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RIVERVIEW PARTNERS, LLC -...
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ROME RIVERVIEW PARTNERS, LLC
APPLICATION FOR
CITY OF ROME
TAX ALLOCATION DISTRICT #1
SUBMITTED TO THE
FLOYD COUNTY COMMISSION
OCTOBER 31, 2016
Project Description
The RiverPoint Apartment Homes will be the finest multifamily
residential development ever constructed in Rome/Floyd County,
featuring 124 one, two, and three bedroom units overlooking the
Oostanaula River and adjacent to State Mutual Stadium and Miracle
Field. RiverPoint will be EarthCraft certified and beautifully
landscaped, featuring significant lawn and open space areas and
amenities, including access from RiverPoint to the current pedestrian
network extending into downtown Rome.
RiverPoint: Planned Features & AmenitiesApartment features planned:
• Stainless appliances, granite countertops, and wood plank/tile flooring
• Nine foot ceilings
• Walk-in closets
• Wall-to-wall carpeting in all living areas
• Patios/balconies
• Double Elevator Access
Community amenities planned:
• Gated access and secured perimeter
• Individual secured garage parking & interior and exterior storage
• Clubhouse with conference rooms and meeting rooms
• Business center with Cyber Café
• Fitness center with separate Yoga area
• Saltwater resort style swimming pool with large pool deck
• Outdoor gazebos, arbors, and grilling stations
• Wood burning fire pits with seating
• Access to Oostanaula River pedestrian walkway
• Wireless Internet throughout
RiverPoint Site Plan 6.29 acres
RiverPoint Site Planwith Aerial Overlay
RiverPoint Architectural Rendering
RiverPoint Interior Finishes
RiverPoint Interior Finishes
RiverPoint Interior Finishes
RiverPoint Interior Finishes
RiverPoint Interior Finishes
RiverPoint Interior Finishes
RiverPoint Interior Finishes
RiverPoint: Market Analysis• Unique in Greater Rome (amenities, finishes, EarthCraft, etc.)
• No new significant multifamily built in Rome in the past decade to
serve middle to upper end of the market
• Confident the demand exists in Rome
• Our market study confirms market feasibility
• Projected some 50% of residents could come from outside Floyd
County
• Medical residents & professionals
• Married & Single professionals
• Empty Nesters
• Divorcees
• Impact on school system minimal. Based on the nearest comparable
multifamily development RiverPoint could add between 13-26
students to Rome City Schools.
• RiverPoint would be an actual recruitment tool for businesses and professional job seekers in our market.
RiverPoint: Total CostsConstruction Budget Summary
RiverPoint Apartment Homes Rome, Georgia
September 1, 2016
Total Projected Development Costs
Land 1,095,500$ *
Land Improvements 2,102,083$ *
Architecural Design Expenses & Fees 397,914$ *
Building Construction Costs per TuckerCraft Contract 14,183,725$ *
FF&E 232,124$
Offsite Improvements 262,135$ *
Legal Fees 80,000$ *
Financing Costs and Fees 806,690$ *
Construction Administrative Fees -$
Development Fees -$
Total 19,160,171$
*Denotes Eligible Costs for TAD Reimbursement
RiverPoint: Due Diligence Status Report• Market Feasibility Analysis
• Environmental Phase I
• Geotechnical Survey
• Wetlands Determination
• Water Quality Improvements
• Received CLOMR from FEMA
• Re-Zoning Completed: Urban Mixed Use
• Architectural, Engineering, Construction
• Numerous Cost Reduction Measures
(i.e. Value Engineering, NO Development Fees, etc.)
• Financing Status Report
• After rate lock, our pursuit expenditures > $500,000
• Tax Allocation District Assistance Final Step
RiverPoint: Economic Impacts• Total capital investment over $19.3 million (incl. road)
• Water and Sewer fees estimated at $40,000 annually
• $318,000 new road that we will dedicate to the City
• Numerous jobs created during 12-16 months of construction
• Millions spent with local sub-contractors and suppliers,
impacting local sales taxes
• Numerous service contracts with local businesses going
forward
• Four new full time jobs created upon opening with annual
payroll & benefits exceeding $100,000
• Earth Craft Certified, so improved operating and occupancy
efficiencies
• Potential for more than 300 residents
• Average annual HH income estimated to be between $80,000-
$100,000, or $10-$12 million of annual spending power
RiverPoint: Additional Community Impacts
• RiverPoint will expand the Tax Digest for the future.
• RiverPoint will be the foundation and catalyst for new
commercial growth in the area by bringing hundreds of new
residents with significant spending power within walking
distance of State Mutual Stadium, area restaurants, and
Riverside Professional Park.
• The Boulevard Master Plan allows for hotel, office, retail,
and additional restaurant uses, all bringing major investment,
jobs & tax revenues. Potential for $6-$20million near term.
• This corridor has the greatest potential for new growth and development in Rome and Floyd County today.
Boulevard Site Plan15.8 acres
Boulevard Master Plan+/- 28.2 acres
Boulevard Master Plan
RiverPoint: Overdue Taxpayer Return
• The City and County created Tax Allocation District #1 in 2005 to facilitate economic and community growth on this site.
