706 Market TIF Application

7/29/2019 706 Market TIF Application

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706 MARKET

TIF APPLICATION

Presented to the City of St. Louis

TIF Commission

August 29, 2013



Application

Exhibit A

Exhibit B

Exhibit C

Exhibit D

Exhibit E

706 MARKET

Table of Contents

List of St. Louis City Residents or Films, Women and

Minorities Associated With the Project

Map of the Redevelopment Area

Anticipated Pro Forma

Projected TIF Revenues

Preliminary TIF Redevelopment Schedule



TIF APPLICANT'S STATEMENT OF EXPERIENCE AND QUALIFICATIONS

A. Applicant

Market TIF. Inc. (or its affiliate) 314.993.5800/314.993.5826Applicant's (Developer's) Name Telephone/FAX

7700 Forsvth. Suite 1210 St. Louis, MO 63105

Street Address City/State/Zip

TBD

Applicant's IRS Number

Garrick R. Hamilton, General Counsel

314.993.5800/314.824.8022/[email protected]

Name and Title of Responsible Officer Telephone/FAXIEmail

7700 Forsyth, Suite 1210 St. Louis, MO 63105Street Address City/State/FAX

Garrick R. Hamilton. General Counsel

314.993.5800/314. 824.8022/ghamilton(Q).komangroup.com

Attorney for or Authorized Representative or Applicant Telephone/FAXIEmail

7700 Forsyth, Suite 1210 St. Louis. MO 63105Address City/State/Zip

List other development team pmiicipants such as attorneys, consultants, bond consultants,

architects, engineers, etc. affiliated with the applicant on this project, together with their addressand telephone number.

Prospective Tenant: The Laclede Group, Inc • 720 Olive Sh'cet, Suite 1307, St. Louis, MO

63101.314.342.0873

Corporate Planning!: Arcturis, 720 Olive Street. Suite 200. St. Louis. MO 63101

Interior Architect 314.206.7100

Consultant: DFC Group, Inc • 7777 Bonhomme, Suite 1210, St. Louis, MO 63105

314.725.8555

Contractor: TBD

Accountant: RubinBJ'own LLP, 1 N. Brentwood Blvd • St. Louis. MO 63105

314.290.3300

Th e aforementioned reflects potential participants anticipated at this time. all ofwbich are

subject to change.



List all St. Louis City Residents and firms, women and minorities associated with thedevelopment entity or members of the development team,

See attached Exhibit A for a list of St. Louis City residents and firms and women

and minorities associated with the development team. As the l)rOposed redevelopment

project has not reached the bidding stage, the names of all City residents, women and

minorities associated with the pmject are unknown a( this time, Th e Developel' will comply

with the applicable Mayor's Executive Onlel's conccl"Ding MBE and WBE pal'ticipation

and construction requiJ'ements.In addition, it should be noted Chat Th e Laclede Group. Inc, ("The Laclede Group")

is the anticipated tenant of the proposed PI·ojeet. The Laclede Group has demonstrated acommitment to women in leadership positions. The company is currently led by its CEO,

Suzanne Sithcnvood, In addition. a tlumbcl' of kev positions within Th e Laclede Group,

including, but not limited to. those of Chier Administmtive Officer, Controller. Treasurel'.

and Vice President of Governance and Standards are all currently held by women.

B. Pl'oject Descr iptionA brief description of the proposed project.

Market TIF. Inc., an affiliate of The Koman GI'OUp (together with their respecitve

affiliates, the "Developel''') requc..<;ts $8.148 million in tax increment financing (TIF) fo r theproposed redevelopment project (the "Redevelopment Project" 01 ' "Project"). which

consists of th e estimated $46.4 million rehabilitation of the building in Downtown St. Louis

commonlv known and numberell as 700-706 Market Street (as depicted on Exhibit Battached hereto, the "Redevelopment Area" 01 ' " Area"), which was pI'cviouslv known as the

"General American Life Insurance Building" or the "GenAmerica Building" (the"Building"). The six-stolY Building is architectul'allv significant in that it was designed by

noted architect Philin Johnson. and represents one of a limited Ilumbel' of buildings he

dcsigned west of the Mississippi. and the only one he designed in St, LOllis. The Buildingwas constructed as the headquarters fOI' the General American Life [nsul'ance Company.

