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HomeMy WebLinkAboutPlanning Commission Packet 04-24-2018 SpecialCITY OF PLYMOUTH AGENDA COUNCIL/PLANNING COMISSION/HRA MEETING APRIL 24, 2018, 5:30 p.m. MEDICINE LAKE CONFERENCE ROOM 1. CALL TO ORDER 2. TOPICS A. Draft Housing Study B. Senior Building Cash Flow and Maintenance Schedule C. Tax Increment District update D. Set future Study Sessions 3. ADJOURN Council/Planning Commission/HRA Meeting 1 of 1 April 24, 2018 rp City of Plymouth Adding Quo[ity to Life SPECIAL COUNCIL/PLANNING COMMISSION/HRA To: Prepared by: MEETING Reviewed by: April 24, 2018 Item: 1. ACTION REQUESTED: Agenda 2A Number: Dave Callister, City Manager James Barnes, HRA Manager Steve Juetten, Community Development Director Review Plymouth Multi -Family Housing Study Review the Housing Market Study prepared by Maxfield Research and provide staff with policy direction relating to affordable/workforce and senior housing. 2. BACKGROUND: In April 2017, the Council and Housing and Redevelopment Authority Board (HRA) discussed the various types of multi -family housing including market rate, affordable/workforce and senior. During the discussion, it was recommended that a housing study be conducted to provide information that the Council and HRA can use to better understand different housing markets. Maxfield Research completed the draft study over the past six months. Staff from Maxfield Research will be at this meeting to present their findings and address any questions. Attached is the Executive Summary (the full document was distributed a couple of weeks ago and can also be found in Dropbox under Reports & Studies). 3. ATTACHMENTS: Housing Market Study Executive Summary Rental Housing Market Study Page 1 EXECUTIVE SUMMARY Purpose and Scope of Study Maxfield Research and Consulting LLC (i.e. "Maxfield Research") was engaged by the City of Plymouth HRA to conduct a Comprehensive Rental Housing Market Study for the City of Plym- outh. The Housing Market Study provides recommendations on the amount and types of rental housing that should be developed in order to meet the needs of current and future households who choose to reside in Plymouth. The scope of this study includes: an analysis of the demographic and economic characteristics of the City; a review of the characteristics of the existing housing stock, building permit trends, and residential land supply; an analysis of the market condition for a variety of rental and for - sale housing products; and an assessment of the need for housing by product type in the City. Recommendations on the number and types of housing products that should be considered in the City are also supplied. Demographic Analysis • As of the 2010 Census, the City of Plymouth had 70,576 people and 29,982 households. The City of Plymouth is forecast to grow by 8,424 people and 2,418 households between 2010 and 2020 and by another 5,000 people and 2,100 households between 2020 and 2030. • From 2017 to 2022, growth is expected in all ages except in those ages 18 to 24 and in 45 to 54 year olds. The 65 to 74 age cohorts are projected to have the greatest numeric growth increasing by 1,809 people, while the 75 to 84 age cohort is projected to have the greatest percentage growth in Plymouth increasing by 32% between 2017 and 2022. • The City of Plymouth had an estimated median household income of $96,274 in 2017. Non - senior household median incomes peak in the 45 to 54 age group at $124,490. The median income for seniors age 65 to 74 is $84,386 and for 75+ is $45,545. • Between 2000 and 2015, homeownership rates decreased from 76.5% to 71.4% in the City of Plymouth. The decline was a result of lender -mediated properties during the Great Re- cession and the rental housing market that is currently booming in Plymouth. • Married without children households accounted for the highest household type percentage in 2015 at 33.3%. However, living alone is the second largest household type accounting for about 26% of households in Plymouth. MAXFIELD RESEARCH AND CONSULTING Page 2 EXECUTIVE SUMMARY Employment Analysis Plymouth and Hennepin County had an unemployment rate of 3.1% and 3.4% respectively in June 2017, which is lower than the State of Minnesota (4.1%). According to Employer -Household Dynamics data from the U.S. Census Bureau there are roughly 50,551 workers in Plymouth in 2014, 9.9% live in Plymouth. Most other workers are commuting from Minneapolis (7.4%), Maple Grove (5.9%) and Brooklyn Park (4.3%). Plym- outh is considered a major importer of works as over 90% of the employees working in Plymouth are from other communities. Housing Characteristics • Per the City of Plymouth Building Department there were 7,225 units permitted from 2000 to May 2017. In 2009 (the peak of the recession), Plymouth observed the fewest building permits issued at 75, but has averaged building permits for 299 units per year since 2007. • Nearly one-half of Plymouth's renter -occupied housing were constructed in the 1970s and 1980s (47%), while 22% of Plymouth's renter -occupied housing stock was built since 2000. • Approximately 70% of Plymouth homeowners have a mortgage compared to 73% of Henne- pin County and 73% of the metro area. About 17% of homeowners with mortgages also have a second mortgage or home equity loan. • The median estimated home value in Plymouth was roughly $331,263 in 2017. The income required to afford a home at this price would be about $94,646 to $110,421 based on the standard of 3.0 to 3.5 times the median income (and assuming these households do not have a high level of debt). About 64% of non -senior households in Plymouth have incomes of $94,646 or more in 2017. The median contract rent in Plymouth was $1,057 in 2015. Based on a 30% allocation of in- come to housing, a household would need an income of about $42,280 to afford the me- dian contract rent in Plymouth. Rental Housing Market Analysis In total, Maxfield Research inventoried 6,972 general occupancy rental units in Plymouth spread across 44 multifamily developments. At the time of the survey, there were 115 va- cant units resulting in an overall vacancy rate of 1.6%. Typically, a healthy rental market maintains a vacancy rate of roughly 5%, which promotes competitive rates, ensures ade- quate consumer choice, and allows for unit turnover. MAXFIELD RESEARCH AND CONSULTING Page 3 EXECUTIVE SUMMARY • Market rate projects make-up 6,372 units and a total of 115 unit vacancies were found, re- sulting in a market rate rental project vacancy rate of 1.8%. • Affordable/subsidized projects make-up 600 units and posted no vacant units. Senior Housing Market Analysis • There are eight senior housing developments located in the Plymouth with a total of 914 units. There were 23 vacancies identified within the housing developments posting an over- all vacancy rate of 2.5%. Generally, healthy senior housing vacancy rates range from 5% to 7% depending on service level. Housing Demand Analysis • Based on our calculations, demand exists in the City of Plymouth for the following general occupancy product types between 2017 and 2030: o Market rate rental 972 units o Affordable rental 408 units o Subsidized rental 188 units • In addition, we find demand for multiple senior housing product types. By 2030, demand in the Plymouth Market Area for senior housing is forecast for the following: o Active adult ownership 308 units o Active adult rental 262 units o Active adult affordable 234 units o Active adult subsidized 227 units o Congregate 457 units o Assisted Living 234 units o Memory care 279 units Recommendations and Conclusions • Based on the finding of our analysis and demand calculations, the following chart provides a summary of the recommended development concepts by product type for the City of Plym- outh through 2030. Detailed findings are described in the Recommendations section of the report. MAXFIELD RESEARCH AND CONSULTING 3 Page 4 EXECUTIVE SUMMARY MAXFIELD RESEARCH AND CONSULTING Page 5 RECOMMENDED HOUSING DEVELOPMENT CITY OF PLYMOUTH 2017 to 2030 No. of No. of No. of Purchase Price/ Units Units Units Monthly Rent Range' 2017-2020 2021-2025 2026-2030 Total General Occupancy Rental Housing Market Rate Rental Housing Apartment -style $1,000/1613 - $2,800/3BR 280 -300 180 -200 350 -400 810 -900 Townhomes $2,300/2BR - $2,700/3BR 50 -60 40 -50 30 -40 120 -150 Total 330-360 220 -250 380-440 930-1,050 Affordable Rental Housing Apartment -style Moderate Income' 130-140 100 -120 130 -140 360 -400 Subsidized 30% of Income° 50 -60 50 -60 50 -60 150 -180 Total 180-200 150-180 180-200 510-580 Total Renter -Occupied 510-560 370-430 560-640 1,440 - 1,630 Senior Housing (i.e. Age Restricted) Senior Coop./Ownership Active Adult $50,000 - $200,000+ 60 -70 80 -90 90 -100 230 -260 Active Adult Market Rate Rentals $1,400/1BR - $2,700/2BR 70 -80 90 -100 80 -90 240 -270 Active Adult Affordable Rentals Moderate Income' 80 -90 60 -70 80 -90 220 -250 Active Adult Subsidized Rentals 30% of Income 50 -60 50 -60 80 -90 180 -210 Independent Living/Congregate $2,050/1BR - $4,000/2BR 120 -130 140 -150 150 -160 410 -440 Assisted Living $3,750/EFF - $5,300/2BR 50 -60 70 -80 100 -110 220 -250 Memory Care $2,900/EFF - $6,000/2BR 60 -70 70 -80 90 -100 220 -250 Total Senior Units 490 -560 560 -630 670-740 1,720 - 1,930 Total - All Units 1,000 - 1,120 930- 1,060 1,230 - 1,380 3,160 - 3,560 ' Pricing in 2017 dollars. Pricing can be adjusted to account for inflation. z Replacement need, infill, and redevelopment. 3 Affordablity subject to income guidelines per Minnesota Housing Finance Agency (MHFA). See Table HA -1 for Hennepin County Income limits. 4Subsized housing will be difficult to develop financially 5Alternative development concept is to combine active adult affordable and market rate active adult into mixed -income senior community Note - Recommended development does not coincide with total demand. Plymouth may not be able to accommodate all recommended housing types based on land availability and development constraints. Source: Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING Page 5 Comprehensive Rental Housing Market Study for the Plymouth Housing and Redevelopment Authority r Maxfield IVAResearch & Consultinc 7575 Golden Valley Road Suite 385 Golden Valley, MN 55427 612.338.0012 www.maxfieldresearch.com Page 6 Maxfield Research & Consulting April 4, 2018 Jim Barnes HRA Manager City of Plymouth 3400 Plymouth Blvd Plymouth, MN 55447 Dear Mr. Barnes: Attached is the Comprehensive Rental Housing Market Study for the Plymouth Housing and Redevelop- ment Authority conducted by Maxfield Research and Consulting, LLC. The study projects rental housing demand from 2017 through 2030, and provided recommendations on the amount and type of rental housing that could be built in Plymouth to satisfy demand from current and future residents over the next decade. The study identifies a potential demand for approximately 3,500 new housing units through 2030. Be- cause the population in Plymouth of the baby boomers will be aging over the next few decades; about 56% of the total demand will be for age -restricted housing types. At the same time, strong demand ex- ists for general -occupancy apartments with a need for over 1,500 units through 2030. Based on the survey of occupancies, Plymouth vacancies are extremely low posting an overall vacancy rate of only 1.7% for general -occupancy housing and 2.5% for senior housing. Detailed information regarding recommended housing concepts can be found in the Recommendations & Conclusions section at the end of the report. If you have any questions or need additional information, please contact us. We have enjoyed conducting this study for you. Sincerely, MAXFIELD RESEARCH AND CONSULTING, LLC 19C r Matt Mullins Max Perrault Vice President Associate Attachment (main) 612-338-0012 (fax) 612-904-7979 7575 Plymouth Road, Suite 385, Plymouth, MN 55427 www.maxfieldresearch.com Page 7 TABLE OF CONTENTS Page EXECUTIVE SUMMARY.......................................................................................................... 1 DEMOGRAPHIC ANALYSIS..................................................................................................... 5 Introduction...................................................................................................................... 5 Population and Household Growth Trends and Projections from 1990 to 2040 ............. 5 Persons Per Household (Household Size)......................................................................... 8 AgeDistribution Trends.................................................................................................... 9 Household Income by Age of Householder...................................................................... 12 Networth.......................................................................................................................... 16 Tenure by Household Income........................................................................................... 18 Tenure by Age of Householder......................................................................................... 