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CDA weighs TIF loan up to $1.85M to help Element 84 recover flood damage
Summary
Element 84, a roughly 203-unit development, suffered about $3 million in flood damage; the developer requested up to $1.85 million from TIF 11 to cover part of the cost. Staff said the TIF has positive cash flow and presented a hypothetical 6–7 year repayment at about 7% interest; detailed negotiation moved to closed session.
Staff presented a request tied to Element 84, a roughly 203‑unit multifamily building within TIF 11 that experienced about $3 million in flood damage last August. The developer asked the CDA to consider a loan from TIF resources to cover a portion of the cost — a request for up to $1,850,000 was discussed — and staff presented cash-flow analysis showing the TIF has produced positive increment largely from the Element 84 development.
Staff described a possible loan structure that could partially bridge recovery costs, noting illustrative terms discussed at the meeting included a six‑year payback and a 7% interest assumption. Staff and members raised risk points, including the effects of SBA or private financing and the requirement that the CDA would not want to be subordinated behind other lenders. "They had $3,000,000 of damage...they requested up to 1,850,000 of the 3,000,000 in damages," the presenter said. Board members asked whether granting assistance would alter the TIF closing date; staff said the TIF could still close in 2029 under the projected cash flows. The board moved to discuss specific negotiation strategy in closed session.
