Consultant recommends TIF assistance, look‑back provisions for proposed Timber Ridge senior housing project

Shane of Eller's and Associates presented the city's contracted review of a Trident Development proposal for a multi‑family senior housing project, which includes memory care and a mix of studio, one‑ and two‑bedroom units.

Shane summarized the financing profile and the consultant recommendation: the project is roughly a $26,600,000 development with an estimated development cost of about $330,000 per unit; operating costs for service‑heavy units (rent+services) were cited at about $36,000 per unit per year in the consultant's analysis. He said the developer initially requested 90% of TIF (tax increment financing) receipts for 20 years totaling about $3,000,000 but that staff and the consultant had adjusted the recommended TIF amount downward based on county assessor values and conservative underwriting.

The consultant recommended a TIF principal note of about $1,100,000 financed at 6% and backed by up to 90% of the TIF generated by the project over a term of up to 20 years, with the practical possibility of earlier payoff. He described a look‑back provision to be applied after stabilization with a 16% hurdle rate: “If it's more than that, then we start adjusting the TIF down and potentially to 0,” Shane said, explaining that the look‑back would reduce subsidy if the project outperforms projections.

Council members asked detail questions about how services are billed versus traditional rent and requested developer pro formas for more specific revenue and rent assumptions. Shane said rent and services are distinct and recommended questions about specifics be directed to the developer.

No final council approval of a TIF agreement was recorded in the provided transcript segments; Shane and staff indicated that, if council chooses to move forward, staff would draft a TIF (subsidy) agreement and return to the council for approval.