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• Building systems/design out of date• Excellent location• Underutilized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