21 HouseholdType................................................................................................................ 23 Tenure by Household Size................................................................................................. 25 Diversity............................................................................................................................. 26 Mobilityin the Past Year................................................................................................... 28 Demographic Comparison................................................................................................. 28 Summary of Demographic Trends.................................................................................... 30 EMPLOYMENT....................................................................................................................... 32 EmploymentTrends.......................................................................................................... 32 Employment Growth and Projections............................................................................... 32 ResidentLabor Force........................................................................................................ 33 Employment, Earnings, and Employment by Educational Attainment ............................ 35 CommutingPatterns......................................................................................................... 38 Inflow/Outflow.................................................................................................................. 40 MajorEmployers............................................................................................................... 42 EmploymentInterview...................................................................................................... 43 HOUSING CHARACTERISTICS................................................................................................. 44 Introduction...................................................................................................................... 44 Residential Construction Trends 2000 to Present............................................................ 44 American Community Survey............................................................................................ 47 Ageof Housing Stock......................................................................................................... 47 Housing Units by Structure and Occupancy or (Housing Stock by Structure Type) ......... 49 Owner Occupied Housing Units by Mortgage Status ....................................................... 49 Housing Units by Occupancy Status & Tenure.................................................................. 50 Renter -Occupied Units by Contract Rent.......................................................................... 55 Housing Characteristics Comparison................................................................................ 56 Page 8 HOUSING AFFORDABILITY..................................................................................................... 57 Introduction...................................................................................................................... 57 HousingCost Burden......................................................................................................... 60 HousingVouchers............................................................................................................. 62 Housing Costs as Percentage of Household Income......................................................... 64 RENTAL MARKET ANALYSIS.................................................................................................. 66 Introduction...................................................................................................................... 66 Overview of Rental Market Conditions............................................................................. 66 General Occupancy Rental Properties.............................................................................. 70 Natural Occurring Affordable Housing (i.e. Unsubsidized Affordable) ............................. 85 Licensed Rental Ordinance................................................................................................ 90 SENIOR HOUSING ANALYSIS................................................................................................. 92 SeniorHousing Defined..................................................................................................... 92 Senior Housing in Plymouth.............................................................................................. 93 Senior Housing Comparison.............................................................................................. 102 HOUSING DEMAND ANALYSIS.............................................................................................. 104 Introduction....................................................................................................................... 104 Demographic Profile and Housing Demand...................................................................... 104 Housing Demand Overview............................................................................................... 105 Estimated Demand for General Occupancy Rental Housing ............................................. 109 Estimated Demand for Independent Adult/Few Services Senior Housing ........................ 111 Estimated Demand for Subsidized/Affordable Independent Senior Housing ................... 113 Estimated Demand for Congregate Senior Housing.......................................................... 114 Demand Estimate for Assisted Living Housing.................................................................. 116 Estimated Demand for Memory Care Housing.................................................................. 119 RECOMMENDATIONS AND CONCLUSIONS.......................................................................... 121 Introduction/Overall Housing Recommendations............................................................ 121 Recommended Housing Product Types............................................................................ 123 CHALLENGES AND OPPORTUNITIES...................................................................................... 128 APPENDIX.............................................................................................................................. 137 Definitions......................................................................................................................... 138 Page 9 MAPS Page City of Plymouth 2016 Median Income by Census Tract ....................................................... 20 City of Plymouth Residential Parcels by Total Assessed Parcel Value ................................... 52 City of Plymouth Residential Parcels by Year Built................................................................ 53 City of Plymouth Residential Parcels Homesteaded.............................................................. 54 Plymouth GO Rental Housing Developments........................................................................ 83 Plymouth GO Multifamily Rental Housing Units by Census Tract ......................................... 91 Plymouth Senior Housing Developments.............................................................................. 101 Page 10 LIST OF TABLES Table Number and Title Page D1. Population and Household Growth Trends and Projections, Plymouth Analysis Area, 1990 to 2040........................................................................................................ 7 D2. Population Age Distribution, Plymouth Analysis Area, 2000 to 2022 .......................... 10 D3. Household Income by Age of Householder, City of Plymouth, 2017 & 2022 ............... 14 D4. Net worth by Age of Householder, Plymouth Analysis Area, 2017 .............................. 17 D5. Tenure by Household Income, Plymouth Analysis Area, 2015 ..................................... 18 D6. Tenure by Age of Householder, Plymouth Analysis Area, 2000 - 2015 ........................ 22 D7. Household Type, Plymouth Analysis Area, 2010 & 2015 .............................................. 24 D8. Tenure by Household Size, Plymouth Analysis Area, 2010 & 2015 .............................. 25 D9. Population Distribution by Race, Plymouth Analysis Area, 2010 and 2015 ................. 27 D10. Mobility Estimate in the Past Year by Age for Current Residence, Plymouth, 2015.... 28 D11. Demographic Comparison, Plymouth Analysis Area .................................................... 29 E1. Employment Growth Trends & Projections, Plymouth Analysis Area, 2000-2040 ...... 32 E2. Annual Average Resident Employment, Plymouth MN, 2000 to 2017 ........................ 34 E3. Covered Employment Trends, Plymouth MN, 2000, 2005, 2010, 2015, 2016 ............. 35 E4. Employment by Earnings, Plymouth Analysis Area, 2014 ............................................ 36 E5. Employment by Educational Attainment, Plymouth Analysis Area, 2014 ................... 36 E6. Business Summary - by NAICS Code, Plymouth MN, 2017 .......................................... 37 E7. Plymouth Commuting Patterns, 2014.......................................................................... 39 E8. Commuting Inflow/Outflow, Plymouth, 2014.............................................................. 40 E9. Major Employers, City of Plymouth, 2017.................................................................... 42 HC1. Residential Construction Building Permitted Units Issued, City of Plymouth, per Metropolitan Council, 2000 to 2016............................................................................. 45 HC2. Residential Construction Building Permits Issued, City of Plymouth, 2000 to 2016.... 46 HC3. Age of Housing Stock, Plymouth Analysis Area, 2015 .................................................. 48 HC4. Housing Units by Structure & Tenure, Plymouth Analysis Area, 2015 ......................... 49 HCS. Owner -Occupied Housing Units by Mortgage Status, Plymouth Analysis Area, 2015. 50 HC6. Housing Units by Occupancy Status & Tenure, Plymouth Analysis Area, 2015 ........... 51 HC7. Renter -Occupied Units by Contract Rent, Plymouth Analysis Area, 2015 ................... 55 HCB. Housing Characteristics Comparison, Plymouth Analysis Area . ................................... 56 HA1. MHFA/HUD Income and Rent Limits, Hennepin County, 2017 .................................... 58 HA2. Maximum Rent Based on Household Size and Area Median Income, HennepinCounty, 2017................................................................................................ 59 HA3. Housing Cost Burden, Plymouth, Twin City MSA, Hennepin County, Minnesota, 2015 61 HA4. Housing Affordability Expiration Date, City of Plymouth ............................................. 63 HAS. Plymouth Housing Affordability - Based on Household Income, City of Plymouth..... 65 R1. Average Rents/Vacancies Trends, Plymouth, 4t" Quarter 2007-2016 .......................... 67 Page 11 R2. Bedrooms by Gross Rent, Renter -Occupied Housing Units, Plymouth, 2015 .............. 69 R3. General Occupancy Rental Developments Year Built, Plymouth, August 2017........... 71 R4. Select General Occupancy Rental Developments Survey, Plymouth, August 2017..... 74 R5. Surveyed Unit Type Summary, Plymouth, September 2017 ........................................ 80 R6. Maximum Rent Based on Household Size and Area Median Income, Hennepin County, 2017.............................................................................................................................. 86 R7. Multifamily Market Rate Rental Developments, Naturally Occurring Rental Housing, City of Plymouth, August 2017................................................................................................. 87 R8. Multifamily Market Rate Rental Developments, Natural Occurring Summary, Plymouth, August2017.................................................................................................................. 90 S1. Senior Housing Projects, Plymouth, September 2017 .................................................. 96 S2. Surveyed Unit Type Summary, Senior Housing Developments, September 2017....... 98 S3. Senior Housing Comparison, Plymouth Analysis Area .................................................. 102 S4. Senior Housing Comparison, Plymouth Analysis Area .................................................. 103 HD1. Rental Housing Demand, City of Plymouth, 2017 to 2030 ........................................... 110 HD2. Market Rate Active Adult Housing Demand, City of Plymouth, 2017 and 2030.......... 112 HD3. Deep-Subsidy/Shallow Subsidy Independent Housing Demand, City of Plymouth, 2017 and2030....................................................................................................................... 114 HD4. Market Rate Congregate Rental Housing Demand, Plymouth, 2017 and 2030........... 115 HDS. Market Rate Assisted Living Demand, Plymouth, 2017 and 2030 ................................ 