20221208 CC Winter Hill Presentation — File 22-2105

Winter Hill Implementation Update - 299 Broadway Urban Center Housing Tax Increment Financing (UCH-TIF): A New Approach to Affordable Housing Creation

Outline 2 A. Project Background B. What is UCH-TIF? C. Why UCH-TIF? D. Next Steps for UCH-TIF E. Important Project Milestones

A.1. Project Background: Project Site 3 Vacant Since 2007

A.2. Project Background: Winter Hill Neighborhood Plan (2016) 4 299 Broadway a/k/a Temple Square has been imagined as a redevelopment site with 200+ units of housing, at least 20% of those affordable, and additional green space since the 2016 Winter Hill Neighborhood Plan 2016 Concept Plan for redeveloping “Temple Square”

A.3. Project Background: Winter Hill Urban Renewal Plan (2020) 5 2020 Concept Plan for redevelopment of “Temple Square” from the Winter Hill Urban Renewal Plan carried the same concepts forward with small changes

A.4. Project Background: Developing Partnerships 6 Spring 2021 ● Winter Hill Urban Renewal Plan is approved by City Council ● Property owner for the Star Market grants development option to Mark Development 2021: Moved ahead with fulfilling Community Involvement goals ● 2 preliminary community meetings with Mark Development ● 3 permitting neighborhood meetings with Mark Development ● Setting up a Civic Advisory Committee for ongoing local feedback

A.5. Project Background: Developing Partnerships Continued 7 ! Mid-stage environmental study of the site revealed asbestos contamination that prevents underground parking Option 1 Build above ground parking garage Option 2 Build a highrise Option 3 Build more affordable housing Financeable options … Spring 2022 - Mark Development brings in Beacon Communities, a specialist in affordable housing development as a project partner

A.6. Project Background: Current Site Plan 8 2022 Site Plan submitted to the ZBA maintains key site layout goals ❖ 288 Units ❖ 132 Affordable Units ➢ 17 units @ 80% AMI ➢ 99 units @ 60% AMI ➢ 16 units @ 30% AMI ❖ Community green space ❖ Pedestrian right-of-way through center

Current Submitted Proposal $22.8M Acquisition ~ 300 Units ~ 50% Affordable 0.0 spaces/unit $13M - $20M Deficit Revised Mark/Beacon Proposal $22.8M Acquisition ~ 300 Units ~ 40% Affordable 0.0 spaces/unit No Deficit Original Mark Development Proposal $22.8M Acquisition ~ 300 Units ~ 20% Affordable 0.5 spaces/unit $18M Deficit A.7. Project Background: Evolution of Project Proposals 9

A.8. Project Background: Current Financial Gap 10 Rising Construction Costs & Increased Interest Rates: Costs Associated with Increased Affordability: $9M - $16M $4M Total Estimated Deficit: $13M - $ 20M Estimated Cost Escalation

B. What is UCH-TIF? A statutory program operated by the Department of Housing & Community Development (DHCD) that authorizes cities and towns to promote housing and commercial development through real estate tax exemptions on all or part of the increased value of improved real estate for up to 20 years. 11 UCH-TIF Requires: ● The area of benefits to be a primarily commercial district ● New development to be primarily residential ● New units to satisfy certain affordability thresholds ○ 15% at or below 80% AMI; or ○ 25% at or below 110% AMI; or ○ Meet existing inclusionary zoning requirements

C. Why UCH-TIF? ● A financing tool to help close the gap in affordable projects struggling to get underway due to rising interest rates and escalated construction costs ● An opportunity to redevelop the decadent Temple Square site; and ○ Meet the goals of the Winter Hill Neighborhood Plan and Urban Renewal Plan ○ Restore Winter Hill as a main street destination ○ Create significant affordable housing opportunities and new jobs ○ Increase future tax revenue 12 Temple Square

D. Next Steps for UCH-TIF 1. Designate an UCH-TIF Zone 2. Develop an UCH-TIF Plan and Form of an UCH-TIF Agreement 3. Hold a public hearing and take comment on the proposed UCH-TIF Plan, Zone, and Form of Agreement 4. Review and approval of UCH-TIF Zone, Plan, Form of Agreement, and any negotiated Agreements by City Council 5. Execute any negotiated Agreements 6. Submission of the UCH-TIF Plan, Zone, Form of Agreement, and any executed agreements to DHCD 13

E. Important Project Milestones January 2023 ● Beacon Communities submits tax credit application to DHCD February 2023 ● Public hearings & review of UCH-TIF application by City Council March 2023 ● UCH-TIF Application submitted to DHCD ● Permitting finalized by ZBA Summer 2023* ● DHCD awards Low Income Housing Tax Credits and state subsidies Winter 2023 ● Financing closing & construction start ● Walgreens move start * Awards are subject to DHCD and Developers may need to re-apply for state subsidy sources 14

Questions?