Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Housing Finance topic
No spam. Unsubscribe anytime.
Committee advances $39M bond and $1.775M TIF request for Grain Exchange housing conversion
Summary
The committee supported CPED's recommendation to advance Sherman Associates' proposal to convert the Grain Exchange into 232 mixed-income units, recommending up to $39,000,000 in housing revenue bonds and up to $1,775,000 in tax increment financing; the committee approved forwarding the financing for final council action.
City staff told the Business, Housing & Zoning Committee on July 7 that Sherman Associates proposes converting the historic Grain Exchange in Downtown West into a 232-unit mixed-income development and requested municipal financing to move the project toward construction.
Emily Carr, a supervisor on CPED's residential finance team, said staff recommend up to $39,000,000 in tax-exempt housing revenue bonds paired with 4% low-income housing tax credits and up to $1,775,000 in tax increment financing (TIF) to support the project. The plan would create 232 residential units—210 affordable at 60% area median income (AMI) and 22 at market rate—along with roughly 32,000 square feet of commercial and office space. Carr said tax-credit syndication proceeds are expected to contribute more than $36,000,000 and total development costs were estimated at just over $122,000,000.
Development finance manager Matthew Hendricks and urban scholar Braden Rote described TIF mechanics, statutory constraints, and recapture provisions. Hendricks noted that TIF must meet a statutory "but-for" test and be used only for eligible project costs; Rote outlined recapture provisions that reduce TIF support if the developer realizes substantial proceeds on sale or refinance.
Council members asked about who bears project risk, AMI income thresholds, and the duration of affordability. Staff confirmed 60% AMI ceilings (for example, up to $78,900 for a family of four and $63,100 for a family of two), and said tax-credit requirements create a minimum affordability term of 30 years while practice often extends affordability through additional agreements.
Council Member Schafer moved to advance the requests; the motion was seconded and the committee approved the financing recommendation. Staff said if approvals proceed, the project could close and begin construction this fall.