118 HD6. Market Rate Memory Care Demand, Plymouth, 2017 and 2030 ................................. 120 CRI. Summary of Housing Demand, City of Plymouth, September 2017 ............................ 121 CR2. Recommended Housing Development, Plymouth, 2017 to 2030 ................................ 123 Page 12 EXECUTIVE SUMMARY Purpose and Scope of Study Maxfield Research and Consulting LLC (i.e. "Maxfield Research") was engaged by the City of Plymouth HRA to conduct a Comprehensive Rental Housing Market Study for the City of Plym- outh. The Housing Market Study provides recommendations on the amount and types of rental housing that should be developed in order to meet the needs of current and future households who choose to reside in Plymouth. The scope of this study includes: an analysis of the demographic and economic characteristics of the City; a review of the characteristics of the existing housing stock, building permit trends, and residential land supply; an analysis of the market condition for a variety of rental and for - sale housing products; and an assessment of the need for housing by product type in the City. Recommendations on the number and types of housing products that should be considered in the City are also supplied. Demographic Analysis • As of the 2010 Census, the City of Plymouth had 70,576 people and 29,982 households. The City of Plymouth is forecast to grow by 8,424 people and 2,418 households between 2010 and 2020 and by another 5,000 people and 2,100 households between 2020 and 2030. • From 2017 to 2022, growth is expected in all ages except in those ages 18 to 24 and in 45 to 54 year olds. The 65 to 74 age cohorts are projected to have the greatest numeric growth increasing by 1,809 people, while the 75 to 84 age cohort is projected to have the greatest percentage growth in Plymouth increasing by 32% between 2017 and 2022. • The City of Plymouth had an estimated median household income of $96,274 in 2017. Non - senior household median incomes peak in the 45 to 54 age group at $124,490. The median income for seniors age 65 to 74 is $84,386 and for 75+ is $45,545. • Between 2000 and 2015, homeownership rates decreased from 76.5% to 71.4% in the City of Plymouth. The decline was a result of lender -mediated properties during the Great Re- cession and the rental housing market that is currently booming in Plymouth. • Married without children households accounted for the highest household type percentage in 2015 at 33.3%. However, living alone is the second largest household type accounting for about 26% of households in Plymouth. MAXFIELD RESEARCH AND CONSULTING Page 13 EXECUTIVE SUMMARY Employment Analysis Plymouth and Hennepin County had an unemployment rate of 3.1% and 3.4% respectively in June 2017, which is lower than the State of Minnesota (4.1%). According to Employer -Household Dynamics data from the U.S. Census Bureau there are roughly 50,551 workers in Plymouth in 2014, 9.9% live in Plymouth. Most other workers are commuting from Minneapolis (7.4%), Maple Grove (5.9%) and Brooklyn Park (4.3%). Plym- outh is considered a major importer of works as over 90% of the employees working in Plymouth are from other communities. Housing Characteristics • Per the City of Plymouth Building Department there were 7,225 units permitted from 2000 to May 2017. In 2009 (the peak of the recession), Plymouth observed the fewest building permits issued at 75, but has averaged building permits for 299 units per year since 2007. • Nearly one-half of Plymouth's renter -occupied housing were constructed in the 1970s and 1980s (47%), while 22% of Plymouth's renter -occupied housing stock was built since 2000. • Approximately 70% of Plymouth homeowners have a mortgage compared to 73% of Henne- pin County and 73% of the metro area. About 17% of homeowners with mortgages also have a second mortgage or home equity loan. • The median estimated home value in Plymouth was roughly $331,263 in 2017. The income required to afford a home at this price would be about $94,646 to $110,421 based on the standard of 3.0 to 3.5 times the median income (and assuming these households do not have a high level of debt). About 64% of non -senior households in Plymouth have incomes of $94,646 or more in 2017. The median contract rent in Plymouth was $1,057 in 2015. Based on a 30% allocation of in- come to housing, a household would need an income of about $42,280 to afford the me- dian contract rent in Plymouth. Rental Housing Market Analysis In total, Maxfield Research inventoried 6,972 general occupancy rental units in Plymouth spread across 44 multifamily developments. At the time of the survey, there were 115 va- cant units resulting in an overall vacancy rate of 1.6%. Typically, a healthy rental market maintains a vacancy rate of roughly 5%, which promotes competitive rates, ensures ade- quate consumer choice, and allows for unit turnover. MAXFIELD RESEARCH AND CONSULTING Page 14 EXECUTIVE SUMMARY • Market rate projects make-up 6,372 units and a total of 115 unit vacancies were found, re- sulting in a market rate rental project vacancy rate of 1.8%. • Affordable/subsidized projects make-up 600 units and posted no vacant units. Senior Housing Market Analysis • There are eight senior housing developments located in the Plymouth with a total of 914 units. There were 23 vacancies identified within the housing developments posting an over- all vacancy rate of 2.5%. Generally, healthy senior housing vacancy rates range from 5% to 7% depending on service level. Housing Demand Analysis • Based on our calculations, demand exists in the City of Plymouth for the following general occupancy product types between 2017 and 2030: o Market rate rental 972 units o Affordable rental 408 units o Subsidized rental 188 units • In addition, we find demand for multiple senior housing product types. By 2030, demand in the Plymouth Market Area for senior housing is forecast for the following: o Active adult ownership 308 units o Active adult rental 262 units o Active adult affordable 234 units o Active adult subsidized 227 units o Congregate 457 units o Assisted Living 234 units o Memory care 279 units Recommendations and Conclusions • Based on the finding of our analysis and demand calculations, the following chart provides a summary of the recommended development concepts by product type for the City of Plym- outh through 2030. Detailed findings are described in the Recommendations section of the report. MAXFIELD RESEARCH AND CONSULTING 3 Page 15 EXECUTIVE SUMMARY MAXFIELD RESEARCH AND CONSULTING Page 16 RECOMMENDED HOUSING DEVELOPMENT CITY OF PLYMOUTH 2017 to 2030 No. of No. of No. of Purchase Price/ Units Units Units Monthly Rent Range' 2017-2020 2021-2025 2026-2030 Total General Occupancy Rental Housing Market Rate Rental Housing Apartment -style $1,000/1613 - $2,800/3BR 280 -300 180 -200 350 -400 810 -900 Townhomes $2,300/2BR - $2,700/3BR 50 -60 40-50 30 -40 120 -150 Total 330-360 220-250 380-440 930-1,050 Affordable Rental Housing Apartment -style Moderate Income' 130-140 100 -120 130 -140 360 -400 Subsidized 30% of Income 50 -60 50 -60 50 -60 150 -180 Total 180-200 150-180 180-200 510-580 Total Renter -Occupied 510-560 370-430 560-640 1,440 - 1,630 Senior Housing (i.e. Age Restricted) Senior Coop./Ownership Active Adult $50,000 - $200,000+ 60 -70 80 -90 90 -100 230 -260 Active Adult Market Rate Rentals $1,400/1BR - $2,700/2BR 70 -80 90 -100 80 -90 240 -270 Active Adult Affordable Rentals Moderate Income 80 -90 60 -70 80 -90 220 -250 Active Adult Subsidized Rentals 30% of Income 50 -60 50 -60 80 -90 180 -210 Independent Living/Congregate $2,050/1BR - $4,000/2BR 120 -130 140 -150 150 -160 410 -440 Assisted Living $3,750/EFF - $5,300/2BR 50 -60 70 -80 100 -110 220 -250 Memory Care $2,900/EFF - $6,000/2613 60 -70 70 -80 90 -100 220 -250 Total Senior Units 490-560 560-630 670-740 1,720 - 1,930 Total - All Units 1,000 - 1,120 930- 1,060 1,230 - 1,380 3,160 - 3,560 ' Pricing in 2017 dollars. Pricing can be adjusted to account for inflation. z Replacement need, infill, and redevelopment. 3 Affordablity subject to income guidelines per Minnesota Housing Finance Agency (MHFA). See Table HA -1 for Hennepin County Income limits. 4Subsized housing will be difficult to develop financially 5Alternative development concept is to combine active adult affordable and market rate active adult into mixed -income senior community Note - Recommended development does not coincide with total demand. Plymouth may not be able to accommodate all recommended housing types based on land availability and development constraints. Source: Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING Page 16 DEMOGRAPHIC ANALYSIS Introduction This section of the report examines factors related to the current and future demand for owner- and renter -occupied housing units in Plymouth, Minnesota. It includes an analysis of population and household growth trends and projections, projected age distribution, house- hold income, net worth, household types, household tenure, diversity, and mobility trends. A review of these characteristics provides insight into the demand for various types of housing in the City of Plymouth. Population and Household Growth Trends and Projections from 1990 to 2040 Table D-1 presents population and household growth trends and projections from 1990 to 2040. The 1990 to 2010 data is from the U.S. Census. Estimate and projection data is calcu- lated from the Metropolitan Council; ESRI (a national demographics service provider); with ad- justments calculated by Maxfield Research and Consulting LLC. The adjustments are intended to reflect growth that will likely be realized after considering the impact of the current housing market, employment, and review of building permit trends. Population • The City of Plymouth's population grew by 4,682 people (+7.1%) between 2000 and 2010. During this same period Hennepin County grew by +3.2% and the 7 -County Metro Area grew by 7.9%. • In 2010, The City of Plymouth included roughly 6.1% of the total population in Hennepin County. MAXFIELD RESEARCH AND CONSULTING 5 Page 17 DEMOGRAPHIC ANALYSIS • Maxfield Research projects that Plymouth will have an increase in its population by 8,424 people (+11.9%) between 2010 and 2020. • We project that between 2020 and 2040, Plymouth will increase by approximately 6,100 people (+7.7%). Population Trends 90,000 80,000 70,000 60,000 - 50,000 - 40,000 30,000 - 20,000 - 10,000 0 2000 2010 2017 2020 2030 2040 MAXFIELD RESEARCH AND CONSULTING 6 Page 18 DEMOGRAPHIC ANALYSIS TABLE D-1 POPULATION AND HOUSEHOLD GROWTH TRENDS AND PROJECTIONS PLYMOUTH ANALYSIS AREA 1990 to 2040 Change 1990 2000 2010 2017 2020 2022 2030 2040 No. Pct. No. Pct. No. Pct. Plymouth 50,889 65,894 70,576 76,150 79,000 80,600 84,000 85,100 4,682 7.1 8,424 11.9 6,100 7.7 Hennepin County 1,032,431 1,116,200 1,152,425 1,200,862 1,221,620 1,243,336 1,330,200 1,405,060 36,225 3.2 69,195 6.0 183,440 15.0 7 -County Metro Area 2,288,729 2,642,056 2,849,567 2,979,370 3,035,000 3,084,885 3,284,427 3,652,060 207,511 7.9 185,433 6.5 617,060 20.3 Plymouth 19,616 24,820 29,982 31,200 32,400 33,175 34,500 34,700 5,162 20.8 2,418 8.1 2,300 7.1 Hennepin County 419,060 456,129 475,913 512,024 527,500 535,136 565,680 600,040 19,784 4.3 89,767 18.9 72,540 13.8 7 -County Metro Area 1,032,431 1,021,454 1,117,749 1,214,931 1,256,580 1,280,958 1,378,470 1,491,780 96,295 9.4 138,831 12.4 235,200 18.7 Note: Hennepin County and Metro Area totals sourced to Metropolitan Council (2020 to 2040). Sources: U.S. Census Bureau; ESRI; Metropolitan Council; Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 7 Page 19 DEMOGRAPHIC ANALYSIS Households • Household growth trends are typically a more accurate indicator of housing needs than population growth since a household is, by definition, an occupied housing unit. However, additional demand can come from changing demographics of the population base, which results in demand for different housing products. • Plymouth gained 5,162 households during the 2000s (an increase of +20.8%), increasing its household base to 29,982 households as of 2010. • Maxfield Research projects household growth in Plymouth to increase by 2,418 households (+8.1%) between 2010 and 2020. Overall, we project Plymouth to increase to 34,700 households by 2040. Household Trends 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - - - - 0 2000 2010 2017 2020 2030 2040 Persons Per Household (Household Size) Household size is calculated by dividing the number of persons in households by the number of households (or householders). Nationally, the average number of people per household has been declining for over a century; however, there have been sharp declines starting in the 1960s and 1970s. Persons per household in the U.S. were about 4.5 in 1916 and declined to 3.2 in the 1960s. Over the past 50 years, it dropped to 2.57 as of the 2000 Census. However, due to the economic recession this trend has been temporarily halted as renters and laid -off em- ployees "doubled -up," which increased the average U.S. household size to 2.59 as of the 2010 Census. MAXFIELD RESEARCH AND CONSULTING 8 Page 20 DEMOGRAPHIC ANALYSIS The declining