After the acquisition of General American hy MetLitc in 1999, the Building was vacated,

with the last employees vacating tbe Building in 2004.

Th e Redevelopment Project PI'oposes the rehabilitation of the Building into officespace and supporting facilities, Due to the Building's orientation and lavout, it is almost

exclusive'" mal'lietable for use by a single tCllant. The Developel' anticipates average

allnual rents in the range of approximately $22-25 per square foot. As the Building lackssufficient intel'iol' (larking spaces, additional parl.ing will Ileed to be obtained rrom neal'bygal'Hges located outside the Redevelopment Area, complicating attcmpts at redevelopment.

Tbese ratcs are at the high end of those found in Downtown, evidencing the desire of the

Developer and The Laclede Group to restore this Building to a Class A standard.

The Developer has received a Jll'climilllu'y commitment (n l ln The Lac/cue Gl'OlIll to

relocate its headquarters to the Building, The Laclede Group. Inc. is a public utilitv

holding company committed to Ill'oviding reliable natural gas service through its regulatedcOl'e utility operations while engaging in non-I'cgulated activities that pl'Ovide opportunities

rOl' sustainable growth. Its primarv subsidiary -- Laclede Gas Company -- is the lal'gest

Datuml gas distribution utility in Missouri, sen/illg approximately 631.000 residential,

commercial and industrial customers in the City or St. Louis and ten other counties in

eastern Missouri. Its pl'imary non-regulated activities include Laclede Energv ResoulTes,

Inc . a natural gas marketer located ill Sf. Louis, Missouri. The Laclede GI'OUp was

2



founded in 1857 as The Laclede Gas Light Company, and has been listed on the New York

Stock Exchange since 1889.

Mo.·e specific information concenting thc costs and allocations of the Project arc se t

forth in Exhibit C. attached hereto. The Project, which requires the assistance of TIF to

proceed with tbe substantial rehabilitation proposed, is still in its initial pre-design phase.

As such, all figurcs and numbers, including, bu t nol. limited to, the costs, square footage amI

use allocations, an d revenue sources se t forth herein ar e based U(lon the preliminary

contempllllion of the Projcct at this time an d ar c subject to lIdjustmcnt or modification

upon additional exploration and development assite or market conditions ma v dictate.

C. Substantial an d Significant Public Benefit

A description of the public benefit to the City resulting from the development of this project:

The Redevelopment Project would provide seve..al impo.·tant public benefits to the

City of St. Louis. Perhal}s most importantlv, it would providc the City an onportunity tl)

retain the headquarters of The Laclede Group Hnd the approximatelv 500 emplovees itcurrentlv maintains in Downtown. This co.·poration and its employees genel'atc significant

economic impacts fo.· the City b,r shopping at, ealing at, and employing othe.' businesses

located in Downtown . The number of persons employed bv The Laclede GroUI) al the

Project is expected to grow by 50 jobs shortly following coml>lction of th e Project, and bv

200 jobs over twelve years.

Th e A.·ea, which has been entirelv vacant since 2004, is unde.·utilized and in

deteriorating phvsical condition; in its current state, the Area constitutes it significant

sou.·ce of blight in this part of the City of St, Louis. Redevelopment and adaptive .·cuse of

the Area thrHugh cHmpletion of the Project will eliminate the phvsical blighting conditions

that plague the Area. Th e Building sits at a prominent location along Ma .·ket Street. in

close proximity to Busch Stadium. Ballpark Village an d othe.· ",on! pmductivc office

prope.·ties; the vacancy of the Area represents a significant an d notable gap that detracts

from the (lcl·ceptiCln of the City by outsiders. The renovation and rejuvenation of IhisBuilding is expected to allow the City to maximize the potential of the PI·opel,ties 10('ated ill

this portion of Downtown.

