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Ogden Business Exchange HUD 108 Loan Application Page I 1 SECTION 108 LOAN GUARANTEE PROGRAM APPLICATION FOR FUNDING Ogden City, Utah May 7, 2014 Prepared by: Ogden City Department of Community and Economic Development ---PAGE BREAK--- Ogden Business Exchange HUD 108 Loan Application Page I 2 Ogden City Corporation 2549 Washington Blvd Ogden, Utah 84401 Phone: [PHONE REDACTED] www.ogdencity.com CHIEF ELECTED OFFICIAL Mayor Michael P. Caldwell 2549 Washington Blvd Suite 900 Ogden, Utah 84401 Phone: [PHONE REDACTED] [EMAIL REDACTED] STAFF CONTACT Brandon Cooper, Deputy Director Community & Economic Development 2549 Washington Blvd Suite 420 Ogden, Utah 84401 Phone: [PHONE REDACTED] [EMAIL REDACTED] CONSULTANT CONTACT Chuck Depew National Development Council 10159 NE Garibaldi Loop Bainbridge Island, WA 98110 [EMAIL REDACTED] ADMINISTERING AGENCY The City of Ogden currently receives Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funding on an annual entitlement basis from the U.S. Department of Housing and Urban Development (HUD). The City is governed by a Mayor- Council form of government, meaning there is a full-time elected Mayor and a part-time 7- member City Council, who are elected to a four-year term. The Mayor has administrative and executive responsibility whereas the City Council has legislative responsibility. Together they approve all HUD-funded projects. The Department of Community and Economic Development (“CED”) also reviews and approves proposed projects prior to review by the Mayor. CED is the designated department administering HUD funds on behalf of Ogden City. GENERAL INFORMATION ---PAGE BREAK--- Ogden Business Exchange HUD 108 Loan Application Page I 3 The mission of the Department of Community and Economic Development is to “make the community stronger by creating and utilizing physical, financial, and social assets to generate improved and broadly shared economic well-being and quality of life”. Ogden City (the “City”) seeks to establish funding not to exceed $3.34 million under the Section 108 Loan Guarantee Program administered by the U.S. Department of Housing and Urban Development (HUD) under 24 CFR 570. These funds, if approved, will be utilized to assist with economic and community development activities within the Ogden Business Exchange project. The Ogden Business Exchange is a 100 acre master planned, rail served business and industrial location with over 80 buildable acres for sale or lease. A former cattle stock yard and shipping facility, Ogden Business Exchange will be transformed into a vibrant, convenient, and state-of- the-art business location offering premier services and infrastructure to the office, manufacturing, distribution, and light industrial sectors. (the “Project”) – See Appendix A – Project. NARRATIVE In 2013, the Board of Directors of the Ogden City Redevelopment Agency approved the creation of an Economic Development Area known as the Trackline EDA (“Project Area”) – See Appendix B – Project Area, and has approved an initial project plan supporting the Ogden Business Exchange. Predominantly vacant with underutilized commercial/industrial land, the Project Area was used as a stockyard and livestock exchange until the late 1970’s. The stockyards and the existing historic Union Stock Exchange building are no longer used for those purposes, with some of the remaining buildings currently used as storage and some of the buildings sitting vacant. Land within the Project Area is currently owned by multiple owners and the land use is mixed between commercial/industrial and residential. It is intended that phase I of the Project will turn the empty stockyards and commercial buildings into a light industrial/business park with approximately 3,062,268 square feet of manufacturing and light industrial space. This initial phase will not remove or add to the existing residential space. The Project Area is near a freeway on-ramp, rail and airport service, adjacent to the Weber River and natural amenities, and with new development, will attract private capital investment, contribute to the tax base, create jobs, and otherwise contribute to the economic vitality and prosperity of the community. Creation of the Project Area allows for certain public investments that will induce participation and additional investment by the private sector, while at the same time allowing for a cohesive STATEMENT OF DEVELOPMENT OBJECTIVES (570.704(a)i(A)) PROJECT DESCRIPTION ---PAGE BREAK--- Ogden Business Exchange HUD 108 Loan Application Page I 4 development planning process that incorporates a physical and programmatic vision for the City’s future in this key location of the community. These actions include site assembly and provision of new public infrastructure to provide roads, sewers and power access. The new infrastructure will ease access to the development and enhance the street grid in the project area. Once completed the City estimates that approximately 100-500 new jobs will be created over the life of the Project. Proceeds from the Section 108 Loan will be used to fund publicly-owned, off-site infrastructure, land acquisition, some environmental remediation expenses, site grading to bring developable sites above the FEMA floodplain, and HUD closing costs. This loan will be repaid from property sales receipts and tax increment revenue created