ABOUT US Frank Kass, Chairman Josiah Huber, Director Continental Real Estate DiPerna Advisors Multidisciplinary, nationwide Public finance advisory firm developer and builder of located in Columbus, OH with an commercial real estate projects emphasis on funding public headquartered in Columbus, OH. infrastructure for master planned developments. 1
CONTINENTIAL REAL ESTATE CO ARLINGTON GATEWAY P ARTNERSHIP P ROPOSAL TO C OLUMBUS C ITY S CHOOLS 30 ‐ year, 100% School TIF
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PROJECT FAST FACTS • Mixed ‐ Use Development Proposal • Corner of Lane Ave and North Star (+/ ‐ 3 acres) • City of Arlington / Columbus City Schools • Total Square footage of 800,000 • Residential (250,000 ft 2 ) • Office (133,000 ft 2 ) • Retail (50,000 ft 2 ) • Free Parking Garage (850 cars) – REASON FOR THE TIF PROPOSAL • Improvement of off ‐ site sewer, water and utility relocation. • The Project Site is currently developed and includes: • Half Price Books • Darron’s Furniture • Pizza Hut • Retail strip center 6 • 36 multi ‐ family apartments
RESIDENTAL DISCUSSION • Luxury Apartments targeted for the empty nester or millennial • 1 – 2 Bedroom(s) • ~1,000 ft 2 • No amenities for children • No expectation for families to live in the apartments much like the existing apartments at the The Lane. 7
PUBLIC IMPROVEMENTS Total Public Improvement Budget is approximately $27.5 million. Sources of Funds with TIF Sources of Funds without TIF Without the 30yr 100% School TIF, the project has a funding gap of $5.6 million which prevents the project from going forward. 8
INCREASE IN REVENUES TO CCS • Current taxes from Project Site = $116,000/year • Estimated tax value of Arlington Gateway* = $48,160,739 • Estimated CCS taxes on Arlington Gateway = $991,383 • Proposal ‐ 30 year, 100% School TIF • Developer pays CCS $422,000/year as payment in lieu of taxes (PILOT payment). Represents a 3.6X increase from the current taxes of $116,000/year. • Beginning in year 31, taxes to CCS = $991,383 9
BREAKDOWN OF CCS PORTION 10
CONCLUSION • If no redevelopment occurs on site, CCS will continue to receive $116,000/year, for a total of $3,480,000 over 30 years . • If CCS partners with Arlington Gateway, CCS will receive $422,000/year, for a total of $12,660,000 over 30 years . • Beginning in year 31, CCS will receive $991,383/year (for a total of $29,741,490 years 31 ‐ 60) . • Project Challenges: • With only 3 acres, any redevelopment on the site will require free structured parking which is about 7.5x more expensive than surface. • Rising interest rate and construction cost environment. • Since December 2015, the Federal Reserve has increased the Federal Funds rate 6 times with an outlook to raise the rate at least twice this year. • Steel tariffs, labor shortage, demand outpacing supply of labor. 11 • Existing businesses on site perform well. Expensive land.
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