Furthennore, the Project will provide the following public benefits:

• Accommodate the anticipated growtb of Th e Laclede Groull ' an established

corporate citizen of the City, within Downtown, allowing the City to receive lIew

tax revenues from The Laclede Group's growth.

• [ncrease the value of this property and others around it. enhancing the City's

tax base.

• Create commercial space that wiII signilicaotIv enhance the viability uf other

commercial developments in Downtown thus supporting Downtown's reputation

as the commercial backbone of th e region.

• Presc,·ve a significant a.·chitectural propel·tv listed on the N:ltional Rcgiste.·.• Provide a significant amount of new commercial space to sCI"Ve the Downtown

population, resulting in increased tax revenues to the City without c.'eating a

disproportionate demand for City se."Vices.

• Add more critical mass to the area north of Ballpark Village, potentially driving

improved market demographics critical to underwriting future phases of that

high profile project.

.,

.J



• Ameliorate the physical conditions that have encouraged the presence of

homelessness in the Area.

Th c Redevelopment Project would cure the conditions of blight that currently

plague the Redevelopment Area, an d would provide other significant economic and social

benefits to the welfare of the City.

D. TI F Nccessary for the Implementation of this Project.

Demonstrate that without TIF this project is not feasible and could, therefore, not be

developed:

Th e si!!nificant phvsical limitations associated with the Building require the

assistance of TIF in o"der to make the Project as a whole viable. As noted above, the

Building was originally designcd and consh'ucted for usc bv a single large tcnant. and does

not lend itself well to being broken into smaller units. Tbe limited universe of potenthll

tcnants imJ)ai.·s the Project's marketability. The Building suffers from other phvsicalinefficiencies that would require substantial investment in order to unlock economic value.Furthel'more, the Area suffe rs from physical inefficiencies, including, but not Iimitcd to,

thc lack of onsite parking, that fl'ustrate its economic potential. [n addition to significant

improvemcnts to thc Building required to accommodate modern workplace technologiesand cllvironments demanded by Downtown occupants. tbe Project will involve a significantoveJ'lI",,1 of the Building's mechanical, electrical, plumbing and fire protcction s ,'stC1l1S,

substantially increasing redevelopmcnt costs. Without TI F and other tax credits. thc

Redevelopment Project is not financially feasible and would not occur.

The assistance of TIF is necessary to cause tbe Pl'oject to occur due to the

substantial costs associated with the Pl'Oject and the limited marketability of tbe Project.

TIF is necessary to support this important commercial development.

E. BondlNote Coverage:Preliminary evidence showing that the projected PILOTS and EATS generated by this project

will cover the projected TIF debt service at least 1.25 times.

The Dcvclope.· named herein rcquests that the City issue TIF obligation(s) in

amount e()lIal to approximately $8.148 million plus issuancc costs with respect to thc

Project. At the request of the Developer. the City mav issue TIF obligations to a third party

to evidence the City's obligation to reimburse Develol)cr for reilllbUl'sable project costs. As

shown in the Projected TI F Revenues included herein as Exhibit D. such TIF Amount

includes a debt service coverage ratio of 1.1 with respect to aU PILOTS and 1.25 with

respect to all EATS.

Upon .-eceipt by the City of a written request bv Developel' and cvidcnce that such

developcl' has mct cea·tain critcl'ia as agl'ccd UpOIl hy the City and such Devcloper, thc City,

or one of its agencies, shall immcdilltely proceed to issue tax inCl'cmcnt financing bonds to

repay thc TTF obligalion(s). The TIF Bonds hall be reimbursed solelv rrom (he revenue

stream of PILOTS and EATS genel'ated by the Project over twenty-three veal's.