from new development in the Project Area over a 20 Year program period. Two initial businesses are projected to construct facilities in early 2015 with occupancy in 2015 and 2016. Nominal tax proceeds are projected until 2017 and then increase as these buildings and other new development begins generating increased tax revenues, which are pledged to this redevelopment effort. This document, consisting of a narrative as well as required attachments, constitutes the formal application to HUD for Section 108 Loan Guarantee funds. PROJECT STRUCTURE AND FINANCING Borrower: Ogden, Utah Section 108 Loan Amount: $3,340,000 Proposed Term: Expires in 2031 Interest Rate: HUD Section 108 floating rate based on 20 basis points over 90 day LIBOR (currently 0.45% though forecasted at 0.50%) until the rate is fixed by public offering. The pro forma assumes a fixed rate after Year 5. Entity to Undertake the Project: Ogden City RDA Principal Developer: TBD Additional Sources of Capital: See Appendix C – Financial Summary ---PAGE BREAK--- Ogden Business Exchange HUD 108 Loan Application Page I 5 IMPLEMENTATION SCHEDULE MAJOR TASKS/ACTIVITIES Completion Date 1. Creation of Economic Development Project Area April 23, 2013 2. Acquisition and Development Financing June 30, 2014 3. Regulatory Approvals November 28, 2014 4. Design and Engineering March 30, 2015 5. Construction December 31, 2018 6. Marketing Ongoing STATEMENT OF SOURCES AND USES Total Development Cost: $21,180,336 The following represents a summary of the development costs for the initial phase I of the Project. See Appendix A – Financial Summary for a more detailed development budget. SOURCES AMOUNT USES AMOUNT Section 108 Loan $3,340,000 Property Acquisition $5,911,081 Ogden RDA Funds $7,000,000 Construction $7,750,000 Ogden City CIP Funds $1,230,175 Non-Construction $83,050 Ogden CDBG Entitlement $550,000 Debt Service $7,436,205 Land Sales Proceeds $9,060,161 TOTAL $21,180,336 $21,180,336 * Ogden RDA funding represents TIF proceeds collected from the Project Are during the Project Area term. The City estimates $11.196 million in TIF revenues to be generated over the 20 year life of the Project Area. $7 million has been budgeted for the financing needs of the Project. PROPOSED COSTS The City has not yet selected its developer/general contractor and does not yet have cost estimates confirmed by a general contractor’s guaranteed maximum price contract. Instead, the City has estimated costs based on previous experience. The final development budget will contain various contingencies to guard against any cost overruns. The City will reserve a construction contingency of 5% after bids and soft cost contingency of both of which are consistent with customary underwriting requirements for new construction projects. ---PAGE BREAK--- Ogden Business Exchange HUD 108 Loan Application Page I 6 REPAYMENT SOURCE Primary Source of Repayment The Project is anticipated to take 5 years to development and sell through. During construction, debt service on the 108 Loan will be paid by appropriations from the City of Ogden. Ogden’s CDBG Entitlement will fund interim interest on the HUD 108 loan until development occurs and increased tax revenues begin. This amounts to $16,700 annually with an initial 4 Year interest- only period totaling $66,800 (based on current HUD rates.) Following construction, the primary source of loan repayment for the 108 Loan will be revenue generated by the proceeds of land sales, which are projected to generate $9.08 million. In addition, the City estimates that development in the Project could total $33.850 million in private investment. This would generate $11.471 million in additional property taxes. Under the State of Utah’s tax increment regulations these additional tax revenues can be secured by the Ogden City Redevelopment Agency to be used as additional 108 Loan debt support. The Project has been budgeted at $7.0 million in TIF proceeds. 2018 is the year the 108 loan begins its amortization with principal being repaid. Tax receipts alone provide a 1.23 debt service cover in 2018 and increases each year until the last tax increment year of 2031 when it decreases to 1.03. Secondary Source of Repayment The secondary source of repayment is a pledge of the City’s CDBG Entitlement. REPAYMENT SCHEDULE Principal on the Section 108 Loan will be amortized over the loan term in the following amounts (See Appendix C – Financial Summary for more detailed information): 2014 0 2024 250,000 2015 0 2025 250,000 2016 0 2026 250,000 2017 0 2027 275,000 2018 110,000 2028 275,000 2019 175,000 2029 275,000 2020 225,000 2030 275,000 2021 235,000 2031 260,000 2022 240,000 2023 245,000 Total: $3,340,000 ---PAGE BREAK--- Ogden Business Exchange HUD 108 Loan Application Page I 7 ADDITIONAL SECURITY Until sold, the City will own portions of the Project subject to a purchase and sale contract with the prior owners. The City’s ownership will be senior to all other liens and will be available to liquidate, if necessary, to repay the 108 loan. Properties in the Project have an estimated value of $6.50 per square foot based on initial offers. Total sales are projected at $9,060,061. As a result, the Section 108 loan will be well within HUD’s preferred 80% loan to value requirement. LTV: $3,340,000 (loan amount) / $9,060,061 (land value) = = 36.87%. COMMITMENT OF FUNDS The City has appropriated CIP Funds and budgeted RDA resources for the Project. The HUD 108 Loan is the last source of funding necessary to begin. CBDG NATIONAL OBJECTIVE Any project funded under the Section 108 program must meet one of three CDBG National Objectives pursuant to 24 CFR 570.200(a)(2) and 570.208: 1. Benefit to low and moderate income families. 