850$ 1,869$ 1,888$ 1,907$ 1,926$ 1,945$ 1,964$ 1,984$ 2,004$ 2,024$ 2,044$ 43,857$ COUNTY PK & REC 0.3431 -$ 699$ 706$ 713$ 720$ 727$ 735$ 742$ 749$ 757$ 765$ 772$ 780$ 788$ 796$ 804$ 812$ 820$ 828$ 836$ 845$ 853$ 862$ 870$ 879$ 18,856$ HCMA 0.2070 -$ 422$ 426$ 430$ 435$ 439$ 443$ 448$ 452$ 457$ 461$ 466$ 471$ 475$ 480$ 485$ 490$ 495$ 499$ 504$ 510$ 515$ 520$ 525$ 530$ 11,376$ OAKLAND TRANSIT 0.9500 -$ 1,936$ 1,955$ 1,975$ 1,994$ 2,014$ 2,034$ 2,055$ 2,075$ 2,096$ 2,117$ 2,138$ 2,160$ 2,181$ 2,203$ 2,225$ 2,247$ 2,270$ 2,292$ 2,315$ 2,338$ 2,362$ 2,385$ 2,409$ 2,433$ 52,211$ Local Total 29.9173 -$ 60,956$ 61,566$ 62,182$ 62,804$ 63,432$ 64,066$ 64,707$ 65,354$ 66,007$ 66,667$ 67,334$ 68,007$ 68,687$ 69,374$ 70,068$ 70,769$ 71,476$ 72,191$ 72,913$ 73,642$ 74,379$ 75,122$ 75,874$ 76,632$ 1,644,208$ Non-Capturable Millages Millage Rate PONTIAC SCH DEBT 2.0000 -$ 4,075$ 4,116$ 4,157$ 4,198$ 4,240$ 4,283$ 4,326$ 4,369$ 4,413$ 4,457$ 4,501$ 4,546$ 4,592$ 4,638$ 4,684$ 4,731$ 4,778$ 4,826$ 4,874$ 4,923$ 4,972$ 5,022$ 5,072$ 5,123$ 109,917$ ZOO AUTHORITY 0.0945 -$ 193$ 194$ 196$ 198$ 200$ 202$ 204$ 206$ 208$ 211$ 213$ 215$ 217$ 219$ 221$ 224$ 226$ 228$ 230$ 233$ 235$ 237$ 240$ 242$ 5,194$ ART INSTITUTE 0.1945 -$ 396$ 400$ 404$ 408$ 412$ 417$ 421$ 425$ 429$ 433$ 438$ 442$ 447$ 451$ 456$ 460$ 465$ 469$ 474$ 479$ 484$ 488$ 493$ 498$ 10,689$ Non-Capturable Total 2.2890 -$ 4,664$ 4,710$ 4,758$ 4,805$ 4,853$ 4,902$ 4,951$ 5,000$ 5,050$ 5,101$ 5,152$ 5,203$ 5,255$ 5,308$ 5,361$ 5,415$ 5,469$ 5,523$ 5,579$ 5,634$ 5,691$ 5,748$ 5,805$ 5,863$ 125,800$ Total Tax Increment Revenue (TIR) Available for Capture -$ 109,856$ 110,955$ 112,065$ 113,185$ 114,317$ 115,460$ 116,615$ 117,781$ 118,959$ 120,148$ 121,350$ 122,563$ 123,789$ 125,027$ 126,277$ 127,540$ 128,815$ 130,104$ 131,405$ 132,719$ 134,046$ 135,386$ 136,740$ 138,108$ 2,963,210$ NOTES: Millages are 2023 Summer and Winter *Capture is anticipated to be delayed until 2026 Tax Increment Revenue Capture Estimates Carlisle Townhomes 204 W New York Ave Pontiac, Michigan November 2024 Developer Maximum Reimbursement Proportionality School & Local Taxes Local-Only Taxes Total Estimated Capture State 44.5%874,105$ -$ 874,105$ Administrative Fees 92,000$ Local 55.5%1,089,620$ -$ 1,089,620$ State Brownfield Redevelopment Fund 127,207$ TOTAL Local Brownfield Revolving Fund 356,988$ EGLE 0.6%11,825$ -$ 11,825$ MEDC 0.0%-$ -$ -$ MSHDA 99.4%1,951,900$ -$ 1,951,900$ 1 (Capture Delay)2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 TOTAL Total State Incremental Revenue -$ 48,900$ 49,389$ 49,883$ 50,382$ 50,886$ 51,394$ 51,908$ 52,427$ 52,952$ 53,481$ 54,016$ 54,556$ 55,102$ 55,653$ 56,209$ 56,771$ 57,339$ 57,912$ 58,492$ -$ -$ -$ -$ 1,017,653$ State