F. TIF Assistance Ratio

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Show what percent the proposed TIF would be of the total overall anticipated development

budget.

The Developer is requesting a $8.148 million (!)Ius issuance costs) TIT with respect

to Project, which amount e9 uats approximatelv 17.5% of the overall anticipated

31ml'oximatcly $46.447 million budget for the Project. The requested TIF is based on100% of all P[LOTs alld 50% orall EATs generated by tbe Project.

G. Public Infrastructure

Show what percentage of the overall TIF budget would be invested in public infrastructure.

The construction of the Redevelopment Project will involve improvements to the

sidewalks or extel"iol' portions of the Redevelopment Area, which mav involve, but need not

be limited to, utility infrastructure and facade improvements.

H, Available Alternative Financing

Provide evidence that the applicant has explored alternative financing methods for thisproject before applying for the use ofthe TIF .

The Developer expects to utilize both Federal Historic Preservation Tax Credits an d

Missouri Historic Ta x Credits with respect to the Project.

I, Financing and Technical Ability

Provide evidence that the applicant possesses financial and technical ability tocomplete/operate this project.

The Developer entitv is an aftiliate of The Koman Group, L.L.C. ("TKG"). TKG

is a fullv integrated rcal estate developel' and owner, managing all aspects of a I'eal estate

investment frolll inception to disposition, Since 1990, TK G has developed more than S 1

billion in new p.-ojects, structured more than $1 billion in mortgage-backed, prefened

equity and joint venture fimIDcings, lind bas performed consh'uctioll, leasing, and pl'opel'ty

management for assets totaling more than 5 million square feet, TKG has specificexperience with historic redevelopment for commercial usc, having recently completed the

successful rehabilitation of the Cupples 9 Building, which is app.-o_ximatelv 99% leased and

houses Oshol'n & BaIT, Ynrbnds, Macl<cy Mitchell. Asvnchronv Solutions, Pedal the Cause

and Flving Saucer. Th e conwanv's other representative projects include Centene Plaza in

Clayton and the CityPlace campus in Creve Coeur,

J. EquitylPuformancc Bond

Show that the applicant has access to sufficient equity/performance bond needs of this

project.

To be supplemented if needed.

K. City Credit Rating

5



Demonstrate that this public/private partnership will not negatively impact the City's credit

rating.

As is demonstnlted by the calculations attached hereto, tbe future PILOTS aud

EATS that will be gencrated by the Project will be the sole source of revenue to payoff the

TIF. The Developer is Ilot seeking any guarantees from the City of Sf. Louis with respect to

the TIF. Any TI F Note or other TI F obligation issued bv the Citv, or one of its agencies. will

be ,'eimbursed solely from the revenue stl'eam of PILOTS and EATS generated by the

Redevelopment Project over a twenty-three yen period.

L. Jo b Creation

Estimate the total number of jobs that will be created by this project together with a

preliminary estimate of anticipated skills, education levels and salary ranges expected.

It is anticipated that thc Redevelopment P.·oject will create apPl"Oximatcly 200 jobs

associated with the expallsion of The Laclede G.,oup's operations ove.· a pel"iod of

app.·oximatclv twelve yeHrs, ill addition to the aflJJl"Oximatclv 500 jobs that will be retained.

Furthermo,'e, additional jobs will be created in connection with the constl'Uction,

management and maintenance of these commercial snaces. Thc skill and education levels

required for these jobs varY great Iv by the job. !VIanv office emplovees are likely to have

college, graduate or professional degrees.

M. Economic Impact of Adjacent Properties

Outline how this project might act as a catalyst for nearby development and/or help stabilize

adjacent neighborhoods.

The Project is expected to have a significant economic impact on otlle.· properties in

this po.·tion of Downtown St. Louis, As noted, the Project is expected to fmillc.' solidify thereputation of Downtown as the commercial cente.' of the region. The Project also has the

potential abilitv to draw Dew tenants to tbe market in othe.' locations. As such, the

redevelopment of this prouerty is eXI)ceted to inc.reasc the value of SIIITouII(Jing properties.