2. Aid in the prevention or elimination of slums or blight. 3. Activities meeting community development needs having a particular urgency because existing conditions pose a serious and immediate threat to health or welfare of the community and where other financial resources are not available to meet such needs. The Section 108 Loan will assist in financing the site clean-up and new infrastructure and street improvements for the Project. This use of 108 funds will meet the national objective of benefiting low and moderate income families through the creation of permanent jobs. To qualify as a job creation or retention activity, 24 CFR 570.208(a)(4) requires that the project “create or retain permanent jobs where at least 51 percent of the jobs, computed on a full time equivalent basis, involve the employment of low-and moderate-income persons." The City will make a condition of any entity or business purchasing or leasing property in the Project to collect CDBG required information from their employees. The City will use this documentation to verify that at least 51% of the permanent FTE hired after 108 loan disbursements will be held by low- and moderate-income persons. PUBLIC BENEFIT AND REGULATORY COMPLIANCE ---PAGE BREAK--- Ogden Business Exchange HUD 108 Loan Application Page I 8 24 CFR 570.208 (a)(4)(iv) states that “for the purposes of determining whether a job is held by or made available to a low- or moderate-income person, the person may be presumed to be a low- or moderate-income person if:” The assisted business is located within a census tract (or block numbering area) that meets the requirements of paragraph of this section and the job under consideration is to be located within that census tract. A census tract (or block numbering area) qualifies under the presumptions permitted under paragraphs and of this section if it is either part of a Federally- designated Empowerment Zone or Enterprise Community or meets the following criteria: It has a poverty rate of at least 20 percent as determined by the most recently available decennial census information; It does not include any portion of a central business district, as this term is used in the most recent Census of Retail Trade, unless the tract has a poverty rate of at least 30% as determined by the most recently available decennial census information; and It evidences pervasive poverty and general distress by meeting at least one of the following standards: All block groups in the census tract have poverty rates of at least 20 percent; or The specific activity being undertaken is located in a block group that has a poverty rate of at least 20 percent; or … The project area is located in Census Tract 49057201900. The most recent census shows 33.8% of area household at or below the poverty level. The project is also located in Block 1 of this Census Tract which also has 33.8% of tract households with at or below poverty. The project Census Tract and Block Numbering Area meet the statutory criteria for presumed benefit. As such, all jobs created in the Project are presumed to benefit low- and/or moderate-income households. The City will enter into agreements with any business locating in the Project to document the creation of new jobs. Documentation will include job title, person in the job, FTE status. Two initial businesses are projected to immediately develop in the Project and create new jobs: ENVE Composites is considered one of the premier carbon fiber wheel and component manufacturers in the bicycling industry. Ogden has become a home to outdoor recreation manufacturing companies. ENVE is experiencing significant growth as composite materials become more main stream within the bicycling industry. ENVE will construct a 175,000 square foot building on a 7 acre site in the Project. Occupancy is projected 4th Quarter 2015. With ---PAGE BREAK--- Ogden Business Exchange HUD 108 Loan Application Page I 9 current employment at 50, ENVE expects to grow to 225 FTE by 2019. While some positions require engineering and other technical skills, many are warehouse positions, sales and administrative positions available to Ogden’s low- and/or moderate-income communities. Red Oil Giant has been in existence since 1910 and provides a wide variety of petroleum products to construction, industrial manufacturing and sanitation companies. Red Giant is looking to build a new 25,000 square foot facility on 7 acres in the business park. Occupancy is projected 1st Quarter 2016. Full-time Equivalent (FTE) positions will increase from its current 5 to 10 with most involved in trucking and warehouse needs. Due to the location of the Project, all employment created by the above businesses and any other businesses locating in the Project are presumed to be low/moderate-income jobs. The City will provide requirements in property sale documents requiring each business to report on an annual basis all: new jobs created, FTE of those positions, the job title and the person holding that job. Annual reports will be used by the City to document job creation. 