household size has been caused by many factors, including: aging of the popula- tion, higher divorce rates, cohabitation, smaller family sizes, demographic trends in marriage, etc. Most of these changes have resulted from shifts in societal values, the economy, and im- provements in health care that have influenced how people organize their lives. In 2000, the average household size range increased between 2.65 (City of Plymouth) and 2.45 (Hennepin County). • By 2017, it is estimated that the average household sizes range decreased to 2.44 in Plym- outh and 2.35 in Hennepin County. The average household size in the seven -county metro area nearly mimics that of the City of Plymouth at 2.45 persons per household. Persons Per Household 2.70 2.60 2.50 x = 2.40 — — a M c 2.30 i- 0 2.20 — v a 2.10 - 2.00 1.90 1990 2000 2010 2017 ■ Plymouth ■ Hennepin Co. Metro Area Age Distribution Trends Age distribution affects demand for different types of housing since needs and desires change at different stages of the life cycle. Table D-2 shows the distribution of persons within nine age cohorts for Plymouth, Hennepin County, and the Metro Area in 2000 and 2010 with estimates for 2017 and projections for 2022. The 2000 and 2010 age distributions are from the U.S. Cen- sus Bureau and the 2017 and 2022 figures are estimates based on 2017 ESRI data. The following are key points from the table. • In Plymouth between 2000 and 2010, growth occurred in all age cohorts except those under the age of 18 and the 35 to 44 age cohort. The majority of the growth occurred in those be- tween the ages of 45 to 84. • The City of Plymouth's population of 18 to 34 year olds, which consists primarily of renters and first-time homebuyers, decreased by (-1.5%) between 2000 and 2010, but is expected to increase by 445 people (+1.4%) between 2017 and 2022. MAXFIELD RESEARCH AND CONSULTING 9 Page 21 DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING 10 Page 22 TABLE D-2 POPULATION AGE DISTRIBUTION PLYMOUTH ANALYSIS AREA 2000 to 2022 Census Estimate Projection Change 2000 2010 2017 2022 2000-2010 2017 2022 Age No. No. No. No. No. Pct. No. Pct. Plymouth Under 18 17,866 16,872 17,280 17,572 -994 -5.6 292 1.7 18 to 24 4,869 4,893 5,346 5,148 24 0.5 -198 -3.7 25 to 34 9,068 9,566 9,761 10,111 498 5.5 350 3.6 35 to 44 12,647 9,522 10,108 11,339 -3,125 -24.7 1,231 12.2 45 to 54 10,622 11,899 10,662 10,338 1,277 12.0 -324 -3.0 55 to 64 5,835 9,307 11,142 11,146 3,472 59.5 4 0.0 65 to 74 3,162 4,922 7,208 9,017 1,760 55.7 1,809 25.1 75 to 84 1,517 2,666 3,367 4,435 1,149 75.7 1,068 31.7 85 and over 308 929 1,277 1,495 621 201.6 217 17.0 Total 65,894 70,576 76,150 80,600 4,682 7.1 4,450 5.8 Hennepin County Under 18 267,502 261,345 271,024 273,071 -6,157 -2.3 2,047 0.8 18 to 24 108,767 113,551 107,328 106,308 4,784 4.4 -1,020 -1.0 25 to 34 183,860 187,523 184,257 188,290 3,663 2.0 4,033 2.2 35 to 44 191,872 154,304 158,247 168,823 -37,568 -19.6 10,576 6.7 45 to 54 156,068 171,130 155,489 148,085 15,062 9.7 -7,403 -4.8 55 to 64 85,773 133,758 154,813 154,929 47,985 55.9 117 0.1 65 to 74 59,737 66,516 97,436 118,501 6,779 11.3 21,066 21.6 75 to 84 44,942 42,476 46,489 58,608 -2,466 -5.5 12,119 26.1 85 and over 17,679 21,822 25,778 26,720 4,143 23.4 941 3.7 Total 1,116,200 1,152,425 1,200,862 1,243,336 36,225 3.2 42,474 3.5 Metro Area Under 18 697,534 700,960 715,248 722,852 3,426 0.5 7,604 1.1 18 to 24 244,226 263,462 248,229 239,719 19,236 7.9 -8,510 -3.4 25 to 34 411,155 420,311 430,515 441,179 9,156 2.2 10,663 2.5 35 to 44 469,324 391,324 394,459 427,843 -78,000 -16.6 33,385 8.5 45 to 54 363,592 440,753 401,611 375,721 77,161 21.2 -25,890 -6.4 55 to 64 200,980 326,007 386,615 391,102 125,027 62.2 4,487 1.2 65 to 74 130,615 163,425 239,535 291,236 32,810 25.1 51,701 21.6 75 to 84 90,292 97,442 108,833 138,681 7,150 7.9 29,848 27.4 85 and over 34,338 45,883 54,326 56,553 11,545 33.6 2,227 4.1 Total 2,642,056 2,849,567 2,979,370 3,084,885 207,511 7.9 105,515 3.5 Sources: U.S. Census Bureau; ESRI; Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 10 Page 22 DEMOGRAPHIC ANALYSIS • The senior age cohorts are projected to have the greatest percentage growth. The 75 to 84 age cohort is forecast to increasing by 1,068 people (+31.7%) in Plymouth between 2017 and 2022. The growth in the senior age cohorts can be primarily attributed to the baby boom generation aging into their senior years. • The social changes that occurred with the aging of the baby boom generation, such as higher divorce rates, higher levels of education, and lower birth rates has led to a greater variety of lifestyles than existed in the past — not only among baby boomers, but also among their parents and children. The increased variety of lifestyles has also fueled de- mand for alternative housing products to single-family homes. Seniors, in particular, and middle-aged persons tend to do more traveling and participate in more activities than previ- ous generations, and they increasingly prefer maintenance -free housing that enables them to spend more time on activities outside the home. MAXFIELD RESEARCH AND CONSULTING 11 Page 23 Population Age Distribution City of Plymouth 2000, 2010, & 2022 20,000 ■ 2000 18,000 ■ 2010 16,000 - ■ 2022 14,000 o 12,000 L w 10,000 o n' m .1 Z 8,000 � o r, o 6,000 — — — 4,000 — � — — — — 2,000 _ —'Ili `^ 00 01 0 W 0 Under 18 18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 to 74 75 to 84 85 and over Age Group • The senior age cohorts are projected to have the greatest percentage growth. The 75 to 84 age cohort is forecast to increasing by 1,068 people (+31.7%) in Plymouth between 2017 and 2022. The growth in the senior age cohorts can be primarily attributed to the baby boom generation aging into their senior years. • The social changes that occurred with the aging of the baby boom generation, such as higher divorce rates, higher levels of education, and lower birth rates has led to a greater variety of lifestyles than existed in the past — not only among baby boomers, but also among their parents and children. The increased variety of lifestyles has also fueled de- mand for alternative housing products to single-family homes. Seniors, in particular, and middle-aged persons tend to do more traveling and participate in more activities than previ- ous generations, and they increasingly prefer maintenance -free housing that enables them to spend more time on activities outside the home. MAXFIELD RESEARCH AND CONSULTING 11 Page 23 DEMOGRAPHIC ANALYSIS Household Income by Age of Householder The estimated distribution of household incomes in Plymouth for 2017 and 2022 are shown in Table D-3. The data was estimated by Maxfield Research based on income trends provided by ESRL The data helps ascertain the demand for different housing products based on the size of the market at specific cost levels. The Department of Housing and Urban Development defines affordable housing costs as 30% of a household's adjusted gross income. For example, a household in Plymouth with the median income of $96,274 per year would be able to afford a monthly housing cost of about $2,407. Maxfield Research uses a figure of 25% to 30% for younger households and 40% or more for seniors, since seniors generally have lower living expenses and can often sell their homes and use the proceeds toward rent payments. A generally accepted standard for affordable owner -occupied housing is that a typical house- hold can afford to pay 3.0 to 3.5 times their annual income on a single-family home. Thus, a $96,274 income would translate to an affordable single-family home of $288,822 to $336959. The higher end of this range assumes that the person has adequate funds for down payment and closing costs, but does not include savings or equity in an existing home which would allow them to purchase a higher priced home. • Plymouth has an estimated median household income of $96,274 in 2017 and is expected to increase over the next five years to $104,687 in 2022 (+8.7%). MAXFIELD RESEARCH AND CONSULTING 12 Page 24 DEMOGRAPHIC ANALYSIS ■ 2017 7,000 6,000 1,000 A Growth and Income Trends by Age of Householder City of Plymouth: 2017 and 2022 ■ 2022 ♦ 2017 Median Income $124,490 $1 73 ♦ 64 r A $84,386 Under 25 25-34 35-44 45-54 55-64 65-74 75+ Age of Householder Median Household Income, 2017 $140,000 $120,000 $100,000 $80,000 — $60,000 — $40,000 — $20,000 - — $0 Under25 25-34 35-44 45-54 55-64 65-74 75+ ■ Plymouth ■ Hennepin Co. Metro Area $140,000 5,000 $120,000 0 v 4,000 0 E 0 3,000 $49,553 $80,000 o c m z 2,000 1,000 A Growth and Income Trends by Age of Householder City of Plymouth: 2017 and 2022 ■ 2022 ♦ 2017 Median Income $124,490 $1 73 ♦ 64 r A $84,386 Under 25 25-34 35-44 45-54 55-64 65-74 75+ Age of Householder Median Household Income, 2017 $140,000 $120,000 $100,000 $80,000 — $60,000 — $40,000 — $20,000 - — $0 Under25 25-34 35-44 45-54 55-64 65-74 75+ ■ Plymouth ■ Hennepin Co. Metro Area $140,000 $120,000 $100,000 E 0 $80,000 c m $60,000 $40,000 n N $20,000 $0 MAXFIELD RESEARCH AND CONSULTING 13 Page 25 DEMOGRAPHIC ANALYSIS Non -Senior Households In 2017, 3.1% of non -senior (under age 65) households in Plymouth had incomes under $15,000 (736 households). All of these households would be eligible for deep -subsidy rental housing. Another 3.8% of Plymouth's non -senior households had incomes between $15,000 and $24,999 (894 households). Many of these households would qualify for deep - subsidy housing, but many could also afford shallow -subsidy or older market rate rentals. If MAXFIELD RESEARCH AND CONSULTING 14 Page 26 TABLE D-3 HOUSEHOLD INCOME BY AGE OF HOUSEHOLDER CITY OF PLYMOUTH (Number of Households) 2017 and 2022 Age of Householder Total Under 25 25-34 35-44 45-54 55-64 65-74 75+ 2017 Less than $15,000 1,244 85 166 116 124 244 191 316 $15,000 to $24,999 1,659 122 229 179 144 219 319 446 $25,000 to $34,999 1,674 109 308 236 188 240 234 358 $35,000 to $49,999 2,909 161 546 425 370 405 417 587 $50,000 to $74,999 4,536 200 824 692 681 727 740 671 $75,000 to $99,999 4,061 123 813 783 667 802 650 222 $100,000 to $149,999 6,206 81 967 1,206 1,384 1,445 849 273 $150,000 to $199,999 3,775 42 482 888 1,018 853 396 96 $200,000+ 5,135 24 377 1,060 1,420 1,493 588 174 Total 31,200 948 4,713 5,585 5,997 6,429 4,384 3,144 Median Income $96,274 $49,553 $81,931 $110,773 $124,490 $114,964 $84,386 $45,545 2022 Less than $15,000 1,293 81 169 127 98 217 220 381 $15,000 to $24,999 1,626 120 205 152 113 176 337 522 $25,000 to $34,999 1,574 103 274 216 140 191 246 405 $35,000 to $49,999 2,718 157 474 373 291 328 433 662 $50,000 to $74,999 4,196 191 724 630 515 591 765 779 $75,000 to $99,999 4,177 144 818 812 597 742 777 287 $100,000 to $149,999 7,142 101 1,098 1,446 1,417 1,511 1,144 425 $150,000 to $199,999 4,408 51 571 1,081 1,054 925 570 158 $200,000+ 6,041 29 466 1,304 1,484 1,607 873 277 Total 33,175 977 4,799 6,141 5,710 6,286 5,364 3,896 Median Income $104,687 $52,440 $90,152 $120,824 $134,719 $124,353 $96,123 $49,326 Change - 2017 to 2022 Less than $15,000 49 -4 3 11 -26 -28 28 65 $15,000 to $24,999 -33 -2 -24 -27 -31 -43 17 76 $25,000 to $34,999 -100 -6 -34 -21 -49 -49 12 47 $35,000 to $49,999 -192 -4 -72 -51 -78 -77 16 75 $50,000 to $74,999 -340 -9 -100 -62 -166 -136 25 108 $75,000 to $99,999 116 20 4 29 -70 -61 127 65 $100,000 to $149,999 936 20 130 240 33 65 295 152 $150,000 to $199,999 633 9 89 192 36 72 174 62 $200,000+ 906 5 90 245 64 114 285 103 Total 1,975 29 86 556 -286 -143 980 753 Median Income $8,413 $2,887 $8,221 $10,051 $10,229 $9,389 $11,737 $3,781 Sources: ESRI; Maxfield Research and Consulting LLC Non -Senior Households In 2017, 3.1% of non -senior (under age 65) households in Plymouth had incomes under $15,000 (736 households). All of these households would be eligible for deep -subsidy rental housing. Another 3.8% of Plymouth's non -senior households had incomes between $15,000 and $24,999 (894 households). Many of these households would qualify for deep - subsidy housing, but many could also afford shallow -subsidy or older market rate rentals. If MAXFIELD RESEARCH AND CONSULTING 14 Page 26 DEMOGRAPHIC ANALYSIS housing costs absorb 30% of income, households with incomes of $15,000 to $24,999 could afford to pay $375 to $625 per month. In most geographic areas, household median incomes peak in the 45 to 54 age group and that group is usually considered to be in their peak earning years. In 2017, the median household income in Plymouth was highest in the 45 to 54 age group at $124,490. The 35 to 44 age group has a median income of $110,773 in 2017. By 2022, the median income for the 35 to 44 and the 45 to 54 age groups are projected to increase to $120,824 (9.1%) and $134,719 (8.2%) respectively. The 55 to 64 age group is projected to increase from $114,964 to 124,353 (+8.2%) by 2022. • The median estimated home value in Plymouth was roughly $331,263 2017. The income required to afford a home at this price would be about $94,646 to $110,421 based on the standard of 3.0 to 3.5 times the median income (and assuming these households do not have a high level of debt). About 64% of non -senior households in Plymouth have incomes of $94,646 or more in 2017. • Incomes are expected to increase by 