Furthermore, the anticipated relocati.oll nnd retention of The l .aclede Grolll}, a

longstanding and prominent Downtown tenant, should increasc confidence ill DowntowlI

and encourage future incremental development.

N. Broad Customer Base fo.' Commercial Uses

If this project includes commercial uses, outline the potential tenants, demonstrate how the

project will either attract customers from outside the City or provide retail/services currently

in shOlt supply in the City, and discuss how the new uses might impact nearby competition.

As noted above, it is expected that The Laclede Group will OCCUPy all of the SI.ace in

the Building upon completion, Although the Project is not nccessat"ilv dependent upon this

commitment. it is dcmonstrative of the anticipated market fo.· the PmjecL Given the

physical orientation of the Building, which restricts its use bv more than one tenant, the

Project is not anticipated to have an anti-competitive cITed on the l o c ~ . 1 office mal"lcet.

furthermore, given the lack of newlv constructed Class A oftice space in Downtown over

the past two decades, significant rehabilitation p.-ojects such as this olle are crucial to the

6



City's ability to aHa-act and retain large office users who a.-e seeking significant quantities of

the highest quality space.

O. Residential Projects

rf this project includes residential uses, outline how it will help fulfill a significant need for

diverse income housing in the City, and how it will impact public services of the City and

other taxing districts,

Th e Project does not contemplate any residential uses.

P. Other Public Incentives

List other public incentives, if any, which are being sought by the applicant in furtherance of

this project_

In addition to this request for tax inc.-ement financing, the Develope.' will sect,

Fetleml Historic Preservation Tax Credits and Missouri Historic Tax Credits for thisProject; the Developel' may also seek New Market. Tax C.'edits. It is possible that tcnaot(s)

may also seek incentives.

Q. TIF Obligations not Guaranteed by the City.

Acknowledge that the TIF being sought will not require any guarantees by the City_

The Til<' being sought will be paid soleI v from the revenues that will be genenlted bv

the Redevelopment Project and will not require nnv guarantees bv the City,

R. Budget/Source Outline

Outline the expected overall development costs and the proposed sources of funding _

See Exhibit C "Anticipated Pro Forma" for details of the overall development costs

and proposed sources of funding.

S. Site Contl'ol

List all properties needed for this project, their CUlTent ownership, their status of occupancy,

and proposed method of acquisition and relocation, if necessary_

The Developer is currently the owner under contract ofthe Area,

T. ScheduleProvide a preliminary project implementation schedule _

See Exhibit E for the proposed TIF Redevclopment Project Schedule.

[Remainder of page intentionally left blank .]

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I hereby certifY that all the information in this application is true and complete to the best of

my knowledge.

MARKET TIF, INC.

August 27,2013

8



Exhibit A

List of St. Louis Residents and/or Firms and Minority and/or Women Businesses

Associated with the Project

City Residents and/or Firms Associated With Project

• The Laclede Group

• Suzanne Sitherwood, CEO ofThe Laclede Group

• Joshua J. Udelhoien, Chieflnvestment Officer of The Koman Group, L.L.e.

• Arcturis

• Margaret McDonald, Principal at Arcturis

Women andlor Minority Businesses Associated With Project

• Arcturis

• Suzanne Sitherwood, CEO of The Laclede Group

• Margaret McDonald, Principal at Arcturis

• Megan Ridgeway, Principal at Arcturis



ExhibitB

Map of the Redevelopment Area

I._ _ _ _ _ _ ....1 Redevelopment Area



Exhibit C

Anticipated Pro Forma



706 MARKET

Anticipated Sources and Uses

Acquisition Costs

Acquisition

Hard Costs

Soft Costs

Total Hard Costs (Core & Shell)