Brownfield Redevelopment Fund (50% of SET) -$ 6,113$ 6,174$ 6,235$ 6,298$ 6,361$ 6,424$ 6,489$ 6,553$ 6,619$ 6,685$ 6,752$ 6,820$ 6,888$ 6,957$ 7,026$ 7,096$ 7,167$ 7,239$ 7,311$ -$ -$ -$ -$ 127,207$ State TIR Available for Reimbursement -$ 42,788$ 43,215$ 43,648$ 44,084$ 44,525$ 44,970$ 45,420$ 45,874$ 46,333$ 46,796$ 47,264$ 47,737$ 48,214$ 48,696$ 49,183$ 49,675$ 50,172$ 50,673$ 51,180$ -$ -$ -$ -$ 890,446$ Total Local Incremental Revenue -$ 60,956$ 61,566$ 62,182$ 62,804$ 63,432$ 64,066$ 64,707$ 65,354$ 66,007$ 66,667$ 67,334$ 68,007$ 68,687$ 69,374$ 70,068$ 70,769$ 71,476$ 72,191$ 72,913$ 73,642$ 74,379$ 75,122$ 75,874$ 1,567,576$ BRA Administrative Fee (5%) -$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 92,000$ Local TIR Available for Reimbursement -$ 56,956$ 57,566$ 58,182$ 58,804$ 59,432$ 60,066$ 60,707$ 61,354$ 62,007$ 62,667$ 63,334$ 64,007$ 64,687$ 65,374$ 66,068$ 66,769$ 67,476$ 68,191$ 68,913$ 69,642$ 70,379$ 71,122$ 71,874$ 1,475,576$ Total State & Local TIR Available 99,744$ 100,781$ 101,829$ 102,888$ 103,956$ 105,036$ 106,126$ 107,228$ 108,340$ 109,463$ 110,598$ 111,744$ 112,901$ 114,070$ 115,251$ 116,444$ 117,648$ 118,864$ 120,093$ 69,642$ 70,379$ 71,122$ 71,874$ 2,366,022$ 50,000$ 50,000$ 47,460$ 44,894$ 42,302$ 39,682$ 37,035$ 34,360$ 31,658$ 28,928$ 26,170$ 23,382$ 20,566$ 17,721$ 14,847$ 11,942$ 9,008$ 6,043$ 3,047$ 21$ -$ -$ -$ -$ -$ -$ Implementation Costs 50,000$ 50,000$ 50,000$ 47,460$ 44,894$ 42,302$ 39,682$ 37,035$ 34,360$ 31,658$ 28,928$ 26,170$ 23,382$ 20,566$ 17,721$ 14,847$ 11,942$ 9,008$ 6,043$ 3,047$ 21$ -$ -$ -$ -$ State Tax Reimbursement 22,256$ -$ 1,089$ 1,100$ 1,111$ 1,122$ 1,134$ 1,145$ 1,156$ 1,168$ 1,180$ 1,192$ 1,203$ 1,215$ 1,228$ 1,240$ 1,252$ 1,265$ 1,277$ 1,290$ 21$ -$ -$ -$ -$ 21,390$ Local Tax Reimbursement 27,744$ -$ 1,450$ 1,466$ 1,481$ 1,497$ 1,513$ 1,529$ 1,546$ 1,562$ 1,579$ 1,596$ 1,613$ 1,630$ 1,647$ 1,665$ 1,682$ 1,700$ 1,718$ 1,736$ -$ -$ -$ -$ -$ 28,610$ Total Reimbursement Balance 50,000$ 47,460$ 44,894$ 42,302$ 39,682$ 37,035$ 34,360$ 31,658$ 28,928$ 26,170$ 23,382$ 20,566$ 17,721$ 14,847$ 11,942$ 9,008$ 6,043$ 3,047$ 21$ -$ -$ -$ -$ -$ 50,000$ Total Annual Reimbursement -$ 2,540$ 2,566$ 2,593$ 2,620$ 2,647$ 2,674$ 2,702$ 2,730$ 2,759$ 2,787$ 2,816$ 2,845$ 2,875$ 2,904$ 2,935$ 2,965$ 2,996$ 3,027$ 21$ -$ -$ -$ -$ 50,000$ Reimbursement Balance 1,913,725$ 1,913,725$ 1,816,521$ 1,718,305$ 1,619,069$ 1,518,801$ 1,417,491$ 1,315,130$ 1,211,706$ 1,107,208$ 1,001,627$ 894,951$ 787,169$ 678,270$ 568,244$ 457,078$ 344,761$ 231,282$ 116,630$ 792$ -$ -$ -$ -$ -$ -$ MSHDA Non-Environmental Costs 1,901,900$ 1,901,900$ 1,901,900$ 1,805,296$ 1,707,688$ 1,609,065$ 1,509,416$ 1,408,733$ 1,307,004$ 1,204,219$ 1,100,367$ 