8.7% between 2017 and 2022 in Plymouth. This equates to an increase of 1.7% annually. Senior Households • The oldest householders have lower incomes in 2017. In Plymouth, 4.4% of households ages 65 to 74 had incomes below $15,000, compared to 10.1% of households ages 75 and over. Many of these low-income older senior households rely solely on social security bene- fits. Typically, younger seniors have higher incomes due to the fact they are still able to work or are married couples with two pensions or higher social security benefits. The 2017 median income for Plymouth householders age 65 to 74 and 75+ are $84,386 and $45,545, respectively. Generally, senior households with incomes greater than $25,000 will be able to afford mar- ket rate senior housing in Plymouth. Based on a 40% allocation of income for housing, this translates to monthly rents of at least $833. About 6,255 senior households in Plymouth (83% of senior households) have incomes above $25,000 in 2017. • The median income for seniors age 65+ in Plymouth is $64,965 in 2017. It is projected to increase by $7,760 (11.9%) to $72,724 by 2022. MAXFIELD RESEARCH AND CONSULTING 15 Page 27 DEMOGRAPHIC ANALYSIS Net Worth Table D-4 shows household net worth in the Plymouth in 2017. Simply stated, net worth is the difference between assets and liabilities, or the total value of assets after the debt is sub- tracted. The data was compiled and estimated by ESRI based on the Survey of Consumer Fi- nances and Federal Reserve Board data. According to data released by the National Association of Realtors, the average American homeowner has a net worth about 31 to 46 times greater than that of a renter and that in 2016 the average American homeowner net worth is estimated at 44 times greater than that of a renter. The Federal Reserve survey is conducted every three years and this research was based on the 2016 Federal Reserve survey that showed the median net worth of a homeowner was $231,400, whereas the median net worth of a renter was $5,200. • Plymouth had a median net worth of $300,121. Median net worth is generally a more accu- rate depiction of wealth than the average figure. A few households with very large net worth can significantly skew the average. Similar to household income, net worth increases as households age and decreases after they pass their peak earning years and move into retirement. Median and average net worth usually peak in the 65 to 74 age cohort. The median net worth in the Plymouth for age cohorts 45+ was $250,001 in 2017. Senior households usually have higher net worth due to their saving investments, and other retirement funds. • Households often delay purchasing homes and instead choose to rent until they acquire suf- ficient assets to cover the costs of a down payment and closing costs associated with home ownership. Lending has recently become slightly easier for obtaining mortgages making mortgages with little or no down payments easier to obtain in today's mortgage lending en- vironment than it has been the past year. MAXFIELD RESEARCH AND CONSULTING 16 Page 28 DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING 17 Page 29 TABLE D-4 NET WORTH BY AGE OF HOUSEHOLDER PLYMOUTH ANALYSIS AREA 2017 Age of Householder Total Under 25 25-34 35-44 45-54 55-64 65-74 75+ Less than $15,000 4,467 569 1,639 845 522 457 187 248 $15,000 to $34,999 1,659 174 647 384 207 137 35 75 $35,000 to $49,999 921 65 274 256 126 111 54 35 $50,000 to $99,999 2,529 48 544 763 414 303 225 232 $100,000 to $149,999 1,887 21 312 430 333 285 296 210 $150,000 to $249,999 2,774 39 417 491 519 519 344 445 $250,000 or more 16,917 29 875 2,408 3,866 4,608 3,238 1,893 Subtotal 31,154 945 4,708 5,577 5,987 6,420 4,379 3,138 Median Net Worth $300,121 $12,456 $38,090 $166,936 $250,001 $250,001 $250,001 $250,001 Average Net Worth $1,131,424 $47,550 $200,338 $955,295 $1,206,892 $1,638,739 $1,853,387 $977,683 Less than $15,000 132,117 19,322 Hennepin 43,495 County 24,521 17,113 14,620 6,359 6,687 $15,000 to $34,999 34,398 2,952 11,846 7,426 5,022 3,770 1,460 1,922 $35,000 to $49,999 17,939 826 5,123 4,732 2,584 2,329 1,587 758 $50,000 to $99,999 47,217 984 10,944 12,291 7,946 6,303 4,382 4,367 $100,000 to $149,999 31,797 380 5,725 6,680 5,433 5,159 4,638 3,782 $150,000 to $249,999 47,720 506 6,567 8,915 8,923 9,301 6,165 7,343 $250,000 or more 200,417 466 10,094 26,211 45,420 54,365 38,338 25,523 Subtotal 511,605 25,436 93,794 90,776 92,441 95,847 62,929 50,382 Median Net Worth $135,412 $9,873 $18,709 $80,165 $237,865 $250,001 $250,001 $250,001 Average Net Worth $762,132 $32,697 $123,008 $574,227 $863,354 $1,221,915 $1,415,366 $782,457 Less than $15,000 258,474 33,663 82,288 48,562 35,172 30,573 13,515 14,701 $15,000 to $34,999 73,876 6,326 24,863 16,292 10,749 8,282 3,000 4,364 $35,000 to $49,999 40,005 1,932 10,851 10,746 5,829 5,349 3,540 1,758 $50,000 to $99,999 114,601 2,829 27,811 29,767 19,004 14,762 10,392 10,036 $100,000 to $149,999 80,910 1,038 16,128 17,249 13,746 12,508 11,717 8,524 $150,000 to $249,999 124,765 1,269 18,267 25,466 24,231 23,335 15,213 16,984 $250,000 or more 505,472 1,026 25,484 69,833 122,953 137,329 93,804 55,043 Total 1,198,103 48,083 205,692 217,915 231,684 232,138 151,181 111,410 Median Net Worth $168,704 $10,713 $29,794 $108,223 $250,001 $250,001 $250,001 $244,387 Average Net Worth $773,328 $37,913 $138,556 $577,985 $872,106 $1,209,626 $1,376,580 $711,663 Sources: ESRI; Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 17 Page 29 DEMOGRAPHIC ANALYSIS Median Net Worth by Age of Householder, 2017 $300000 , $250,000 s $200,000 L � $150,000 v Z $100,000 $50,000 $0 Under25 25-34 35-44 45-54 55-64 65-74 75+ Age Tenure by Household Income Table D-5 shows household tenure by income for Plymouth in 2015. Data is an estimate from the American Community Survey. Household tenure information is important to assess the propensity for owner -occupied or renter -occupied housing options based on household afford- ability. As stated earlier, the Department of Housing and Urban Development determines af- fordable housing as not exceeding 30% of the household's income. The higher the income, the lower percentage a household typically allocates to housing. Many lower income households, as well as many young and senior households spend more than 30% of their income, while mid- dle-aged households in their prime earning years typically allocate 20% to 25% of their income. • Typically, as income increases, so does the rate of homeownership. This can be seen in the Plymouth, where the homeownership rate increases from 33.3% of households with in- comes below $15,000 to 89.6% of households with incomes above $100,000. MAXFIELD RESEARCH AND CONSULTING 18 Page 30 TABLE D-5 TENURE BY HOUSEHOLD INCOME PLYMOUTH ANALYSIS AREA 2015 City of Plymouth Hennepin County Metro Area Own Rent Own Rent Own Rent No. Pct. No. Pct. No. Pct. No. Pct. No. Pct. No. Pct. Less than $15,000 499 33.3 1,000 66.7 11,286 23.0 37,812 77.0 26,809 41.5 37,812 58.5 $15,000 to $24,999 1054 55.4 847 44.6 14,948 36.4 26,089 63.6 35,265 57.5 26,089 42.5 $25,000 to $34,999 1,136 56.6 871 43.4 17,827 44.0 22,701 56.0 44,018 66.0 22,701 34.0 $35,000 to $49,999 1,761 55.9 1,388 44.1 30,782 52.4 27,952 47.6 78,573 73.8 27,952 26.2 $50,000 to $74,999 2,702 56.5 2,081 43.5 51,925 62.3 31,379 37.7 139,502 81.6 31,379 18.4 $75,000 to $99,999 2,780 71.4 1,116 28.6 46,933 73.6 16,859 26.4 128,280 88.4 16,859 11.6 $100,000+ 11,680 89.6 1,352 10.4 133,694 87.0 20,009 13.0 332,965 94.3 20,009 5.7 Total 21,612 71.4 8,655 28.6 1 307,395 62.7 182,801 37.3 1 785,412 81.1 182,801 18.9 Source: U.S. Census Bureau; American Community Survey; Maxfield Research & Copnsulting, LLC • Typically, as income increases, so does the rate of homeownership. This can be seen in the Plymouth, where the homeownership rate increases from 33.3% of households with in- comes below $15,000 to 89.6% of households with incomes above $100,000. MAXFIELD RESEARCH AND CONSULTING 18 Page 30 DEMOGRAPHIC ANALYSIS • A portion of renter households that are referred to as lifestyle renters, or those who are fi- nancially -able to own but choose to rent, have household incomes of $50,000 or more (about 53% of the Plymouth's renters in 2015). Households with incomes below $15,000 are typically a market for deep subsidy rental housing (about 11% of the Plymouth's renters in 2015). Median Household Income by Census Tract The map on the following page shows median household income by census tract in Plymouth in 2016. Geographic Information System (GIS) data was provided through ESRI, a national de- mographics and GIS service provider. Below are key points from the map. Census tracts with the highest median income tend to be located on the west and north sides of Plymouth. Median incomes in Plymouth ranged from $146,581 on the high end to $55,838 on the low end. Within the central section of the city and in two census tracts bordering US -Hwy 169, on the eastside of Plymouth, are the areas with the lowest median incomes. These three tracts all had median incomes below $65,000 in 2016. MAXFIELD RESEARCH AND CONSULTING 19 Page 31 DEMOGRAPHIC ANALYSIS 'F' Ilackdrr cEe F'cl --` n Meana Go x s Country a Club H.rrn L.akn I Pik Vh S '5%dl0 gbirla 80 3 E z 8 $100.000.00 c r,. Spring Hill G alt Club �1 S,.r"Ja rti L u1 L.,k, 7Voo ITrW, rtla - fF Ceun[ry - Club - NFood hl 17' `gi IIAa][flelc IM Research & Gonsultin 2016 Median Income by Census Tract L' ^I $52.054.00 $70,491.00 a I a F'ak i" $84,641.00 •� n [oil i Lal. R.g.ounl Mrd AtaN r Pad l - - -62nd Ava N r i ¢a p m P. Z c Z v v kax z � - r - m u r I 49th Avo TJ Z J 0 $63,835.00 New Hope � a 4G 42nu•Avedr C+.+h�amane Y G mvlery $55,838.00 it rer tm�m I pan. m Ave N 2 d 2-1I}AVe 14 a $75,499.00 $90,117.00 - M&lialtc Lake Rd J z ,lK el TF k � I �Geo9ase, IGIJ, _ Aapmylndia, MAXFIELD RESEARCH AND CONSULTING 20 Page 32 - z a m a o a n 5 � F 2 C �� $86,816.00 2015 Median Frcame by Census Tract OC,1,an O 5]0.001-5100 A00 - Siaa.aoi-5130A00 L•Cei ilii Ca -�S 13PA41 F wL f � t2 V, TV.-1rtaRlBf]' —rit P Cap., Cb, USCS:,FM. t. Qdnanc SuNey,EsriJapen;7AET, Esri Chin6;fltrrg l{_,;. >Wis>:: ::: Bp contributors, and the 4315 Lisa mmun6 I'• MAXFIELD RESEARCH AND CONSULTING 20 Page 32 DEMOGRAPHIC ANALYSIS Tenure by Age of Householder Table D-6 shows the number of owner and renter households in Plymouth by age group in 2000, 2010 and 2015. This data is useful in determining demand for certain types of housing since housing preferences change throughout an individual's life cycle. The following are key findings from Table D-6. • In 2000, 76.5% of all households in the Plymouth owned their housing. By 2010, that per- centage declined to 72.4% and in 2015 it is estimated that 71.4% of all Plymouth house- holds owned their housing. • The housing market downturn contributed to the decrease in the homeownership rate during the late 2000s as it became more difficult for households to secure mortgage loans, households delayed purchasing homes due to the uncertainty of the housing market, and foreclosures forced households out of their homes. Currently it is estimated that there is a growing trend of lifestyle renters seeking rental properties in the Plymouth area and Metro Area as can be seen by the growing percentage of renters. MAXFIELD RESEARCH AND CONSULTING 21 Page 33 Tenure by Age of Householder City of Plymouth, 2015 6,000 87% 89% 100% 82% 81% 90% 5,000 67% A ° 64/0 80% 4,000 70% 0 60% 4; 3,000% 50% 0 40% _ = 2,000 30% 1,000 ° 20% 1 ■ ■, ° 0 — 0% 15-24 25-34 35-44 45-54 55-64 65-74 75-84 85+ ■ Renters ■ Owners Homeownership Rate MAXFIELD RESEARCH AND CONSULTING 21 Page 33 DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING 22 Page 34 TABLE D-6 TENURE BY AGE OF HOUSEHOLDER PLYMOUTH ANALYSIS AREA 2000-2015 City of Plymouth Hennepin County Metro Area Age No. sir Pct. r No. i Pct. r No. Pct. t28632 Pct. No. Pct. No. Pct. No. Pct. No. Pct. No. Pct. 15-24 Own 148 13.7 95 10.1 44 7.6 11.8 2,790 10.9 1,458 6.S 9,790 17.3 7,947 16.0 4,963 11.6 Rent 934 86.3 843 89.9 536 92.4 88.2 22,734 89.1 19,949 93.2 46,699 82.7 41,789 84.0 37,764 88.4 Total 1,082 100.0 938 100.0 580 100.0 100.0 25,524 100.0 21,407 100.0 56,489 100.0 49,736 100.0 42,727 100.0 25-34 Own 2,269 52.0 2,003 42.5 1,839 35.9 44,563 46.9 39,850 42.3 38,814 39.0 114,071 55.5 102,236 50.6 98,991 46.7 Rent 2,092 48.0 2,714 57.5 3,283 64.1 50,435 53.1 54,312 57.7 60,755 61.0 91,342 44.5 99,716 49.4 112,759 53.3 Total 4,361 100.0 4,717 100.0 5,122 100.0 94,998 100.0 94,162 100.0 99,569 100.0 205,413 100.0 201,952 100.0 211,750 100.0 35-44 Own 5,538 81.6 3,769 71.6 3,562 67.2 79,041 72.5 57,684 66.6 54,874 62.6 203,729 77.7 154,678 72.3 143,886 68.1 Rent 1,249 18.4 1,495 28.4 1,735 32.8 29,926 27.5 28,946 33.4 32,721 37.4 58,438 22.3 59,303 27.7 67,401 31.9 Total 6,787 100.0 5,264 100.0 5,297 100.0 108,967 100.0 86,630 100.0 87,595 100.0 262,167 100.0 213,981 100.0 211,287 100.0 45-54 Own 5,267 87.8 5,557 82.4 5,220 81.6 74,037 79.7 75,651 75.4 70,987 73.9 177,090 83.1 202,404 79.8 192,198 78.4 Rent 733 12.2 1,190 17.6 1,179 18.4 18,829 20.3 24,688 24.6 25,107 26.1 36,077 16.9 51,379 20.2 52,855 21.6 Total 6,000 100.0 6,747 100.0 6,399 100.0 92,866 100.0 100,339 100.0 