Tenant Impovements

Hard Cost Contingency

Architecture

Property Taxes During Construction

Legal - General

TIF-related Fees and Costs

Financing Closing Costs (Perm)Financing Closing Costs (Bridge)

Title & Escrow Fees

Soft Cost Contingency

Developer Fee

Leasing Commission

Financing Costs

Construction Loan Interest

Bridge Loan Interest

ITOTAl USES

SOURCES

TIF

Federal Historic Tax Credit Equity

State Historic Tax Credit Proceeds

Deferred Developer Fee

Other Construction Debt/Equity

ITOTAl SOURCES

$ 11,500,000

$ 13,190,871

$ 7,680,000

$ 1,209,129

$ 864,000

$ 116,959

$ 400,000

$ 100,000

$ 230,000$ 2,200

$ 50,000

$ 500,000

$ 7,740,000

$ 1,971,200

$ 540,404

$ 352,703

$ 46,447,4661

S 8,148,000

S 4,249,436

$ 4,329,113

$ 6,385,500

S 23,335,417

$ 46,447,466 1



Federal HTCs

Eligible Cost Basis

706 MARKET

Projected Historic Tax Credits

$ 21,247,179

Federal Credit Percentage 20%

Federal Credits $ 4,249,436

FHTC Pricing $ 1.00

Ne t FHTC Equity $ 4,249,436

State HTCs

Eligible Cost Basis $ 21,247,179

State Credit Percentage 25%

State Credits $ 5,311,795

SHTC Pricing 84%

Gross SHTC Proceeds $ 4,461,908

Less State Credit Fee $ (132,795)

Ne t

SHTC Proceeds $ 4,329,113



706 MARKET

Projected Net Operating Income

Build ing O c c u R a n c ~Total Building RSF 128,000

Occupied RSF 128,000

Occupancy % 100.0%

Stabilized Ollerating Projection

Rental Revenues 2015 2016 2017 IQ!§ 2019

Total Base Rent $ 2,944,000 $ 3,008,000 $ 3,072,000 $ 3,136,000 $ 3,200,000

Expense Reimbursement Revenue $ 5,472 $ 38,459 $ 72,377 $ 107,256 $ 143,123

Totof Building Revenue $ 2,949,472 $ 3,046,459 $ 3,144,377 $ 3,243,256 $ 3,343,123

Operati ng Expenses (excluding RE Taxes/PILOTs)

Janitorial $ 102,400 $ 105,472 $ 108,636 $ 111,895 $ 115,252

Utilities $ 192,000 $ 197,760 $ 203,693 $ 209,804 $ 216,098

CAM/General Exp $ 70,400 $ 72,512 $ 74,687 $ 76,928 $ 79,236

Security $ 51.200 $ 52,736 $ 54,318 S 55,948 $ 57,626

Insurance $ 38,400 $ 39,552 $ 40,739 $ 41,961 $ 43,220

Administrative Salaries $ 44,800 $ 46,144 $ 47,528 $ 48,954 $ 50,423

M a i n t e n a n ~ e Salaries $ 38,400 $ 39,552 $ 40,739 $ 41,961 $ 43,220

Administrative $ 25,600 $ 26,368 $ 27,159 $ 27,974 $ 28,813

Repairs & Maintenance $ 19,200 $ 19,776 $ 20,369 $ 20,980 $ 21,610

PM Fee $ 88,320 $ 90,240 $ 92,160 $ 94,080 $ 96,000

Totof Non-Tax Expenses $ 670,720 $ 690,112 $ 710,028 $ 730,484 $ 751,496

TOTAL PRE-TAX NOI $ 2,278,752 $ 2,356,347 $ 2,434,349 $ 2,512,771 $ 2,591,627



Exhibit D




706 MARKET


EAT . with Total

Assessed TIF Real Estate PILOTs with Pa'lfoll .and 12 S Increments

Year Value Ta)Ces PILOTs 11 (overage Payroll Earmngo; Taxes EATs (SO'A ) Coveraee with

