City Federation of Women’s organizations Redevelopment proposal 100 West Seneca Street Julianne...
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Transcript of City Federation of Women’s organizations Redevelopment proposal 100 West Seneca Street Julianne...
City Federation of Women’s organizationsRedevelopment proposal
100 West Seneca Street
Julianne KwonJohn NorwoodChris PersheffPrajna Rao Affordable Housing – CRP 643 – April 23, 2008
Current Space
• Desire for income to break even on operation expenses– Kitchen; auditorium; office spaces
• Building systems/design out of date• Excellent location• Underutilized
Assumptions
• Desire to maximize value for potential developer
• Affordable housing element• Women’s Federation – decrease in mgmt. of
site; “just cashing the check”• Context sensitivity – Location and massing• City of Ithaca hopes for the site/area
Shaping proposal to IDA “benefits” for Maximum Tax Rebate
IDA Downtown Density Incentive Program Policy
• Community Benefits (handout)– Highlights:
• Project encourages and generates pedestrian activity.• Project includes housing.• Project provides affordable housing (%median number) • Project includes mixed-income housing (within the same project). • Project is constructed on a vacant or underutilized site.• Project makes efficient use of infrastructure.• Project will generate additional property taxes.• Project will generate additional sales taxes.• Project includes public amenities.
• Must be able to 6 more community benefits to qualify for benefits
Additional Subsidies (NYS)
In order of relevance to proposed project (Handout):
• NYSHFA 80/20 program• Urban Initiatives Program
– Purpose of program dovetails with IDA program
Site Plan
Vision for site: Four to five story mixed-use (ground floor retail) with residential units above retail.
Pro-forma analysis
Project Buildout
• Hard costs - $3.825 M• Demolition - $45 k • Soft costs - $1.147 M• Contingencies - $250 k• Subsidy - $165 k• Total Project Cost -
$5.104 M
• Hard costs - $3.098 M• Demolition - $45 k• Soft costs – $929 k• Contingencies – $203 k• Subsidy – $165 k• Total Project Cost - $4.111
M
Office Renovations Without Office Renovations
Financing assumptions
• Construction loan: 75% LTV, 6.5% interest only for two years.
• Take-out loan: 80% LTV, 5.5% fully amortized over thirty years.
• Initial and ending valuations are based on 8.5% cap rate.
• Rents/expenses inflate 2.5% each year
Market Rents
• New Retail – $23/sf/yr• Existing Retail – $20/sf/yr• Renovated Office – $16/sf/yr• Unrenovated Office – $6/sf/yr• Market-rate Residential – $15/sf/yr• Affordable Residential –$12/sf/yr
10-Year Hold Results
• Office renovation scenario: 3% return on a $957 k equity contribution
• No renovation scenario: 15% return on $770 k equity contribution
• Majority of return made upon refinance• Recommendation
Concept
Corner of Seneca and Cayuga Street
Seneca Street
Cayuga Street
Thank you!Sources: Tompkins County Area Development www.tcad.orgIDA Downtown Density Incentive Program PolicyIDA Downtown Density Project Application
www.nyhomes.org“NYS Housing Finance Agency Releases Revised 80/20 Criteria”Tax-Exempt Bond Financing for New York City Multifamily Developments