96,094 100.0 213,167 100.0 253,783 100.0 245,053 100.0 55-64 Own 3,136 90.5 4,742 86.6 5,205 87.3 42,671 81.9 65,466 79.5 69,927 7102,583 84.9 162,595 092.6 174,794 80.9 Rent 328 9.5 733 13.4 760 12.7 9,412 18.1 16,891 20.5 20,226 22.4 18,205 15.1 34,355 17.4 41,383 19.1 Total 3,464 100.0 5,475 100.0 5,965 100.0 52,083 100.0 82,357 100.0 90,153 100.0 120,788 100.0 196,950 100.0 216,177 100.0 65-74 Own 1,693 87.0 2,706 89.0 3,428 89.0 30,672 81.2 34,028 80.0 40,246 79.5 68,030 82.4 85,347 82.6 100,740 82.5 Rent 254 13.0 336 11.0 423 11.0 7,090 18.8 8,502 20.0 10,382 20.5 14,491 17.6 17,998 17.4 21,409 17.5 Total 1,947 100.0 3,042 100.0 3,851 100.0 37,762 100.0 42,530 100.0 50,628 100.0 82,521 100.0 103,345 100.0 122,149 100.0 75-84 Own 812 81.8 1 1,465 1 80.5 1,666 81.4 22,083 72.8 21,975 75.6 21,813 75.2 43,576 71.8 50,083 75.6 50,917 75.7 Rent 181 18.2 354 19.5 381 18.6 8,242 27.2 7,108 24.4 7,209 24.8 17,109 28.2 16,185 24.4 16,330 24.3 Total 993 100.0 1,819 100.0 100.0 30,325 100.0 29,083 100.0 29,022 100.0 60,685 100.0 66,268 100.0 67,247 100.0 85+ Own 131 70.4 419 63.4 648 5,346 50.9 8,677 56.8 9,276 59.0 10,097 49.9 17,185 54.2 18,923 56.0 Rent 55 29.6 242 36.6 358 �OO 5,150 49.1 6,611 43.2 6,452 41.0 10,127 50.1 14,549 45.8 14,841 44.0 Total 186 100.0 661 100.0 1,006 10,496 100.0 15,288 100.0 15,728 100.0 20,224 100.0 31,734 100.0 33,764 100.0 TOTAL Own 18,994 76.5 20,756 72.4 21,612 71.4 301,793 66.2 306,121 64.3 307,395 62.7 728,966 71.4 782,475 70.0 785,412 68.3 Rent 5,826 23.5 7,907 27.6 8,655 28.6 154,336 33.8 169,792 35.7 182,801 37.3 292,488 28.6 335,274 30.0 364,742 31.7 Total 24,820 100.0 28,663 100.0 30,267 100.0 456,129 100.0 475,913 100.0 490,196 100.0 1,021,454 100.0 1,117,749 100.0 1,150,154 100.0 ` 2015 data is from the American Community Survey Sources: U.S. Census Bureau; Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 22 Page 34 DEMOGRAPHIC ANALYSIS As households progress through their life cycle, housing needs change. The proportion of renter households decreases significantly as households' age out of their young -adult years. However, by the time households reach their senior years, rental housing often be- comes a more viable option than homeownership, reducing the responsibility of mainte- nance and a financial commitment. • In 2015, ACS estimated that 92.4% of the Plymouth's households between the ages of 15 and 24 rented their housing, compared to 64.1% of households between the ages of 25 and 34. Householders between 35 and 84 were overwhelmingly homeowners, with no more than 32.8% of the householders in each 10 -year age cohort renting their housing. • The higher homeownership rates in Plymouth (71.4%) compared to Hennepin County (62.7%), and the Metro Area (68.3%) reflects the suburban character of the City and was originally developed as a single-family housing community. Household Type Table D-7 shows a breakdown of the type of households present in Plymouth in 2010 and 2015. The data is useful in assessing housing demand since the household composition often dictates the type of housing needed and preferred. Between 2010 and 2015, Plymouth experienced an increase in all household types besides Other Family households, which decreased by -2.8%. Married families without children grew the most numerically, adding +1,101 households (+12.3%), The increase in households married without children can be attributed to couples waiting longer to have children, and the baby boomers aging into empty nester years. • The differences between Plymouth compared to Hennepin County and the Twin Cities Metro Area reflect the demographic changes that were seen in Table D-2 Population Age Distribution. The aging of baby boomers is increasing the Married without child category and decreasing the Married with Child category. The Other category (Single -parent families, unmarried couples with children) is also increasing at a higher rate in Plymouth, but is catching up to a similar distribution of Other households as compared to Hennepin County and the Twin Cities Metro Area. Roommates are accounting for smaller percentages in all areas which shows that economic conditions are changing in the area for households with more households seeking Living Alone options and more households are considered Family Households in Plymouth in 2015 than there was in 2010 MAXFIELD RESEARCH AND CONSULTING 23 Page 3 5 DEMOGRAPHIC ANALYSIS Household Type Plymouth 2010 and 2015 12,000 ■ 2010 10,000 N ■ 2015 n O O 8,000 01 00 O v 6,000 - 7 O 2 4,000 - - 2,000 - o - Married with Child Married w/o Child Other Family Living Alone Roommates MAXFIELD RESEARCH AND CONSULTING 24 Page 36 TABLE D-7 HOUSEHOLD TYPE PLYMOUTH ANALYSIS AREA 2010 & 2015 Number of Households Plymouth . 2010 28,663 2015 30,267 Married w/o Child 2010 2015 8,971 10,072 HouseholdsFamily Married w/ Child Other * Living Alone Households Roommates 2010 2015 1,864 1,897 2010 2015 2010 2015 2010 2015 3,304 3,212 7,569 7,886 6,955 7,200 Hennepin County 475,913 490,196 116,099 123,135 89,084 92,038 67,702 68,773 155,807 160,687 47,221 45,563 Twin Cities Metro Area 1,117,749 1,150,154 298,723 316,180 244,687 247,506 164,086 167,069 319,030 331,010 91,223 88,389 Percent of Total Plymouth 100% 100% 31.3% 33.3% 24.3% 23.8% 11.5% 10.6% 26.4% 26.1% 6.5% 6.3% Hennepin County Total 100% 100% 24.4% 25.1% 18.7% 18.8% 14.2% 14.0% 32.7% 32.8% 9.9% 9.3% Twin Cities Metro Area Total j 100% 100%1 1 26.7% 27.5%1 1 21.9% 21.5%1 1 14.7% 14.5%1 j 28.5% 28.8%1 8.2% 7.7% * Single -parent families, unmarried couples with children. Sources: U.S. Census Bureau; Maxfield Research & Consulting, LLC Household Type Plymouth 2010 and 2015 12,000 ■ 2010 10,000 N ■ 2015 n O O 8,000 01 00 O v 6,000 - 7 O 2 4,000 - - 2,000 - o - Married with Child Married w/o Child Other Family Living Alone Roommates MAXFIELD RESEARCH AND CONSULTING 24 Page 36 DEMOGRAPHIC ANALYSIS Tenure by Household Size Table D-8 shows the distribution of households by size and tenure in the Plymouth in 2015 and 2010. This data is useful in that it sheds insight into the number of units by unit type that may be most needed in Plymouth. • Household size for renters tends to be smaller than for owners. This trend is a result of the typical market segments for rental housing, including households that are younger and are less likely to be married with children as well as older adults and seniors who choose to downsize from their single-family homes. In 2015, approximately 40% of the total renter - occupied households in the Plymouth were one-person households. Approximately 68% of renter households in Plymouth in 2015 have either one or two peo- ple. The one-person households would primarily seek one -bedroom units and two -person households that are couples would primarily seek one -bedroom units. Two -person house- holds that consist of a parent and child or roommate would primarily seek two-bedroom units. Larger households would seek units with multiple bedrooms. MAXFIELD RESEARCH AND CONSULTING 25 Page 37 TABLE D-8 TENURE BY HOUSEHOLD SIZE PLYMOUTH ANALYSIS AREA 2010 & 2015 2015 City of Plymouth Hennepin County Metro Area Owners Pct. Renters Pct. Owners Pct. Renters Pct. Age Renters Pct. Owners Pct. 82,196 51.2 IPP Household 4,705 59.7 3,181 40.3 78,491 48.8 175,681 53.1 155,329 46.9 2PP Household 8,649 75.9 2,746 24.1 114,302 69.7 49,741 30.3 287,943 74.5 98,732 25.5 3PP Household 3,382 68.8 1,531 31.2 46,133 67.5 22,257 32.5 124,856 72.6 47,146 27.4 4PP Household 3,404 80.6 818 19.4 42,974 73.8 15,250 26.2 122,186 78.7 33,141 21.3 5PP Household 1,122 82.0 247 18.0 16,681 70.4 7,022 29.6 49,255 74.3 17,005 25.7 6PP Household 239 67.1 117 32.9 5,398 60.7 3,495 39.3 15,930 68.3 7,398 31.7 7PP+ Household 111 88.1 15 11.9 3,416 54.6 2,840 45.4 9,561 61.5 5,991 38.5 21,612 71.4 1 182,801 37.3 Total 1 8,655 28.6 1 307,395 62.7 1 785,412 68.3 1 364,742 31.7 2.37 2.18 Average HH Size 2.02 2.52 2.63 2.19 City of Plymouth Hennepin County Metro Area Age Owners Pct. RentersPct. Owners Pct. Renters Pct. Owners Pct. Renters Pct. IPP Household 4,445 58.7 3,124 41.3 77,198 49.5 78,609 50.5 171,241 53.7 147,789 46.3 2PP Household 7,888 75.2 2,597 24.8 112,157 71.5 44,706 28.5 280,552 76.3 87,139 23.7 31313 Household 3,266 74.1 1,143 25.9 47,338 70.3 20,044 29.7 128,197 75.1 42,563 24.9 4PP Household 3,474 83.7 677 16.3 42,878 76.3 13,330 23.7 123,219 80.6 29,587 19.4 5PP Household 1,234 83.9 237 16.1 16,863 71.7 6,653 28.3 50,854 77.4 14,883 22.6 61313 Household 334 80.5 81 19.5 5,442 62.6 3,255 37.4 16,887 71.0 6,908 29.0 7PP+ Household 1 115 70.6 48 29.4 4,245 57.1 3,195 42.9 11,525 64.3 6,405 35.7 Total 1 20,756 72.4 1 7,907 27.6 1 306,121 64.3 1 169,792 35.7 1 782,475 70.0 1 335,274 30.0 Average HH Size 2.37 1.86 2.51 2.12 2.64 2.18 Sources: U.S. Census; Maxfield Research & Consutling, LLC MAXFIELD RESEARCH AND CONSULTING 25 Page 37 DEMOGRAPHIC ANALYSIS • One-person households in the Plymouth have the highest percentage of renters among all household types. Seven -person plus households have the lowest renter percentage among all household types (11.9%). Renter Household Size City of Plymouth 45.0% 40.0% 35.0% — 30.0% 25.0% — 20.0% — 15.0% - — 10.0% - 5.0% 0.0% 1PP 2PP 3PP 4PP 5PP 6PP 7PP+ Household Household Household Household Household Household Household 2010 2015 Diversity The population distribution by race, Table D-9 presents the diversity of the population in Plym- outh and Hennepin County for 2010 and 2015. The data was obtained from the U.S. Census. • In 2015, "White Alone" comprised the largest proportion of the population in Plymouth (83.2%), Hennepin County (74.3%), and the Metro Area (78.2%). The percentage has de- creased since 2010 where "White Alone" was 84.2% in Plymouth, 74.4% in Hennepin County, and 78.8% in the Metro Area. • U.S. Census respondents that list themselves ethnically as Hispanic or Latino, racially list themselves in various race categories. As of 2015, 3.8% of Plymouth's population was His- panic/Latino. The Hispanic/Latino population was 3.0% of Plymouth's population in 2010. • The race "Asian Alone" experienced the largest percentage growth between 2010 and 2015 in Plymouth, increasing by +1.4% from 4,888 to 6,112 people. MAXFIELD RESEARCH AND CONSULTING 26 Page 38 DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING Hispanic or Latino 1 Ethnicity not Race 2010 2,117 77,676 2015 2,772 81,719 167,558 TABLE D-9 3.0% 6.7% 3.8% 6.8% 5.9% 6.1% POPULATION DISTRIBUTION BY RACE PLYMOUTH ANALYSIS AREA 2010 and 2015 American Indian Native Hawaiian Black or African Two or More White Alone and Alaska Native and Pacific Islander Asian Alone Some Other Race American Alone Alone NUMBER Alone (AIAN) Alone (NHPI) 2010 2015 2010 2015 2010 2015 2010 2015 2010 2015 2010 2015 2010 Plymouth 59,460 61,450 3,704 3,756 188 315 22 0 4,888 6,112 717 362 1,597 Hennepin County 856,834 889,634 136,262 145,718 10,591 8,273 506 475 71,905 81,406 38,878 30,305 37,449 Metro Area 2,246,356 2,309,380 238,723 257,069 20,219 17,200 1,262 1,164 183,421 207,088 74,516 61,390 84,383 ]Rae PERCENTAGE Plymouth 84.2% 83.2% 5.2% 5.1% 0.3% 0.4% 0.03% 0.00% 6.9% 8.3% 1.0% 0.5% 2.3% Hennepin County 74.4% 74.3% 11.8% 12.2% 0.9% 0.7% 0.0% 0.0% 6.2% 6.8% 3.4% 2.5% 3.2% Metro Area 78.8% 78.2% 8.4% 8.7% 0.7% 0.6% 0.0% 0.0% 6.4% 7.0% 2.6% 2.1% 3.0% US Census respondents list themselves ethnically Hispanic or Latino and racially in one of the other listed categories. Sources: U.S. Census Bureau ACS; Maxfield Research and Consulting LLC MAXFIELD RESEARCH AND CONSULTING Hispanic or Latino 1 Ethnicity not Race 2010 2,117 77,676 2015 2,772 81,719 167,558 179,371 3.0% 6.7% 3.8% 6.8% 5.9% 6.1% 2% Page 39 DEMOGRAPHIC ANALYSIS Mobility in the Past Year Table D-10 shows the mobility patterns of Plymouth residents within a one-year time frame (2015 is the last year available). • The majority of residents in the Plymouth (84.7%) did not move within the last year. • Of the remaining 15.3% of residents that moved within the last year, approximately 3.7% moved from outside of Hennepin County but within Minnesota and 8.4% were intra -county moves (i.e. one location in Hennepin County to another Hennepin County location). • A greater proportion of younger age cohorts (a large student population) tended to move compared to older age cohorts. Approximately 30.7% of those age 18 to 24 moved within the last year compared to 9.6% of those age 75+. Demographic Comparison Table D-11, on the following page, provides a demographic summary that compares the City of Plymouth to neighboring cities in the Metro Area. MAXFIELD RESEARCH AND CONSULTING 28 Page 40 TABLE D-10 MOBILITY ESTIMATE IN THE PAST YEAR BY AGE FOR CURRENT RESIDENCE PLYMOUTH ANALYSIS AREA 2015 Not Moved Moved City of Plymouth Same House Within Same County Different County Same State Different State Abroad Age No. Pct. No. Pct. No. Pct. No. Pct. No. Pct. 13,171 84.3% 1,518 9.7% 378 2.4% 331 2.1% 222 1.4% Under 18 18 to 24 3,110 69.3% 736 16.4% 465 10.4% 162 3.6% 15 0.3% 25 to 34 7,418 67.6% 1,798 16.4% 1,008 9.2% 528 4.8% 216 2.0% 35 to 44 7,982 82.8% 960 10.0% 367 3.8% 191 2.0% 141 1.5% 45 to 54 10,110 91.4% 519 4.7% 188 1.7% 235 2.1% 5 0.0% 55 to 64 9,897 95.4% 226 2.2% 97 0.9% 138 1.3% 15 0.1% 65 to 74 5,956 95.4% 180 2.9% 44 0.7% 23 0.4% 42 0.7% 75+ 4,088 90.4% 191 4.2% 174 3.8% 23 0.5% 46 1.0% Total 61,732 84.791. 