Sase (2014) $ 1,280,000 $ 95,583

2015 $ 5,984,000 $ 446,849 $ 351,266 $ 319,333 38,500,000 $ 577,500 $

2016 $ 6,076,672 $ 453,769 $ 358,187 $ 325,624 41,097,000 $ 616,455 S

2017 $ 6,258,972 $ 467,382 $ 371,800 $ 338,000 43,815,170 $ 657,228 $2018 $ 6,258,972 $ 467 ,382 $ 371,800 $ 338,000 5 46,659,443 $ 699,892 $

2019 $ 6,446,741 $ 481,404 $ 385,811 $ 350,747 5 49,634,939 $ 744,524 $

2020 $ 6,446,741 $ 481,404 $ 385,821 S 350,747 S 52,746,970 $ 791,205 $

2021 $ 6,640,144 S 495,846 $ 400,263 $ 363,876 $ 56,001,053 $ 840,016 S2022 $ 6,640,144 $ 495,846 $ 400,263 $ 363,876 S 59,402,908 $ 891,044 $

2023 $ 6,839,348 $ 510,721 $ 415,139 $ 377,399 62 ,071,734 $ 931,076 $

2024 $ 6,839,348 S 510,721 $ 415,139 $ 377,399 63,933,886 $ 959,008 $

2025 $ 7,044,528 $ 526,043 S 430,460 $ 391,328 65,851,903 $ 987,779 S2026 $ 7,044,528 $ 526,043 $ 430,460 $ 391,328 67,827,460 $ 1,017,412 $

2027 $ 7,255,864 $ 541,824 $ 446,242 $ 405,674 S 69,862,283 $ 1,047,934 S2028 S 7,255,864 S 541,824 $ 446,242 $ 405,674 S 71,958,152 $ 1,079,372 S2029 S 7,473,540 $ 558,079 $ 462,496 $ 420,451 S 74,116,897 S 1,111,753 $2030 $ 7,473,540 S 558 ,079 $ 462,496 420,451 $ 76,340,403 $ 1,145,106 $

2031 $ 7,697,746 $ 574,822 S 479,239 S 435,672 S 78,630,616 $ 1,179,459 $

2032 $ 7,697,746 $ 574,822 $ 479,239 $ 435 ,672 S 80,989,534 $ 1,214,843 $

2033 $ 7,928 ,679 $ 592,066 S 496,483 $ 451,349 $ 83,419,220 $ 1,251,288 $

2034 $ 7,928,679 $ 592,066 $ 496,483 $ 451,349 S 85,921,797 $ 1,288,827 $

2035 $ 8,166,539 S 609,828 $ 514,245 $ 467,496 $ 88,499,450 $ 1,327,492 $

2036 $ 8,166,539 S 609,828 $ 514,245 S 467,496 S 91,154,434 $ 1,367,317 $2037 $ 8,411,535 $ 628,123 $ 532,540 $ 484,128 S 93,889,067 $ 1,408,336 $

$4,189,487

$1 ,280,000 2013 Assessed Value per City of St. Louis Assessor's Office

http://stlcin m lssou l org/citydat./newdesign/report.cfm ?ha ndle=1018 5000010

Assumes 2014 Assessed Value equal to 2013 Assessed Value - property acquired after 1/1/2014

7.4674% 2012 !I F Real property tax rate (excluding commercial surcharge and blind pension levy)

http://stlouis-mo gov/government/departments/assessor/documents/upload/12012-Ta.-Rates.pdf

