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South Bend Redevelopment Commission <br />Regular Meeting —June 14, 2011 <br />Mr. Sielatycki said that the total cost for the <br />project is $15M. That is not sustainable by <br />private equity investment only. That is why <br />they will be looking at the NMTC program <br />and historic tax credits (HTC), and then local <br />TIF and tax abatement. <br />Ms. King asked what kind of use the <br />Metropolitan Center is. Mr. Sielatycki <br />responded that it is currently under <br />construction, but will also be mixed use. It <br />has 24 apartments on four floors, 20 of which <br />will be market rate for income qualified <br />residents, and 10,000 sq. ft. of retail space. <br />Ms. King asked now many of the projects <br />they used the NMTC for have been for <br />apartments. Mr. Sielatycki responded that <br />all of the seven projects that used both <br />NMTC and HTC included residential units. <br />Mr. Varner asked what portion of the <br />financing will be NMTC, HTC and TIF <br />funds. <br />Mr. Agostinelli responded that they create a <br />financial pro forma, estimating how much it <br />is going to cost to do the selective <br />demolition, the cost to reinforce the building, <br />then how much for the development itself. <br />Then they work backwards from there: what <br />financial incentives are available, what <br />federal, state and local programs are <br />available that could help fill that gap. That's <br />the approach they take. And, frankly, that's <br />why the purchase price is $5,000, because the <br />overall pro forma couldn't justify a bigger <br />purchase price. The NMTC program will <br />cover approximately 22 -23 %; the amount <br />HTC will provide depends on what it will be <br />spent it on. Mavcon doesn't really have a <br />feel for that. Mavcon expects the man hours <br />29 <br />