995,438$ 889,421$ 782,305$ 674,079$ 564,732$ 454,253$ 342,631$ 229,853$ 115,909$ 787$ -$ -$ -$ -$ State Tax Reimbursement 846,585$ -$ 41,440$ 41,855$ 42,273$ 42,696$ 43,123$ 43,554$ 43,990$ 44,430$ 44,874$ 45,323$ 45,776$ 46,234$ 46,696$ 47,163$ 47,635$ 48,111$ 48,592$ 49,078$ 787$ -$ -$ -$ -$ 813,630$ Local Tax Reimbursement 1,055,315$ -$ 55,163$ 55,754$ 56,350$ 56,952$ 57,560$ 58,175$ 58,795$ 59,422$ 60,055$ 60,694$ 61,340$ 61,992$ 62,651$ 63,316$ 63,988$ 64,666$ 65,352$ 66,044$ -$ -$ -$ -$ -$ 1,088,270$ Total MSHDA Reimbursement Balance 1,901,900$ 1,805,296$ 1,707,688$ 1,609,065$ 1,509,416$ 1,408,733$ 1,307,004$ 1,204,219$ 1,100,367$ 995,438$ 889,421$ 782,305$ 674,079$ 564,732$ 454,253$ 342,631$ 229,853$ 115,909$ 787$ -$ -$ -$ -$ -$ 1,901,900$ EGLE Environmental Costs 11,825$ 11,825$ 11,825$ 11,224$ 10,617$ 10,004$ 9,385$ 8,759$ 8,126$ 7,487$ 6,841$ 6,189$ 5,530$ 4,864$ 4,191$ 3,511$ 2,824$ 2,130$ 1,429$ 721$ 5$ -$ -$ -$ -$ -$ State Tax Reimbursement 5,264$ -$ 258$ 260$ 263$ 265$ 268$ 271$ 274$ 276$ 279$ 282$ 285$ 287$ 290$ 293$ 296$ 299$ 302$ 305$ 5$ -$ -$ -$ -$ 5,059$ Local Tax Reimbursement 6,561$ -$ 343$ 347$ 350$ 354$ 358$ 362$ 366$ 369$ 373$ 377$ 381$ 385$ 390$ 394$ 398$ 402$ 406$ 411$ -$ -$ -$ -$ -$ 6,766$ Total EGLE Reimbursement Balance 11,825$ 11,224$ 10,617$ 10,004$ 9,385$ 8,759$ 8,126$ 7,487$ 6,841$ 6,189$ 5,530$ 4,864$ 4,191$ 3,511$ 2,824$ 2,130$ 1,429$ 721$ 5$ -$ -$ -$ -$ -$ 11,825$ Total Annual Reimbursement -$ 97,204$ 98,215$ 99,236$ 100,268$ 101,310$ 102,362$ 103,424$ 104,497$ 105,581$ 106,676$ 107,782$ 108,899$ 110,027$ 111,166$ 112,317$ 113,479$ 114,652$ 115,838$ 792$ -$ -$ -$ -$ 1,913,725$ LBRF Deposits *-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 73,972$ 143,614$ 213,992$ 285,115$ 356,988$ State Tax Capture 5,059$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 5,059$ -$ -$ -$ -$ 5,059$ Local Tax Capture 1,958,666$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 68,913$ 69,642$ 70,379$ 71,122$ 71,874$ 351,929$ Total LBRF Capture -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 73,972$ 69,642$ 70,379$ 71,122$ 71,874$ 356,988$ * Up to five years of capture for LBRF Deposits after eligible activities are reimbursed. May be taken from EGLE & Local TIR only. LOCAL BROWNFIELD REVOLVING FUND 24 OAKLAND COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY Beginning Balance DEVELOPER Beginning Balance Estimated Total Years of Plan: Appendix 1 Appendix 2 Appendix 3 MSHDA Total Housing Subsidy (THS) Calculation The Michigan State Housing Development Authority provides a formula for determining the maximum allowable Total Housing Subsidy (THS) for MSHDA-supported brownfield plans. The formula provides a generous subsidy (for Carlisle