Assumes tax rate fo r future years will be equal to 2012 rate

$l ,ZaO,Ooo 2014 Assessed Value assumed equal to Z013 Assessed Value

$5,984,000 2015 Assessed Value calculated ba sed upon

32% Commercial Assessment Rate

Multiplied by

$18,700,000 Z015 FMV, based upon

$11,500,000 Acquisition pricePLUS

$7,200,000 Value of improvements added in 2014 based upon

288,750 $ 231,000

308,218 $ 246,582

328,614 $ 262,891349,946 $ 279,957

372,262 S 297,810

395,602 $ 316,482

420,008 S 336,006

445,522 $ 356,417

465,538 $ 372,430

479,504 $ 383,603

493,889 $ 395,111

508,706 $ 406,965

523,967 $ 419,174

539,686 $ 431,749

555,877 $ 444,701

572,553 $ 458,042

589,730 $ 471,784

607,422 $ 485,937

625,644 $ 500,515

644,413 $ 515,531

663,746 $ 530,997

683,658 $ 546,927

704,168 $ 563,334

$3,972,559

0.5 Discount to co,t of improvements to reflect subSidy/level of completion by 1/1/15

Multiplied by

$14,400,000 Total Corej5hellimprovements

$6,076,672 2016 Assessed Value calculated using income approach based upon:

32% Commercial Assessment Rate

Multiplied by

$18,989,600 2016 FMV, based upon

$2,278,752 2015Pre-Tax NOI

Divided by

12% Assumed Assessor's Cap Rate

3% Assumed increase In Assessed Value In every odd year

Pavroll based on projections prOVided by prospective tenant

1.5% Combined Payroll and Earnings Tax Rate

$ 550,333

$ 572,206

$ 600,891$ 617,956

$ 648,556

$ 667,228

$ 699,882

$ 720,293

$ 749,829

$ 761,002

$ 786,439

$ 798,292

$ 824,848

S 837,423

S 865,153

$ 878,494

$ 907,455

921,609

951,864

966,879

998,493

$ 1,014,422

$ 1,047,462

INPV 8% $8,162,046 I

NOTE: The projections contained herein ar e merely estimates or fOlWard-looking projections based upon assumptions an d information of t he Developer

land its representatives and/or affiliates) or provided by its prospective tenant, the City of St . louis or others . There is no guaranty or assurance that

future performance will match these assumptions , as they are subject to a wide range of market and other risks or factors .



Exhibit E

Proposed Redevelopment Schedule

First TIF Commission Meeting 9/11/13

Mailing of Notice ofTIF Commission Public Hearing to Taxing Districts 9/12/13

(not less than 45 days prior to hearing) (RSMo. §99.830.3)

First Publication of Notice ofTIF Commission Public Hearing 10/10/13

(not more than 30 days prior to hearing) (RSMo. §99.830.1)

Submit Redevelopment Plan to TI F Commission 10/16/13

(at least two weeks prior to public hearing)

Wl"itten Notice to Property Owners 10/20/13(not less than 10 days priOl·to public hearing) (RSMo . §99.830.3)

Second Publication of Notice ofTIF Commission Public Hearing 10/23/13

(not more than 10 days prior to public hearing) (RSMo. §99.830.1)

Public Hearing by TI F Commission / Recommendation to Board of Aldermen 10/30/13

TI F Ordinances introduced 11 /15/13(no sooner than 14 and not more than 90 days after hearing) (RSMo. §99.820 .1 11)

HUDZ Committee Hearing on TIF Ordinances 11120113

Second Reading of TIF Ordinances 11122/13

Perfection of Board BiII(s)12/6/13

Third Reading and Final Passage of TIF Ordinances 1216/13

Mayor Signs Bills 12/16/13(at least 10 days after third reading and final passage ofTlF Ordinances)

TI F Ordinances Become Effective 1115/14

(30 days following signature ofTlF Ordinances by the Mayor)

Execution of Redevelopment Agreement 2/15/14

(expected within 90 days of effective date ofTIF Ordinances)

Commencement of Constl'uction 3/1/14

(expected within 180 days of effective date ofTIF Ordinances)

Completion of Construction 3/1115

(anticipated to occLlr within 48 months following Commencement of Construction)

706 Market TIF Application

Documents