City Federation of Women’s organizations Redevelopment proposal 100 West Seneca Street Julianne Kwon John Norwood Chris Persheff Prajna 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Desire for income to break even on operation expenses – Kitchen; auditorium; office spaces Building systems/design out of date Excellent location Underutilized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 IDA Downtown Density Incentive Program Policy IDA Downtown Density Project Application “NYS Housing Finance Agency Releases Revised 80/20 Criteria” Tax-Exempt Bond Financing for New York City Multifamily Developments