1 6,128 8.4% 1 2,721 3.7% 1 1,631 2.2% 1 702 1.0% Sources: 2010-2015 American Community Survey; Maxfield Research and Consulting LLC Demographic Comparison Table D-11, on the following page, provides a demographic summary that compares the City of Plymouth to neighboring cities in the Metro Area. MAXFIELD RESEARCH AND CONSULTING 28 Page 40 DEMOGRAPHIC ANALYSIS TABLE D-11 DEMOGRAPHIC COMPARISON PLYMOUTH ANALYSIS AREA r - Num Pct. Num Pct. Num Pct. Num Pct. Num Pct. Num Pct. Num Pct. Num Pct. 48,973 Total Population and Households 76,150 64,545 51,476 21,536 69,340 6,259 52,664 Population (2017) Households (2017) 31,200 25,205 22,121 9,260 25,516 2,164 23,054 23,440 Age Distribution (2017) Under25 22,626 29.7% 20,637 32.0% 14,677 28.5% 5,420 25.2% 22,300 32.2% 2,015 32.2% 13,416 25.5% 12,855 26.2% 25 to 34 9,761 12.8% 8,045 12.5% 4,322 8.4% 2,126 9.9% 8,729 12.6% 494 7.9% 6,027 11.4% 10,152 20.7% 35 to 44 10,108 13.3% 8,843 13.7% 5,242 10.2% 2,568 11.9% 10,181 14.7% 608 9.7% 5,911 11.2% 6,889 14.1% 45 to 54 10,662 14.0% 9,649 14.9% 7,024 13.6% 2,983 13.9% 10,612 15.3% 1,094 17.5% 7,103 13.5% 5,910 12.1% 55 to 64 11,142 14.6% 9,608 14.9% 7,771 15.1% 3,406 15.8% 9,873 14.2% 1,074 17.2% 8,988 17.1% 5,738 11.7% 65 to 74 7,208 9.5% 5,048 7.8% 5,867 11.4% 2,429 11.3% 5,377 7.8% 625 10.0% 6,304 12.0% 3,784 7.7% 75+ 4,644 6.1% 2,715 4.2% 6,573 12.8% 2,611 12.1% 2,270 3.3% 351 5.6% 4,915 9.3% 3,645 7.4% Household Income (2017) $129,033 $136,890 $144,691 $117,872 $130,196 $162,377 $124,916 $92,219 Average Household Income Median Household Income $96,274 $103,684 $92,620 $89,183 $102,799 $107,270 $88,511 $69,125 Net Worth (2017) $1,131,424 $1,046,325 $1,782,745 $1,323,912 $1,123,496 $1,472,410 $1,275,545 $546,693 Average Net Worth Median Net Worth $300,121 $333,183 $363,665 $325,546 $393,432 $500,001 $306,465 $110,945 Household Tenure (2 Owner 21,612 71.4% 17,776 72.8% 15,327 73.4% 6,851 76.9% 21,019 84.4% 1,735 93.6% 15,995 70.5% 12,705 56.8% Renter 8,655 28.6% 6,643 27.2% 5,554 26.6% 2,054 23.1% 3,885 15.6% 119 6.4% 6,681 29.5% 9,662 43.2% Household Type (2010) Married With Children 6,955 24.3% 6,834 28.6% 4,955 20.7% 1,648 18.7% 7,123 31.1% 626 36.8% 4,306 19.7% 3,084 14.2% Married Without Children 8,971 31.3% 7,091 29.6% 6,153 25.7% 2,784 31.6% 7,508 32.8% 640 37.6% 7,104 32.4% 4,647 21.4% Other 3,304 11.5% 2,592 10.8% 1,810 7.6% 985 11.2% 2,591 11.3% 120 7.1% 2,209 10.1% 2,728 12.5% Living Alone 7,569 26.4% 6,004 25.1% 6,851 28.6% 2,682 30.4% 4,415 19.3% 266 15.6% 6,821 31.1% 8,716 40.1% Roommates 1,864 6.5% 1,409 5.9% 903 3.8% 717 8.1% 1,230 5.4% 50 2.9% 1,461 6.7% 2,568 11.8% Source: U.S. Census Bureau; ESRI; Maxfield Research, Inc. MAXFIELD RESEARCH AND CONSULTING 29 Page 41 DEMOGRAPHIC ANALYSIS Summary of Demographic Trends The following points summarize key demographic trends that will impact demand for housing throughout the Plymouth. • The City of Plymouth experienced a population increase between 2000 and 2017, by gaining an estimated 10,256 people (+15.6%), and 6,380 households (+25.7%). • Between 2010 and 2040, Plymouth's population is expected to increase by +20.6% (+14,524 people) while the number of households is expected to increase by +15.7% (+4,718 house- holds). The City of Plymouth can expect to see continued population growth since it is lo- cated near employment opportunities and urban services that would support residential de- velopment. More people will choose to locate near their place of work as increasing trans- portation costs increase the desirability of living close to employment. As the amount of buildable land starts to dwindle within Plymouth, the City will need to consider options to support housing growth such as changes to building or zoning restrictions. • In the City of Plymouth, growth is projected to occur in all age cohorts except the 18 to 24 year olds (-3.7%), 45 to 54 year olds (-3.0%), and 55 to 64 year olds (0.0%) between 2017 and 2022. The greatest percentage growth is projected to occur among seniors 75 to 84 year olds (+31.7%). Plymouth has an estimated median household income of $96,274 in 2017 and is projected to increase over the next five years to $104,687. There are 736 non -senior households (3.1% of households with incomes less than $15,000) eligible for deep -subsidy rental hous- ing. Median incomes for households in Plymouth peak at $124,490 for the 45 to 54 age group in 2017. Incomes are expected to increase by 8.2% (1.6% annually) between 2017 and 2022 in the Plymouth. Plymouth had an average net worth of $1,131,424 in 2017 and a median net worth of $300,121. Median net worth is generally a more accurate depiction of wealth than the av- erage figure. A few households with very large net worth can significantly skew the aver- age. Typically, as income increases, so does the rate of homeownership. Homeownership in the Plymouth increases from 33.3% of households with incomes below $15,000 to 89.6% of households with incomes above $100,000. Between 2010 and 2015, Plymouth experienced an increase in all household types besides Other Family households, which decreased by -2.8%. Married families without children grew the most numerically, adding +1,101 households (+12.3%), The increase in households married without children can be attributed to couples waiting longer to have children, and the baby boomers aging into empty nester years. MAXFIELD RESEARCH AND CONSULTING 30 Page 42 DEMOGRAPHIC ANALYSIS An estimated 68.5% of renter households in Plymouth in 2015 had either one or two peo- ple. In 2015, "White Alone" (83.2%) comprised the largest proportion of the population in Plym- outh. The race "Asian Alone" experienced the largest percentage growth between 2010 and 2015 in Plymouth, increasing by +1.4% from 4,888 to 6,112 people. • Of Plymouth residents that moved in the past year, approximately 3.7% moved from out- side of Hennepin County but within Minnesota and 8.4% were intra -county moves. MAXFIELD RESEARCH AND CONSULTING 31 Page 43 EMPLOYMENT Employment Trends Since employment growth generally fuels household growth, employment trends are a reliable indicator of housing demand. Typically, households prefer to live near work for convenience. However, housing is often less expensive in smaller towns, making commuting from outlying communities to work in larger employment centers attractive for households concerned about housing affordability. Employment Growth and Projections Table E-1 shows projected employment growth in Plymouth, Hennepin County, and the Twin Cities Metro Area. Table E-1 shows employment growth trends and projections from 2000 to 2040 based on the most recent Minnesota Department of Employment and Economic Develop- ment (DEED) and Metropolitan Council employment outlook projections. TABLE E-1 EMPLOYMENT GROWTH TRENDS AND PROJECTIONS PLYMOUTH ANALYSIS AREA 2000-2040 Actual Forecast 2000-2010 2010-2020 2020-2030 .7 i „� ��lllllllllMI Plymouth 53,206 45,881 49,414 53,900 57,700 61,500 -7,325 -13.8% 8,019 17.5% 3,800 7.1% Hennepin County 874,882 803,733 883,488 924,710 981,800 1,038,140 -71,149 -8.1% 120,977 15.1% 57,090 6.2% Twin Cities Metro Area 1,600,741 1,537,041 1,675,271 1,791,080 1,913,050 2,032,660 -63,700 -4.0% 254,039 16.5% 121,970 6.8% *Values from 2000, 2010, 2015 Data is from MNDEED Quarterly Census of Employment and Wages Note: Twin Cities Metro represents the 7 -County planning region Sources: MN Dept of Employment and Economic Development; Metropolitan Council; Maxfield Research & Consulting, LLC. There was an estimated total of 49,414 jobs in Plymouth in 2015, which was 5.6% of the Hennepin County total (883,488 jobs). • The number of jobs in Plymouth is projected to grow by 8,019 jobs from 2010 through 2020 (17.5%). This projection is higher than what is expected for Hennepin County (15.1%) and the Twin Cities Metro Area (16.5%). Between 2010 and 2015 it is estimated that Plymouth added 3,533 jobs. Job creation in Plymouth continues to grow, making Plymouth more ap- pealing for housing. • Plymouth's employment is anticipated to increase by 7.1% between 2020 and 2030 and is forecast to increase another 7.1% between 2030 and 2040. MAXFIELD RESEARCH AND CONSULTING 32 Page 44 EMPLOYMENT Resident Labor Force Recent employment growth trends are shown in Tables E-2 and E-3. Table E-2 presents resi- dent employment data for the City of Plymouth from 2000 through June 2017. These numbers were derived from the proportion of jobs in Plymouth as compared to Hennepin County, the State of Minnesota, and the United States. Resident employment data is calculated as an an- nual average and reveals the workforce and number of employed persons living in the City. Itis important to note that not all of these individuals necessarily work in the City or County. Table E-3 presents covered employment numbers as available for the City of Plymouth from 2000 through 2016. Covered employment data is calculated as an annual average and reveals the number of jobs in the designated area, which are covered by unemployment insurance. Many temporary workforce positions, agricultural, self-employed persons, and some other types of jobs are not covered by unemployment insurance and are not included in the table. Some agri- cultural businesses and employees are listed in Table E-3, but not all positions are included. The data in both tables is sourced from the Minnesota Department of Employment and Economic Development. The following are key trends derived from the employment data: Resident Employment • Resident employment (number of employed persons) in Plymouth increased by approxi- mately 2,334 people between 2000 and June 2017 (+5.9%) and the unemployment rate in- creased from 2.3% (2000) to 3.1% in June 2017. By comparison, Hennepin County's unem- ployment rate was at 3.4% and the State of Minnesota was at 4.1% as of June 2017. Plymouth's unemployment rate has stayed lower than Minnesota's unemployment rate since 2000. The greatest yearly difference was 1.4% lower than the State in 2009. • The unemployment rate in Hennepin County increased to a high of 7.3% (2009) which was the peak of the recession. However, as of June 2017, the unemployment rate has fallen to 3.4%, which is considered to be below equilibrium (5.0%). MAXFIELD RESEARCH AND CONSULTING 33 Page 45 Unemployment Rate 2000 Through 2016 9.0% — 8.0 7.0% 6.0% 5.0 4.0% 3.0% 2.0% 1.0% 0.0% 2000 2002 2004 2006 2008 2010 2012 2014 2016 a Plymouth a Hennepin Co. 7 Co. MetroArea --e— Minnesota MAXFIELD RESEARCH AND CONSULTING 33 Page 45 EMPLOYMENT MAXFIELD RESEARCH AND CONSULTING 34 Page 46 TABLE E-2 ANNUAL AVERAGE RESIDENT EMPLOYMENT PLYMOUTH MN 2000 to 20171 Labor Year Force Employed Unemployed Rate PLYMOUTH 2000 40,187 39,258 929 2.3% 2005 41,365 40,081 1,284 3.1% 2010 40,078 37,558 2,520 6.3% 2015 42,095 40,828 1,267 3.0% 2016 42,570 41,264 1,306 3.1% 20171 42,922 41,592 1,330 3.1% Change 2000-20171 Number 2,735 2,334 401 -- Percent 6.8% 5.9% 43.2% -- HENNEPIN COUNTY 2000 666,621 648,571 18,050 2.7% 2005 652,568 628,595 23,973 3.7% 2010 650,891 605,294 45,597 7.0% 2015 671,702 649,491 22,211 3.3% 2016 679,285 656,426 22,859 3.4% 20171 685,177 661,652 23,525 3.4% MINNESOTA 2010 2,938,795 2,721,194 217,601 7.4% 2015 2,975,533 2,864,583 110,950 3.7% 2016 3,006,324 2,888,922 117,402 3.9% 20171 3,019,856 2,895,136 124,720 4.1% U.S. Z 2010 153,889 139,878 14,011 9.6% 2015 157,130 148,833 8,297 5.3% 2016 159,396 151,769 7,627 4.8% 20171 159,867 152,584 7,283 4.6% 1 Through June 2017 z Estimated in Thousands Note: Data not seasonally adjusted Sources: U.S. Department of Labor, MN Workforce Center, Maxfield Research and Consulting LLC MAXFIELD RESEARCH AND CONSULTING 34 Page 46 EMPLOYMENT Covered Employment by Industry • Between 2000 and 2016, the number of jobs decreased in Plymouth by -1,718, a -3.2% de- crease in the City. Education and Health Services gained the greatest number of jobs (+1,995, jobs) between 2000 and 2016. Manufacturing declined the most (-5,228 jobs) be- tween 2000 and 2016. Employment, Earnings, and Employment by Educational Attainment Table E-4 displays information on the employment by earnings, Table E-5 identifies employ- ment by educational attainment, and Table E-6 is the business summary in. The employment by earnings and the employment by educational attainment are both sourced by the US Census for 2014 while the business summary for Plymouth is sourced from ESRI for 2017. It should be noted that certain industries in Table E-6 may not display any information which means that there is either no reported economic activity for that industry or the data has been suppressed to protect the confidentiality of cooperating employers. This generally occurs when there are too few employers or one employer comprises too much of the employment in that geography. As of 2014, approximately 21,910 (57.8%) employees make more than $3,333 per month in Plymouth. This is a higher percentage than Hennepin County (49.8%) and the Metro Area (49.5%) of those who make more than $3,333 per month. MAXFIELD RESEARCH AND CONSULTING 35 Page 47 TABLE E-3 COVERED EMPLOYMENT TRENDS PLYMOUTH MN 2000, 