• The Floyd County taxpayers have invested some $50 million in infrastructure to help bring growth to this area:
Riverside Parkway, Veteran’s Memorial By-Pass, State Mutual Stadium, Armuchee Connector, Rome Tennis Center
• Except for pioneers like Fuddruckers, Bella Roma, Three Rivers Club, & Riverside Professional Park, the majority of the property surrounding the Rome Braves Stadium has remained dormant.
• By supporting the RiverPoint project and joining us in a Public Private Partnership, the City of Rome and Floyd County can expand the Tax Digest and finally give the taxpayers a return on their huge investment in this corridor.
The Tool is Already in Place
RiverPoint: Feasibility Gap & TAD Request• Our requirement for investment risk/return is a minimum 8% return
on costs (ROC). • Our total costs will be $19.16 million, resulting in a feasibility gap of
approximately $6 million. ((Yr 2 Stabilized NOI/8%)-$19.16mm)• Amount of TAD #1 reimbursement initially requested: $3.6mm or
$360,000 per year for 10 years.• Amount of TAD#1 Reimbursement Approved by Rome
Redevelopment Agency & Rome City Commission: $3.3mm or
$220,000 per year for 15 years with NO interest.
• The ROC requirements are not estimated to be reached until Year 10
WITH the RRA & City approved reduced amount.• Given the quality of the project and our long term investment profile
we are still willing to take the development and investment risk. • But for the TAD contribution, the investment return requirement is
unachievable, thus the project is not feasible.The TAD #1 reimbursement would not commence until 2018.
RiverPoint: TAD #1 Feasibility
Amount of TAD #1 Reimbursement Approved by City: $3.3 million or
$220,000 per year for 15 years commencing in 2018
• City TAD#1 Special Fund Current balance = $ 100,000• City 2016 TAD # 1 Revenues = $ 312,800• City 2017 TAD #1 Revenues = $ 312,800• City 2018 TAD #1 Revenues = $ 312,800• RiverPoint 2018 est. partial increment = $ 110,000
Total anticipated to be collectedthrough 2018 prior to first installment= $1,148,000*
*including RiverPoint City & County increment in 2018
only and NOT including any Marriott revenues. The County is asked to contribute 100% of its increment until the reimbursement is completed.
RiverPoint: TAD #1 Feasibility
Owner Address Acres
Numerous Numerous Numerous $28,497,504.00 $11,360,261.00 0.027536 $312,816.15
- $28,497,504.00 $11,360,261.00 $312,816.15
RiverPoint Units
124 $11,160,000.00 $4,464,000.00 0.037136 $165,775.10
124 $11,160,000.00 $4,464,000.00 $165,775.10
Net Potential TAD 1 Proceeds Available (excluding Marriott) $478,591.25
Total RiverPoint TAD Reimbursement Requested $3,300,000.00
Or Annual RiverPoint TAD Contribution ($3.3m @ 0%, 15 years) $220,000.00
Remaining TAD 1 Revenue to Accrue Annually $258,591.25
*Initial County Share of New RiverPoint Taxes Contributed to TAD Annually = $42,850
The County is asked to contribute 100% of RiverPoint increment until total RiverPoint reimbursement is completed
Estimated New
Property Taxes
Est. 2017 Mill Rates
(unchanged from 2016)
Estimated Net
Taxable Value
Estimated
Appraised Value
Estimated Appraised
Value per Unit
2016 Projected
Property Taxes
City of Rome Tax Allocation District 1-Projected 2016 Revenues (Net of Base Line Ad Valorem Values)
TAD 1 Revenues with ONLY CITY OF ROME participating (excluding Marriott)
City of Rome Tax Allocation District 1
ADDITION of RiverPoint Increment to TAD 1 Revenues with CITY & COUNTY* participating (excluding Marriott)
2016 Actual
Increment Value
2016 Actual
Taxable Value 2016 Mill Rates
$90,000.00
RiverPoint: TAD#1 Works• RiverPoint will not be self-financing initially, but as the property stabilizes
the RiverPoint increment will grow.
• Current property values in TAD#1 have increased 82% in last nine years.
• Current and projected TAD #1 revenues support our request leaving
substantial funds to accrue annually for quicker repayment.
• Also, RiverPoint will lead to additional new commercial development
around the stadium area, further growing the Tax Digest and TAD #1
revenues.
• New Retail Magnifies the Impact. (Creating TAD 2 brought 240 jobs and
will generate more than $300,000 in sales taxes this year--$2.1 million since
opening based on actual sales since 2007!)
• Developments that follow can be evaluated on case by case basis for TAD
support, but RiverPoint is ready to lead the way now.
• No risk or cost to the City or County or Taxpayers; All risk is ours.
Remember: TAD Funds Must Be Invested in the TAD
RiverPoint: Let’s Get Started
The Bottom line: We have an unworkable feasibility gap to accomplish this $19 million investment. The City and
County have the solution to enable this development to
happen at no cost to the City, County, or taxpayers. The TAD tool is in place and is able to support our request. We
have presented a significant and eligible project that we believe will bring extraordinary benefits and be the catalyst
to future growth in the corridor where we, as taxpayers, have already invested some $50 million in infrastructure.
Now we, as longtime investors in Rome and Floyd County, are ready, willing, and able to get started.
On behalf of Rome Riverview Partners, LLC
we respectfully ask that the Floyd County Commission
approve our TAD #1 reimbursement request and join
with the City of Rome to help make RiverPoint possible.
Together We Can Help Grow Greater Rome.
Thank you.