Townhomes in Pontiac, the formula would result in a $13.8 million housing subsidy), but exceeds the amount actually required to build and operate Carlisle Townhomes. According to the developer, the project needs $1,913,725 for the project to be built. Much of this amount – 42% of the developer’s proposed eligible activities – is the demolition of the obsolete former school building. Only 12%, $228,000, is the MSHDA-eligible funding gap. Other costs associated with operating and maintaining the Carlisle Townhomes and community space will be reduced with other incentives. The $228,000 was determined by using the developer’s known budget shortfall, $1,913,725, and reducing it by the other eligible activities. The balance of $228,000 needed to construct Carlisle Townhomes is the funding gap. $1,913,725 is needed to construct the project. - $ 11,825 environmental costs - $384,750 public infrastructure - $800,000 building demolition - $115,000 site demolition - $136,250 site preparation - $ 22,500 brownfield plan, work plan, implementation* - $215,400 contingency $228,000 funding gap *Does not include the $50,000 Brownfield Plan Implementation costs to be incurred by the Oakland County Brownfield Redevelopment Authority (OCBRA). Rents at Carlisle Townhomes will be priced for families making about 60% of Oakland County’s Area Median Income, or a maximum of $51,765. Rents will range from $1,039 to $1,334 for a two-bedroom, two-bath home. By contrast, current rents at other two+ bedroom homes in Pontiac without subsidies are around $1,500. To determine the rent gap, we used an average of $1,300 rent at Carlisle Townhomes and compared it to the $1,500 average local rent. This results in a rent gap of $200 per home, per month. For 19 townhomes, that’s a gap of $3,800 a month ($200 x 19 homes). In the course of a year, the loss for the developers, compared to other local rents, is $45,600 ($3,800 loss per month x 12 months). In five years, $45,600 a year totals $228,000. Review of Total Housing Subsidy for reasonableness among all other activities. The amount proposed for funding gap eligible activity is $228,000. Total eligible activities included in the Brownfield Plan, and percentage of total: Eligible Activity Cost Percent of developer reimbursement total Pre-Approved EGLE $11,825 1% Public Infrastructure $384,750 20% Building Demolition $800,000 42% Site Demolition $115,000 6% Site Preparation $136,250 7% Funding Gap $228,000 12% Brownfield/Work Plan ($22,500 reimbursed to the developer, $50,000 reimbursed to the OCBRA) $72,500 Developer’s share 1% Contingency $215,400 11% OCBRA Administration (5% of total) $92,000 OCBRA Local Brownfield Revolving Fund $356,988 TOTAL $2,412,713