108 ELIGIBLE ACTIVITY In addition to meeting a National Objective, projects funded under the Section 108 Loan Program must meet an eligible activity. The Project will be eligible under 570.703: • 24 CFR 570.703(a) Acquisition of improved or unimproved real property in fee or by long- term lease, including acquisition for economic development purposes.; and • 24 CFR 570.703(e) Clearance, demolition, and removal, including movement of structures to other sites and remediation of properties with known or suspected environmental contamination, of buildings and improvements on real property acquired or rehabilitated pursuant to paragraphs and of this section. Remediation may include project specific environmental assessment costs not otherwise eligible under 570.205; and • 24 CFR 570.703(f) Site preparation, including construction, reconstruction, installation or public and other site improvements, utilities or facilities (other than buildings), or remediation of properties (remediation can include project-specific environmental assessment costs not otherwise eligible under 570.205 with known or suspected environmental contamination, which is: Related to the redevelopment or use of the real property acquired or rehabilitated pursuant to paragraphs and of this section, or For an economic development purpose; and • 24 CFR 570.703(g) Payment of issuance, underwriting, servicing, trust administration and other costs associated with private sector financing of debt obligations under this subpart. The City will use proceeds of the 108 loan for site clearing, infrastructure development, some site environmental remediation and the financial closing costs of HUD. The City has acquired properties so the eligible activities relate to property owned by the public. ---PAGE BREAK--- Ogden Business Exchange HUD 108 Loan Application Page I 10 ANNUAL ACTION PLAN This application will provide funding for the Project with the goal of transforming a vacant and dilapidated area which once housed a stockyard and livestock exchange into a productive and vibrant light industrial/business park to create jobs for Ogden’s low- and moderate-income households. The project responds to the following of Ogden’s CDBG Annual Action Plan goals: EXPAND ECONOMIC OPPORTUNITIES ANNUAL GOALS • Stimulate business growth, economic expansion and job creation through a wide range of projects (including the city’s development of underutilized property, or through financial assistance to for-profit businesses to eliminate blight or to create or retain jobs). Additional community development goals that were adopted for the Project include: 1. Encourage and assist economic development to create jobs 2. Eliminate environmental deficiencies 3. Provide upgraded public infrastructure 4. Provide for strengthening property and income tax base 5. Facilitate safe public access to major environmental asset – Weber River 6. Create a catalyst for improvement in the West Ogden Community 7. Create incentive to accelerate the interchange at 24th and I-15 CITIZEN PARTICIPATION This application was developed in accordance with Ogden City’s Citizen Participation Plan, which facilitates public input and comment for all HUD-funded programming. Citizens were afforded opportunities to participate in the application process by means of community meetings (West Ogden Community Plan meetings), Citizen Advisory Committee meetings, web outreach, published notices and a public hearing. Community and public meetings were held to receive questions and comments both at the meetings and through written comments. Initiatives to provide for citizens’ input involved the following activities: • Citizen Advisory Committee meetings were held February 19, 2014 and March 20, 2014 to solicit citizen input regarding the Ogden Business Exchange Project, the HUD Section 108 Loan application, and Amendments to the Five Year ConPlan and Annual Action Plan (which include the HUD Section 108 loan as a funding source). Positive comments were received and the project is strongly supported by the committee. • Ogden City Planning Division staff and the City’s Grants Administrator met with West Ogden residents at an open house on May 15, 2013 to solicit citizen input regarding the West Ogden Community Plan and community vision, prior to project selection. ---PAGE BREAK--- Ogden Business Exchange HUD 108 Loan Application Page I 11 • In total, the City invited residents to two open houses to discuss the West Ogden Community Plan; Ogden City Planning Commission held one public meeting and one public hearing to receive citizen input on the proposed West Ogden Community Plan; and an Ogden City Council meeting was held April 14, 2014 to adopt an ordinance approving West Ogden Community Plan. • A Press Release was published April 9, 2014 inviting citizens to the City Council meeting April 14, 2014 to receive citizen comments prior to approval of an ordinance approving West Ogden Community Plan. The Plan is posted at the city’s website. Postcards were mailed to every property owner informing them of the Planning Commission meeting, and a notice was published in the paper informing citizen of the Planning Commission Public Hearing to discuss the West Ogden Community Plan. • The Draft HUD Section 108 Loan application was made available to the public via Ogden City’s website as well as printed copies were made available at Ogden City Municipal Building offices, Ogden