1. Multi-Family Housing Limited Tax Exemption Program Applications City Center Redevelopment Authority December 17, 2015 Peggy Sheehan, Program Manager

2. Rental Market Update Overview of Proposed Projects Financial Analysis Applicant Comments/Questions Discussion/Next Steps Presentation Overview CCRA Multi-Family Tax Exemption Program Application Review - 2

3. Rental Market Update- Norris Beggs Simpson Report CCRA Multi-Family Tax Exemption Program Application Review - 3

4. Rental Market Update- University of Washington Runstad Center CCRA Multi-Family Tax Exemption Program Application Review - 4

5. Rental Market Update- University of Washington Runstad Center CCRA Multi-Family Tax Exemption Program Application Review - 5 The September 2015 report reflects a large increase in units from the March 2015 report; the presumption is that these are new units not yet fully leased

6. Rental Market Update- Affordable Rents (HUD) CCRA Multi-Family Tax Exemption Program Application Review - 6 The September 2015 report reflects a large increase in units from the March 2015 report; the presumption is that these are new units not yet fully leased 1-Person Household2-Person Household4-Person Household Income LevelAnnual Income Max. Affordable Rent Annual Income Max. Affordable Rent Annual Income Max. Affordable Rent 115% AMI $59,225$1,481$67,620$1,691$84,525$2,113 100% AMI $51,500$1,288$58,800$1,470$73,500$1,838 80% AMI $41,200$1,030$47,040$1,176$58,800$1,470 60% AMI $30,900$773$35,280$882$44,100$1,103 50% AMI $25,750$644$29,400$735$36,750$919 30% AMI $15,450$386$17,650$441$24,250$606 Income source: US Department of Housing and Urban Development effective 3/16/15 Max. rent calculated as (annual income/12)*30% For units renting to households below 40% AMI, contact City staff.

7. Rental Market Update- Downtown Project Pipeline CCRA Multi-Family Tax Exemption Program Application Review - 7  Fourteen developments and more than 1,200 units using City’s multi-family limited tax exemption program  Eleven approved and three pending  Six include 20%+ of units targeting low- moderate income tenants

8. Rental Market Update- Overview of Current Projects - 8

9. Overview of Current Projects CCRA Mutli-Family Tax Exemption Program Application Review - 9 Project Summary19 th & Broadway16 th & E StreetHeroes Place Lot Size - Square Feet 10,00029,00025,000 Total Development Square Feet 19,00032,50026,432 Number of Stories 325 Floor Area Ratio 1.901.121.06 Commercial Square Feet --- Total Development Cost (Exc'l Land) ~$13,700,000~$4,250,000~$3,650,000 Number of Residential Units 3648 Studio 28-20 Live Work One Bedroom 654 Live Work Two Bedroom 280 One Bedroom – One Bathroom 056 Two bedroom – One Bathroom 03012 Three Bedroom 003 Penthouse 003

10. Overview of Current Projects CCRA Mutli-Family Tax Exemption Program Application Review - 10 Project Summary19 th & Broadway16 th & E StreetHeroes Place Proposed Rents Studio $850$1,008 Live Work One Bedroom $1,150$800$1,650 Live Work Two Bedroom $1,200$1,150 One Bedroom – One Bathroom $1,100 Two bedroom – One Bathroom $1,275 Low/Moderate Income Units? Yes – 20% No Length of Exemption 12 Years 8 years Parking On Site 102063

11. Overview of Current Projects-Rent Comparisons CCRA Multi-Family Tax Exemption Program Application Review - 11 DevelopmentStudio Rent1 BR RentRent $/SF Funstad Survey Sept. 2015 $596$837$1.31 The Uptown$1,155$1,335$1.62 13 West$714$754$1.22 15 West$671$708$1.09 1510 C$850$1,200$1.51 19 th & Broadway$850$1.74 16 th & E Street$1,100$1.75 Heroes’$907-$1,108$1,650$1.03

12. Financial Analysis- Impact of Exemption CCRA Multi-Family Tax Exemption Program Application Review - 12  Taxing Districts  Defers placement of new residential construction value on tax roll  New non-residential construction added as usual and land value remains on tax roll  All other taxes apply as usual  Property Owner  No assessed value added for multi-family residential improvements  No property taxes due for limited term

13. Financial Analysis- Downtown Investment Guidelines CCRA Multi-Family Tax Exemption Program Application Review - 13  Developed in 1999 to help guide City’s direct investments in Downtown revitalization  Per August CCRA meeting: not directly applicable to tax exemption program but still reviewed  Fiscal Benefit: Neutral or positive net present value of City’s financial participation  Developer Return: Limit City funds to an amount that allows the developer a fair return  City Debt: Minimize use of City debt  Recent Addition: 1,500 new units supporting a rich socio- economic population

14. Financial Analysis- Observations CCRA Multi-Family Tax Exemption Program Application Review - 14  Fiscal Benefit  All three projects provide a positive net present value fiscal benefit over 20 years (at 4%)  The NPV of new property, construction sales tax & utility taxes exceeds the NPV of the deferred property taxes by a factor of 1.9 to 2.5 over 20 years  Developer Return  Developer returns on both projects are not high relative to a risk adjusted/market return

15. Financial Analysis- Observations CCRA Multi-Family Tax Exemption Program Application Review - 15 Observations19 th & Broadway16 th & E StreetOur Heroes Place NPV City of Vancouver Taxes: Proposed Development $227,000$302,000$459,589 NPV City of Vancouver Taxes: No Development $13,000$33,000$47,636 Estimated Construction Jobs (IMPLAN Multiplier) 2635110

16. Project Design-16 th & E Street-Site Plan CCRA Multi-Family Tax Exemption Program Application Review - 16 15 th Street -> Project address: 500 E 15 th and 500 S 16 th Street

17. Project Design-16 th & E Street-Elevations CCRA Multi-Family Tax Exemption Program Application Review - 17 North Elevation Facing 16 th Street Building 1 West Elevation Facing E Street

18. Project Design-16 th & E Street-Elevations CCRA Multi-Family Tax Exemption Program Application Review - 18 South Elevation Facing 15 th Street Building 4 West Elevation Facing E Street

19. Project Design-19 th & Broadway-Site Plan CCRA Multi-Family Tax Exemption Program Application Review - 19 Project address: Northeast Corner of Intersection Broadway and East 19 th St

20. Project Design-19 th & Broadway- Elevations CCRA Multi-Family Tax Exemption Program Application Review - 20 South Elevation Facing 19 th Street

21. Project Design- Heroes’ Place CCRA Multi-Family Tax Exemption Program Application Review - 21 North Tower North Elevation South Tower North Elevation Project address: 409 E Mill Plain Blvd and 412 E 13 th Street

22. Project Design- Heroes’ Place CCRA Multi-Family Tax Exemption Program Application Review - 22 East Elevation

23. Project Design- Heroes’ Place CCRA Multi-Family Tax Exemption Program Application Review - 23 Top View

24. Development sub-committee comments Board member questions/discussion Questions staff should address prior to taking to City Council Specific CCRA comments to forward to City Council Discussion CCRA Multi-Family Tax Exemption Program Application Review - 24

25.  City Council workshop and consideration of tax exemption agreements in January  Tax Exemption program to be reviewed in 2016 Next Steps/Timeline CCRA Multi-Family Tax Exemption Program Application Review - 25

26. Peggy Sheehan, Program Manager Community and Economic Development Peggy.Sheehan@cityofvancouver.us Chad Eiken, Director Community and Economic Development Chad.Eiken@cityofvancouver.us Questions and Discussion CCRA Multi-Family Tax Exemption Program Application Review - 22