Housing Authority office, and Weber County Library during a 30- day public comment period. The Draft HUD Section 108 Loan application was posted at the Ogden City HUD ConPlan webpage http://HUDConplan.ogdencity.com for public review and comment. • A web article was published February 27, 2014 on the front page of the City’s website www.ogdencity.com to solicit public comments on the HUD Section 108 Loan application. • Notices were published in the Standard Examiner (local newspaper) announcing the 30 day public comment period to adopt the ConPlan and Annual Action Amendments, a notice was published announcing the 30 day public comment period for the HUD Section 108 Loan application, and notice of public hearing was published. Notices were also submitted to the City Recorder’s Office. Appendix D – Supplemental Documentation. • An Ogden City Council Public Hearing was held on March 25, 2014 adopting Resolution 2014-06 approving the ConPlan and Annual Action Plan Amendments, and adopting Resolution 2014-08 approving submission of the HUD Section 108 Loan application. Information regarding the proposed project and Section 108 funding was made available and an opportunity for questions/answers or comments was provided. • Resolutions approving the Amendments and application following the public hearing are attached. See Appendix D. DISPLACEMENT, RELOCATION, ACQUISITION, AND REPLACEMENT OF HOUSING The Project and any existing buildings are currently vacant. There are no businesses or residential homes that exist in the Project. Some demolition has been conducted previously by other property owners prior to submission of proposal for Section 108 assistance. The developer will work with the City to locate previous residents and/or business owners who may have occupied the property at acquisition in an effort to provide eligible relocation assistance where applicable. ---PAGE BREAK--- Ogden Business Exchange HUD 108 Loan Application Page I 12 FEDERAL ENVIRONMENTAL REVIEW The City has initiated an environmental review of the project with reviews expected to be complete prior to submission of this application to HUD, but no later than final determination of funding by HUD. Specific areas of focus for the review include environmental conditions, impacts on the adjacent Weber River and Historic Preservation. An existing building in the Project has been determined to be eligible for listing on National Register of Historical Places and there may be areas adjacent to the Weber River with other historical significance. ---PAGE BREAK--- Ogden Business Exchange HUD 108 Loan Application Page I 13 APPENDIX A – THE PROJECT ---PAGE BREAK--- Ogden Business Exchange HUD 108 Loan Application Page I 14 APPENDIX B – THE PROJECT AREA ---PAGE BREAK--- Ogden Business Exchange HUD 108 Loan Application Page I 15 APPENDIX C – FINANCIAL SUMMARY ---PAGE BREAK--- Page 1 of 5 Updated January 31, 2014 PROJECT NAME: TrackLine Business Park - PHASE I Ogden Business Exchange SOURCES & USES OF FUNDS DATE: 10-Feb-14 40 acres developed SOURCES OF FUNDS TOTAL 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 TOTAL CAPITALIZATION Base Year Tax Year 1 Tax Year 2 Tax Year 3 Tax Year 4 Tax Year 5 Tax Year 6 Tax Year 7 Tax Year 8 Tax Year 9 Tax Year 10 Tax Year 11 Tax Year 12 Tax Year 13 Tax Year 14 Tax Year 15 Tax Year 16 Tax Year 17 Tax Year 18 Tax Year 19 Tax Year 20 SOURCES Redevelopm ent Agency 7,000,000 119,594 236,500 357,897 469,248 583,523 596,350 609,433 622,778 694,212 708,096 722,258 736,703 543,407 7,000,000 Interim Bridge Loan 2,615,000 2,615,000 2,615,000 HUD 108 3,340,000 3,340,000 3,340,000 CDBG Entitlem ent 550,000 550,000 550,000 Ogden City CIP 1,230,175 230,175 250,000 250,000 250,000 250,000 1,230,175 Historical Tax Credit Developer Equity Developers Debt Land Sales 9,060,061 32.00 1,863,061 1,900,000 1,897,000 1,750,000 1,650,000 9,060,061 Carry-over Funds 6.50 $ 2,587,207 13,105 2,081,410 1,938,559 211,048 499,594 821,730 1,084,029 1,362,637 1,657,991 2,028,353 2,421,349 2,837,257 3,251,361 3,481,793 3,178,443 2,884,718 2,615,618 2,615,618 TOTAL SOURCES 23,795,236 0 4,120,175 2,587,207 4,860,760 4,467,910 4,443,456 2,680,296 2,733,117 1,418,079 1,693,462 1,985,416 2,352,203 2,736,449 3,143,607 3,573,961 3,794,768 3,481,793 3,178,443 2,884,718 2,615,618 2,615,618 23,795,236 CUMULATIVE 4,120,175 4,120,175 8,967,830 11,354,330 13,859,227 16,328,475 18,561,998 19,158,347 19,767,780 20,390,559 21,084,771 21,792,867 22,515,125 23,251,829 23,795,236 23,795,236 23,795,236 23,795,236 23,795,236 23,795,236 TOTAL USES OF FUNDS PROPOSED USES AMOUNT Land Acquisition Phase 1 5,879,862 0 Earnest Money 220,000 Installm ent Paym ents 56,219 914,402 781,901 781,901 2,374,758 781,902 Phase Total 5,911,081 276,219 914,402 781,901 781,901 2,374,758 781,902 5,911,081 Land Development Phase 1 7,750,000 1,200,000 1,600,000 1,850,000 1,600,000 1,500,000 7,750,000 Phase Total 7,750,000 1,200,000 1,600,000 1,850,000 1,600,000 1,500,000 7,750,000 Tenant Improvements Estim ated @ $35 psf Phase Total 0 Soft Costs Developer's Fees and Costs 0 HUD Closing Costs (.75% ) 25,050 25,050 25,050 Interim Bridge Loan Fee ) 23,000 23,000 23,000 Appraisals, Title, Misc. 35,000 15,000 20,000 35,000 Phase Total 83,050 40,050 43,000 0 0 0 0 0 0 0 83,050 Debt Service Annual Debt Service - Bridge Debt 3,082,463 0 130,750 130,750 130,750 1,110,750 1,579,463 0 0 3,082,463 Annual Debt Service - HUD 108 Debt 4,353,025 16,700 16,700 16,700 16,700 226,900 288,050 331,925 334,050 330,825 327,425 323,850 315,100 306,350 322,600 312,975 303,350 293,725 269,100 0 0 4,353,025 Yearly Paym ents - Developer Debt Phase Total 7,435,488 16,700 16,700 147,450 147,450 357,650 1,398,800 1,911,388 334,050 330,825 327,425 323,850 315,100 306,350 322,600 312,975 303,350 293,725 269,100 0 0 7,435,488 TOTAL USES 21,179,618 1,532,969 2,574,102 2,779,351 2,529,351 4,232,408 2,180,702 1,911,388 334,050 330,825 327,425 323,850 315,100 306,350 322,600 312,975 303,350 293,725 269,100 0 0 21,179,618 CUMULATIVE 1,532,969 4,107,070 6,886,421 9,415,771 13,648,179 15,828,881 17,740,268 18,074,318 18,405,143 18,732,568 19,056,418 19,371,518 19,677,868 20,000,468 20,313,443 20,616,793 20,910,518 21,179,618 21,179,618 21,179,618 NET CASH FLOW 2,615,618 2,587,207 13,105 2,081,410 1,938,559 211,048 499,594 821,730 1,084,029 1,362,637 1,657,991 2,028,353 2,421,349 2,837,257 3,251,361 3,481,793 3,178,443 2,884,718 2,615,618 2,615,618 2,615,618 13,105 2,081,410 1,938,559 211,048 499,594 821,730 1,084,029 1,362,637 1,657,991 2,028,353 2,421,349 2,837,257 3,251,361 3,481,793 3,178,443 2,884,718 2,615,618 2,615,618 2,615,618 2018 2019 2020 2021 2022 2015 2016 2017 2013 2014 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 ---PAGE BREAK--- Page 2 of 5 Updated January 31, 2014 PROJECT NAME: TrackLine Business Park - PHASE I Ogden Business Exchange ESTIMATED AVAILABLE TAX INCREMENT DATE: 20-Feb-14 40 acres developed Commercial Area Tax Increment Calculation 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 PROJECT REVENUES Base Year Tax Year 1 Tax Year 2 Tax Year 3 Tax Year 4 Tax Year 5 Tax Year 6 Tax Year 7 Tax Year 8 Tax Year 9 Tax Year 10 Tax Year 11 Tax Year 12 Tax Year 13 Tax Year 14 Tax Year 15 Tax Year 16 Tax Year 17 Tax Year 18 Tax Year 19 Tax Year 20 1. WEBER COUNTY - RATE 0.01738 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 2. WEBER COUNTY - NET ASSESSMENT CHARGE 3. % WEBER COUNTY - TAX BASE VALUE 4,351,524 PROJECT EXPENDITURES 4. REAL PROPERTY Land Acquisition - Phase I 5,879,862 5,879,862 Land Development - Phase I 1,400,000 1,550,000 1,800,000 1,500,000 1,500,000 7,750,000 New Buildings - Phase I 5,500,000 6,500,000 6,500,000 6,000,000 6,000,000 30,500,000 5. REAL PROPERTY - AREA TOTAL 12,779,862 20,829,862 29,129,862 36,629,862 44,129,862 45,012,459 45,912,708 46,830,963 47,767,582 48,722,933 49,697,392 50,691,340 51,705,167 52,739,270 53,794,056 54,869,937 55,967,335 57,086,682 MARGINAL VALUE (line 3-5) 8,428,338 16,478,338 24,778,338 32,278,338 39,778,338 40,660,935 41,561,184 42,479,439 47,767,582 48,722,933 49,697,392 50,691,340 51,705,167 52,739,270 53,794,056 54,869,937 55,967,335 57,086,682 ADJUSTED TAX INCREMENT (100% ) 8,428,338 16,478,338 24,778,338 32,278,338 39,778,338 40,660,935 41,561,184 42,479,439 47,767,582 48,722,933 49,697,392 50,691,340 51,705,167 52,739,270 53,794,056 54,869,937 55,967,335 57,086,682 REDEVELOPMENT PROJECT TAX RATE 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 INCREMENT VALUE 149,325 291,947 438,998 571,875 704,753 720,390 736,340 752,608 846,298 863,224 880,489 898,098 916,060 934,382 953,069 972,131 991,573 1,011,405 13,632,965 HOUSING PORTION (20% ) 29,865 58,389 87,800 114,375 140,951 144,078 147,268 150,522 169,260 172,645 176,098 179,620 183,212 186,876 190,614 194,426 198,315 202,281 2,726,593 AGENCY ADMINISTRATION PORTION ) 7,466 14,597 21,950 28,594 35,238 36,019 36,817 37,630 42,315 43,161 44,024 44,905 45,803 46,719 47,653 48,607 49,579 50,570 681,648 6. TOTAL TAX INCREMENT FROM REAL PROPERTY 111,994 218,960 329,248 428,906 528,565 540,292 552,255 564,456 634,724 647,418 660,367 673,574 687,045 700,786 714,802 729,098 743,680 758,554 10,224,724 7. PERSONAL PROPERTY / BUILDINGS PERSONAL PROPERTY 650,000 850,000 950,000 1,000,000 1,250,000 4,700,000 8. PERSONAL PROPERTY / BUILDINGS - AREA TOTAL 650,000 1,500,000 2,450,000 3,450,000 4,700,000 4,794,000 4,889,880 4,987,678 5,087,431 5,189,180 5,292,963 5,398,823 5,506,799 5,616,935 5,729,274 5,843,859 5,960,736 6,079,951 DEPRECIATION 572,000 1,320,000 2,156,000 3,036,000 4,136,000 4,218,720 4,303,094 4,389,156 4,476,939 4,566,478 4,657,808 4,750,964 4,845,983 4,942,903 5,041,761 5,142,596 5,245,448 5,350,357 ADJUSTED TAX INCREMENT (100% ) 572,000 1,320,000 2,156,000 3,036,000 4,136,000 4,218,720 4,303,094 4,389,156 4,476,939 4,566,478 4,657,808 4,750,964 4,845,983 4,942,903 5,041,761 5,142,596 5,245,448 5,350,357 REDEVELOPMENT PROJECT TAX RATE 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 0.017717 INCREMENT VALUE 10,134 23,386 38,198 53,789 73,278 74,743 76,238 77,763 79,318 80,904 82,522 84,173 85,856 87,573 89,325 91,111 92,934 94,792 1,296,038 HOUSING PORTION (20% ) 2,027 4,677 7,640 10,758 14,656 14,949 15,248 15,553 15,864 16,181 16,504 16,835 17,171 17,515 17,865 18,222 18,587 18,958 259,208 AGENCY ADMINISTRATION PORTION ) 507 1,169 1,910 2,689 3,664 3,737 3,812 3,888 3,966 4,045 4,126 4,209 4,293 4,379 4,466 4,556 4,647 4,740 64,802 9. TOTAL TAX INCREMENT FROM PERSONAL PROPERTY 7,601 17,540 28,648 40,342 54,958 56,057 57,178 58,322 59,488 60,678 61,892 63,130 64,392 65,680 66,994 68,334 69,700 71,094 972,028 10. TOTAL INCREMENT (Line 6 + 9) 119,594 236,500 357,897 469,248 583,523 596,350 609,433 622,778 694,212 708,096 722,258 736,703 751,438 766,466 781,796 797,432 813,380 829,648 TOTAL PROJECTED INCREMENT 11,196,752 ESTIMATED PRESENT VALUE OF INCREMENT INVESTMENT SCHEDULE TOTAL COST PAYMENT DEVELOPMENT INCENTIVE 7,000,000 ANNUAL HOUSING 2,985,800 ANNUAL RDA ADMIN 746,450 ANNUAL TOTAL INVESTMENT 10,732,251 AVAILABLE INCREMENT 11,196,752 UNCOMMITTED INCREMENT 464,501 ---PAGE BREAK--- Ogden Business Exchange - Development Cost Budget Demolition Quantity Units Price Total Cost Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Debris Removal 4500 CY 30 $ 135,000 $ 135,000 $ 135,000 $ 135,000 $ 135,000 $ Building Demolition and Removal 7 EA 11,000 $ 77,000 $ 77,000 $ 77,000 $ 77,000 $ 77,000 $ Concrete Crushing 22000 CY 7 $ 154,000 $ 154,000 $ 154,000 $ 154,000 $ 154,000 $ Green W aste Chipping 11000 CY 3 $ 33,000 $ 33,000 $ 33,000 $ 33,000 $ 33,000 $ Remove Existing Poles 6 EA 950 $ 5,700 $ 5,700 $ 5,700 $ 5,700 $ 5,700 $ Onsite Monitoring 1 LS 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ - $ - $ - $ Subtotal 419,700 $ - $ - $ - $ - $ - $ - $ 419,700 $ - $ 419,700 $ - $ - $ - $ 419,700 $ - $ 419,700 $ Road Improvements Quantity Units Price Total Cost Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Curb and Gutter 17000 LF 14 $ 238,000 $ 238,000 $ 238,000 $ 238,000 $ 238,000 $ 4' Sidewalk 14000 LF 16 $ 224,000 $ 224,000 $ 224,000 $ 224,000 $ 224,000 $ Asphalt Road 47223 SY 25 $ 1,180,575 $ 1,180,575 $ 1,180,575 $ 1,180,575 $ 1,180,575 $ Road Base 0 CY 10 $ - $ - $ - $ - $ - $ Road Base (12") 0 CY 15 $ - $ - $ - $ - $ - $ Granual Barrow (12") 6037 CY 8 $ 48,296 $ 48,296 $ 48,296 $ 48,296 $ 48,296 $ ADA Ramp 8 EA 1,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ Street Lighting Pole 15 EA 4,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ Street Lighting Conduit 1850 LF 14 $ 25,900 $ 25,900 $ 25,900 $ 25,900 $ 25,900 $ General Flatwork 1000 LF 16 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ Subtotal 1,800,771 $ - $ - $ - $ - $ - $ - $ 1,800,771 $ - $ 1,800,771 $ - $ - $ - $ 1,800,771 $ - $ 1,800,771 $ On-site Culinary Water Quantity Units Price Total Cost Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Connect to Existing 1 LS 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ Culinary W ater Laterals 15 LS 7,500 $ 112,500 $ 112,500 $ 112,500 $ 112,500 $ 112,500 $ 24" PVC C900 2000 LF 150 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 24" Butterfly Valve 3 EA 11,000 $ 33,000 $ 33,000 $ 33,000 $ 33,000 $ 33,000 $ 12" PVC C900 4000 LF 60 $ 240,000 $ 240,000 $ 240,000 $ 240,000 $ 240,000 $ 12" Gate Valve 10 EA 6,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ Fire Hydrant 7 EA 3,500 $ 24,500 $ 24,500 $ 24,500 $ 24,500 $ 24,500 $ Subtotal 770,500 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 770,500 $ - $ 770,500 $ 770,500 $ - $ 770,500 $ Off-Site Culinary Water Quantity Units Price Total Cost Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Connect to Existing 1 EA 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 24" PVC C900 2000 LF 150 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 24" Butterfly Valve 1 EA 11,000 $ 11,000 $ 11,000 $ 11,000 $ 11,000 $ 11,000 $ Bore under UPRR tracks 1 LS 135,000 $ 135,000 $ 135,000 $ 135,000 $ 135,000 $ 135,000 $ Bore under W eber River 1 LS 135,000 $ 135,000 $ 135,000 $ 135,000 $ 135,000 $ 135,000 $ Subtotal 581,500 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 581,500 $ - $ 581,500 $ 581,500 $ - $ 581,500 $ Sanitary Sewer Quantity Units Price Total Cost Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Sewer Laterals 15 LS 7,500 $ 112,500 $ 112,500 $ 112,500 $ 112,500 $ - $ 112,500 $ Connect to Existing 4 EA 1,000 $ 4,000 $ 4,000 $ 4,000 $ 4,000 $ 4,000 $ Manhole 13 EA 3,000 $ 39,000 $ 39,000 $ 39,000 $ 39,000 $ 39,000 $ Lift Station 1 LS 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 8" SDR-35 PVC 3600 LF 35 $ 126,000 $ 126,000 $ 126,000 $ 126,000 $ 126,000 $ Subtotal 321,500 $ - $ - $ - $ - $ - $ - $ 321,500 $ - $ 321,500 $ - $ - $ - $ 321,500 $ - $ 321,500 $ Storm Drain Quantity Units Price Total Cost Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance 36" RCP Pipe 2700 LF 100 $ 270,000 $ 270,000 $ 270,000 $ - $ 270,000 $ - $ 270,000 $ 18" RCP Pipe 1600 LF 70 $ 112,000 $ 112,000 $ 112,000 $ 112,000 $ 112,000 $ 5' Manhole with collar & Lid 5 EA 3,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ Standard Catch Basin 8 EA 2,500 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ Outlet Basin with orafice plate 3 EA 3,000 $ 9,000 $ 9,000 $ 9,000 $ 9,000 $ 9,000 $ Combo Inlet Basin 7 EA 3,000 $ 21,000 $ 21,000 $ 21,000 $ 21,000 $ 21,000 $ Detension Pond Construction 15000 CY 15 $ 225,000 $ 225,000 $ 225,000 $ 225,000 $ 225,000 $ Subtotal 672,000 $ - $ - $ - $ - $ - $ - $ 672,000 $ - $ 672,000 $ - $ - $ - $ 672,000 $ - $ 672,000 $ On-Site Dry Utilities Quantity Units Price Total Cost Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Questar Gas Line 1550 LF 62 $ 96,100 $ 96,100 $ 96,100 $ - $ Century Link 1400 LF 30 $ 42,000 $ 42,000 $ 42,000 $ - $ Comcast 2000 LF 100 $ 200,000 $ 200,000 $ 200,000 $ - $ Rocky Mountain Power 1750 LF 100 $ 175,000 $ 175,000 $ 175,000 $ - $ Subtotal 513,100 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 513,100 $ - $ - $ 513,100 $ - $ - $ Off-Site Dry Utilities Quantity Units Price Total Cost Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Rocky Mountain Power - transmission line bury 1 LS 365,000 $ 365,000 $ 365,000 $ 365,000 $ 365,000 $ 365,000 $ Subtotal 365,000 $ 365,000 $ - $ 365,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 365,000 $ - $ 365,000 $ Flood Plain Mitigation Quantity Units Price Total Cost Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Budget Drawn Balance Per Engineers Recommendations 1 LS 68,500 $ 68,500 $ 68,500 $ 68,500 $ 68,500 $ Subtotal 68,500 $ 68,500 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 68,500 $ - $ 68,500 $ Totals 5,512,571 $ 433,500 $ - $ 3,213,971 $ 1,865,100 $ 5,512,571 $ Project Contingency (20%) 1,102,514 $ Mobilization/Demobilization (10%) 551,257 $ Soft Costs 330,754 $ Project Total 7,497,097 $ CIP CDBG SECTION 108 OTHER TOTALS ---PAGE BREAK--- Page 3 of 5 Updated January 5, 2014 Trackline Trust Deed Payment Tracking Sheet Updated: 1/5/2014 M. George National Land Fed. Land & Sea LLC Reardon Leasing L. George Parcel 14-135-0002 14-010-0049 14-014-0019 14-014-0017 14-014-0015 14-135-0003 Total Acre 12.394 26.67 7.17 1.39 3.2 50.82 Sq ft 539,879 1,161,745 312,325 60,548 139,392 2,213,890 Earnest Payment #1 Paid in Previous Agreements $7,500 $15,000 $22,500 $45,000 Earnest Payment #2 To Be Paid on Effective Date of REPC $20,000 $20,000 Earnest Payment #3 To Be Paid at Closing $42,500 $130,000 $27,500 $200,000 $220,000 Contract Dates Effective Date Seller Disclosures 2/28/2014 2/28/2014 Due Diligence 5/30/2014 2/28/2014 5/30/2014 Closing Date 7/1/2014 3/1/2014 2/4/2019 7/1/2014 Purchase Price 1,808,000 $ 1,405,712 $ 1,873,950 $ 135,000 $ 657,200 $ 5,879,862 $ Less Earnest Payment #1 7,500 $ - $ - $ 15,000 $ 22,500 $ 45,000 $ Less Earnest Payment #2 - $ - $ - $ - $ - $ Less Earnest Payment #3 42,500 $ 130,000 $ 27,500 $ 200,000 $ Purchase Balance 1,758,000 $ 1,275,712 $ 1,873,950 $ 120,000 $ 607,200 $ 5,634,862 $ 2.55 $ SF Trust Deed Payments 2015-2019 2015-2019 2014-2018 2015-2019 2015-2019 Payment #1 351,600 $ 361,143 $ 56,219 $ 24,000 $ 121,440 $ 914,402 $ Payment #2 351,600 $ 228,642 $ 56,219 $ 24,000 $ 121,440 $ 781,901 $ Payment #3 351,600 $ 228,642 $ 56,219 $ 24,000 $ 121,440 $ 781,901 $ Payment #4 351,600 $ 228,642 $ 56,219 $ 24,000 $ 121,440 $ 781,901 $ Payment #5 351,600 $ 228,643 $ 56,219 $ 24,000 $ 121,440 $ 781,902 $ 1,592,858 $ 1,592,858 $ Total Payments 1,758,000 $ 1,275,712 $ 1,873,950 $ 120,000 $ 607,200 $ 5,634,862 $ Purchase Price Per FT 3.35 $ 1.21 $ 6.00 $ 2.23 $ 4.71 $ 2.66 $ 3.50 $ Lease/Option ---PAGE BREAK--- Page 4 of 5 Updated January 31, 2014 Year Rates PROJECT NAME: Interest Principal Annual Payment Additional Payment Loan Balance 0 $3,340,000 1 8/1/14 $16,700 $16,700 $0 $16,700 $3,340,000 2 8/1/15 $16,700 $16,700 $0 $16,700 $3,340,000 3 8/1/16 $16,700 $16,700 $0 $16,700 $3,340,000 4 8/1/17 $16,700 $16,700 $0 $16,700 $3,340,000 5 8/1/18 $226,900 $116,900 $110,000 $226,900 $3,230,000 HUD Rate Fixes 6 8/1/19 $288,050 $113,050 $175,000 $288,050 $3,055,000 7 8/1/20 $331,925 $106,925 $225,000 $331,925 $2,830,000 8 8/1/21 $334,050 $99,050 $235,000 $334,050 $2,595,000 9 8/1/22 $330,825 $90,825 $240,000 $330,825 $2,355,000 10 8/1/23 $327,425 $82,425 $245,000 $327,425 $2,110,000 11 8/1/24 $323,850 $73,850 $250,000 $323,850 $1,860,000 12 8/1/25 $315,100 $65,100 $250,000 $315,100 $1,610,000 13 8/1/26 $306,350 $56,350 $250,000 $306,350 $1,360,000 14 8/1/27 $322,600 $47,600 $275,000 $322,600 $1,085,000 15 8/1/28 $312,975 $37,975 $275,000 $312,975 $810,000 16 8/1/29 $303,350 $28,350 $275,000 $303,350 $535,000 17 8/1/30 $293,725 $18,725 $275,000 $293,725 $260,000 18 8/1/31 $269,100 $9,100 $260,000 $269,100 $0 19 8/1/32 $0 $0 $0 $0 20 8/1/33 $0 $0 $0 $0 $3,340,000 $1,013,025 $3,340,000 $4,353,025 $0 effective interest rate 2.528% $3,340,000 Interim Variable Rate Permanent Fixed Rate 90-Day LIBOR 0.24% 12/30/2013 WSJournal 10 YR Treasury 2.69% 1/31/2014 WSJournal MARGIN 0.20% MARGIN 0.75% 0.44% 0.50% For Projections 3.44% 3.50% For Projections $3,340,000 Loan Amount $233,796 Annual D/S - 20 YR Amortization $114,996 Interest Portion $118,799 Principal Portion HUD 108 BOND SCHEDULE FIXED RATES WORKSHEET TrackLine Business Park - PHASE I Ogden Business Exchange Debt Service ---PAGE BREAK--- Page 5 of 5 Updated January 31, 2014 Loan Amount 2,615,000 Term 6 Interest Rate 5.00% Debt Service 130,750 Interest-Only Year Interest Principal Total Beg. Balance End. Balance 2015 - $ - $ 2,615,000 $ 2,615,000 $ 2016 130,750 $ - $ 130,750 $ 2,615,000 $ 2,615,000 $ 2017 130,750 $ - $ 130,750 $ 2,615,000 $ 2,615,000 $ 2018 130,750 $ - $ 130,750 $ 2,615,000 $ 2,615,000 $ 2019 130,750 $ 980,000 $ 1,110,750 $ 2,615,000 $ 1,504,250 $ 2020 75,213 $ 1,504,250 $ 1,579,463 $ 1,504,250 $ - $ 2021 - $ - $ - $ - $ - $ 2022 - $ - $ - $ - $ - $ 2023 - $ - $ - $ - $ - $ 2024 - $ - $ - $ - $ - $ 2025 - $ - $ - $ - $ - $ 2026 - $ - $ - $ - $ - $ 2027 - $ - $ - $ - $ - $ 2028 - $ - $ - $ - $ - $ 2029 - $ - $ - $ - $ - $ 2030 - $ - $ - $ - $ - $ 2031 - $ - $ - $ - $ - $ 2032 - $ - $ - $ - $ - $ 2033 - $ - $ - $ - $ - $ 2034 - $ - $ - $ - $ - $ 2035 2036 TrackLine Business Park - PHASE I Ogden Business Exchange Bridge Loan SCHEDULE Summary by Year ---PAGE BREAK--- Ogden Business Exchange HUD 108 Loan Application Page I 16 APPENDIX D – SUPPLEMENTAL DOCUMENTATION ---PAGE BREAK--- Ogden Business Exchange HUD 108 Loan Application Page I 17 ---PAGE BREAK--- Ogden Business Exchange HUD 108 Loan Application Page I 18 ---PAGE BREAK--- Ogden Business Exchange HUD 108 Loan Application Page I 19 ---PAGE BREAK--- Ogden Business Exchange HUD 108 Loan Application Page I 20