2005, 2010, 2015, 2016 North American Industrial Classification System (NAILS) Change Average Number of Employees2000 - 2016% of Total Industry 2000 2005 2010 2015 2016 No. Pct. 2000 2005 2010 2015 2016 Natural Resources & Mining 213 195 180 167 183 -30 -14.1% 0.4% 0.4% 0.4% 0.3% 0.4% Construction 2,213 2,115 1,593 2,220 2,154 -59 -2.7% 4.2% 4.2% 3.6% 4.5% 4.2% Manufacturing 15,034 12,449 9,379 10,041 9,806 -5,228 -34.8% 28.3% 24.7% 20.9% 20.3% 19.0% Trade, Transportation, and Utilities 11,219 10,636 9,113 10,965 11,428 209 1.9% 21.1% 21.1% 20.3% 22.2% 22.2% Information 1,499 1,105 1,281 727 722 -777 -51.8% 2.8% 2.2% 2.9% 1.5% 1.4% Financial Services 4,676 4,496 4,433 3,774 5,179 503 10.8% 8.8% 8.9% 9.9% 7.6% 10.1% Professional and Business Services 10,076 9,185 9,506 9,627 10,096 20 0.2% 18.9% 18.2% 21.2% 19.5% 19.6% Education and Health Services 3,957 4,964 4,793 5,884 5,952 1,995 50.4% 7.4% 9.8% 10.7% 11.9% 11.6% Leisure and Hospitality 2,314 2,931 3,061 3,009 2,949 635 27.4% 4.3% 5.8% 6.8% 6.1% 5.7% Other Services 1,011 1,067 - 1,464 1,403 392 38.8% 1.9% 2.1% - 3.0% 2.7% Public Administration 989 1,273 1,504 1,553 1,611 1 622 62.9% 1 1.9% 2.5% 3.4% 3.1% 3.1% Totals 53,201 50,416 44,843 49,431 51,483 1 -1,718 -3.2% Source: Minnesota Workforce Center; Maxfield Research & Consulting, LLC Employment, Earnings, and Employment by Educational Attainment Table E-4 displays information on the employment by earnings, Table E-5 identifies employ- ment by educational attainment, and Table E-6 is the business summary in. The employment by earnings and the employment by educational attainment are both sourced by the US Census for 2014 while the business summary for Plymouth is sourced from ESRI for 2017. It should be noted that certain industries in Table E-6 may not display any information which means that there is either no reported economic activity for that industry or the data has been suppressed to protect the confidentiality of cooperating employers. This generally occurs when there are too few employers or one employer comprises too much of the employment in that geography. As of 2014, approximately 21,910 (57.8%) employees make more than $3,333 per month in Plymouth. This is a higher percentage than Hennepin County (49.8%) and the Metro Area (49.5%) of those who make more than $3,333 per month. MAXFIELD RESEARCH AND CONSULTING 35 Page 47 EMPLOYMENT • As of 2014, approximately 11,872 (31.3%) employees have a bachelor's degree or advanced degree. This is a higher percentage than Hennepin County and the Metro Area where 27.5% and 27.0% respectively have a bachelor's or advanced degree. MAXFIELD RESEARCH AND CONSULTING 36 Page 48 TABLE E-4 EMPLOYMENT EMPLOYMENT BY EARNINGS PLYMOUTH ANALYSIS AREA PLYMOUTH ANALYSIS AREA 2014 2014 Plymouth Hennepin County Metro Area Type No. Pct. No. Pct. No. Pct. $1,250/month or less 8,011 21.1% 138,086 22.9% 353,773 23.3% $1,251 to $3,333/month 8,007 21.1% 164,242 27.3% 413,324 27.2% More than $3,333/month 21,910 57.8% 300,130 49.8% 750,898 49.5% Total 37,928 100% 602,458 100% 1,517,995 100% Sources: US Census Bureau; Maxfield Research & Consulting, LLC 410,475 27.0% Educational Attainment Not Available 7,968 21.0% MAXFIELD RESEARCH AND CONSULTING 36 Page 48 TABLE E-5 EMPLOYMENT BY EDUCATIONAL ATTAINMENT PLYMOUTH ANALYSIS AREA 2014 Plymouth Hennepin County Metro Area No. Pct. No. 36,078 Pct. 6.0% No. 87,877 Pct. 5.8% Type Less Than High School 1,865 4.9% High School or Equivalent, No College 6,705 17.7% 109,293 18.1% 281,815 18.6% Some College or Associate Degree 9,518 25.1% 147,741 24.5% 379,952 25.0% Bachelor's Degree or Advanced Degree 11,872 31.3% 165,460 27.5% 410,475 27.0% Educational Attainment Not Available 7,968 21.0% 143,886 23.9% 357,876 23.6% Total 37,928 100% 602,458 100% 1,517,995 100% Sources: US Census Bureau; Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 36 Page 48 EMPLOYMENT TABLE E-6 BUSINESS SUMMARY - BY NAICS CODE PLYMOUTH MN 2017 Business/Industry Number Pct Pct NAICS CODES Agriculture & Mining 7 0.2% 0.1% Mining 3 0.1% 0.0% Utilities 2 0.1% 0.0% Construction 225 7.2% 7.2% Manufacturing 211 6.7% 16.6% Wholesale Trade 216 6.9% 9.9% Retail Trade 330 10.5% 10.2% Transportation & Warehousing 37 1.2% 0.8% Information 86 2.7% 4.0% Finance & Insurance 228 7.3% 11.3% Real Estate, Rental & Leasing 205 6.5% 2.6% Professional, Scientific & Tech Services 384 12.2% 9.8% Management of Companies & Enterprises 6 0.2% 0.3% Admin& Support & Waste Management & Remediation Services 148 4.7% 2.5% Educational Services 75 2.4% 5.1% Health Care & Social Assistance 297 9.5% 7.7% Arts, Entertainment & Recreation 55 1.8% 1.9% Accommodation & Food Services 139 4.4% 5.1% Other Services (except Public Administration) 249 7.9% 3.3% Public Administration 20 0.6% 1.1% Unclassified Establishments 213 6.8% 0.4% Total 3,136 100.0% 100.0% Sources: ESRI, Maxfield Research & Consulting, LLC • As of 2017, there were approximately 3,136 businesses in the City of Plymouth. • Professional, Scientific and Technical Services have the highest proportion of establishments (12.2%), while the Manufacturing sector had the highest proportion of employees (16.6%) in Plymouth. • The Retail Trade sector is one of the largest industry types in Plymouth with 10.5% busi- nesses and 10.2% employees. • The Finance & Insurance sector account for the second largest share of employees (11.3%) and ranked fifth in proportion of businesses (7.3%). MAXFIELD RESEARCH AND CONSULTING 37 Page 49 EMPLOYMENT Commuting Patterns Proximity to employment is often a primary consideration when choosing where to live, since transportation costs often account for a large proportion of households' budgets. Table E-7 highlights the commuting patterns of workers in Plymouth in 2014 (the most recent data availa- ble), based on Employer -Household Dynamics data from the U.S. Census Bureau. As shown in Table E-7, 13.1% of Plymouth residents were employed in Plymouth. Most em- ployees that live in Plymouth commuted to jobs in Minneapolis (20.8%). • Of the workers who work in Plymouth, 9.9% also live in Plymouth. The remaining workers are commuting from mostly Minneapolis (7.4%), Maple Grove (5.9%), and Brooklyn Park (4.3%). MAXFIELD RESEARCH AND CONSULTING 38 Page 50 EMPLOYMENT MAXFIELD RESEARCH AND CONSULTING 39 Page 51 TABLE E-7 PLYMOUTH COMMUTING PATTERNS 2014 Place of Residence Place of Employment Count Percent Place of Residence for Plymouth city, MN Workers Commuting to Plymouth Plymouth 4,980 9.9% Minneapolis city, MN Plymouth 3,746 7.4% Maple Grove city, MN Plymouth 2,966 5.9% Brooklyn Park city, MN Plymouth 2,158 4.3% St. Paul city, MN Plymouth 1,451 2.9% Minnetonka city, MN Plymouth 1,317 2.6% Coon Rapids city, MN Plymouth 1,083 2.1% St. Louis Park city, MN Plymouth 1,079 2.1% Eden Prairie city, MN Plymouth 1,022 2.0% Crystal city, MN Plymouth 949 1.9% All Other Locations Plymouth 29,800 59.0% Metro Area Plymouth 40,362 79.8% Outstate MN Plymouth 9,398 18.6% Other State Plymouth 791 1.6% EmploymentPlace 50,551 100.0% of Plymouth .- Minneapolis city, MN 7,879 20.8% Plymouth Plymouth city, MN 4,980 13.1% Plymouth Minnetonka city, MN 2,370 6.2% Plymouth Golden Valley city, MN 2,131 5.6% Plymouth Bloomington city, MN 1,598 4.2% Plymouth Maple Grove city, MN 1,479 3.9% Plymouth St. Paul city, MN 1,424 3.8% Plymouth St. Louis Park city, MN 1,389 3.7% Plymouth Eden Prairie city, MN 1,196 3.2% Plymouth Edina city, MN 1,145 3.0% Plymouth All Other Locations 12,337 32.5% Plymouth Metro Area 35,776 94.4% Plymouth Outstate MN 1,645 4.3% Plymouth Other State 507 1.3% 37,928 100.0% Sources: Longitudinal Employer -Household Dynamics; Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 39 Page 51 EMPLOYMENT Inflow/Outflow Table E-8 provides a summary of the inflow and outflow of workers in the City of Plymouth. Outflow reflects the number of workers living in the City of Plymouth but employed outside of the city while inflow measures the number of workers that are employed in the City of Plym- outh but live outside. Interior flow reflects the number of workers that both live and work in the City of Plymouth. • The City of Plymouth can be considered a major importer of workers, as the number of resi- dents coming into the City (inflow) for employment was more than the number of residents leaving the City for work (outflow). Approximately 45,571 workers came into the City of Plymouth for work while 32,948 workers left, for a net difference of 12,623. TABLE E-8 COMMUTING INFLOW/OUTFLOW PLYMOUTH MN 2014 Employed in the Selection Area Employed in the Selection Area but Living Outside Employed and Living in the Selection Area Living in the Selection Area Living in the Selection Area but Employed Outside Living and Employed in the Selection Area Commuting Distance - Work to Home Less than 10 miles 10 to 24 miles 25 to 50 miles Greater than 50 miles Commuting Distance - Home to Work Less than 10 miles 10 to 24 miles 25 to 50 miles Greater than 50 miles Plymouth 20,833 Num. Pct. 50,551 100% 45,571 90.1% 4,980 9.9% 37,928 100% 32,948 86.9% 4,980 13.19/ Num. Pct. 20,833 41.2% 21,202 41.9% 4,886 9.7% 3,630 7.2% Num. Pct. 20,141 53.1% 15,676 41.3% 623 1.6% 1,488 3.9% Sources: Longitudinal Employer -Household Dynamics; Maxfield Research and Consulting LLC MAXFIELD RESEARCH AND CONSULTING 40 Page 52 EMPLOYMENT Sources: Longitudinal Employer -Household Dynamics MAXFIELD RESEARCH AND CONSULTING 41 Page 53 EMPLOYMENT Major Employers Table E-9 shows the major employers in Plymouth based on data provided by the City of Plym- outh. Please note that the table is not a comprehensive list of all employers and presents a se- lected list of employers and their employees as identified by the City of Plymouth. The follow- ing are key points from the major employers table. • Independent School District No. 284 is the largest identified employer with approximately 1,505 employees. Quadion Holdings LLC employs over 1,000 employees. Another major employer in Plymouth is Abbott, previously St. Jude Medical, with approximately 800 em- ployees. TABLE E-9 MAJOR EMPLOYERS CITY OF PLYMOUTH 2017 Independent School Dist No.284 (Wayzata) 1,505 Quadion Holdings LLC 1,100 Abbott (Previously St Jude Medical) 800 Uniprise Inc 600 Smiths Medical Asd, Inc. 576 Honeywell International Inc. 500 Sterilmed, Inc. 500 Realogy Holdings Corp. 485 Daikin Applied Americas Inc. 450 Covidien LP 430 Medivators Inc. 413 Fluke Electronics Corporation 413 Flynn America LP 400 Onebeacon Insurance Group LLC 400 Source: City of Plymouth; Maxfield Research and Consulting LLC • The list of major employers represents several industry sectors, but the highest concentra- tions of large employers are in the Educational Services, Healthcare & Social Assistance, and Manufacturing sectors. • The top four employers account for approximately 47% of the employee base out of the major employers in the City of Plymouth. MAXFIELD RESEARCH AND CONSULTING 42 Page 54 EMPLOYMENT Employment Interview Maxfield Research and Consulting LLC interviewed a small sample size of economic develop- ment specialists and local officials regarding major employment changes and other issues that may impact long-term employment projections in Plymouth. Community economic develop- ment information provides useful job growth data and assists in identifying housing demand in an area. Though our sample size was small, we encourage diving deeper into interviewing local employers. The following summarizes key points derived from the information provided. • Some employers noted that they had employees having longer commutes, traveling from cities like St. Paul, Blaine, and Monticello. • Rental housing is often desired among newer and younger employees. Other employees would prefer to rent before they establish their roots in the community and purchase a home. • Many middle- to upper positioned employees come from already established backgrounds and primarily consist of home -owners as opposed to renters. MAXFIELD RESEARCH AND CONSULTING 43 Page 55 HOUSING CHARACTERISTICS Introduction The variety and condition of the housing stock in a community provides the basis for an attrac- tive living environment. Housing functions as a building block for neighborhoods and goods and services. We initially examined the characteristics of the housing supply in Plymouth by re- viewing data on the age of the existing housing stock; examining residential building trends since 2000; and reviewing housing data from the American Community Survey that relates to the City of Plymouth. Residential Construction Trends 2000 to Present Maxfield Research obtained data from the Metropolitan Council on the number of building per- mits issued for new housing units in Plymouth from 2000 through 2016 and compared this with the number of units permitted as identified by the City of Plymouth. Table HC -1 displays units permitted issued for different housing types as reported by Metropolitan Council and verified with the City of Plymouth. Table HC -2 displays total units permitted and demolition permits for single-family detached units as recorded by the City of Plymouth. The following are key points about housing development since 2000. • Per the Metropolitan Council, the City of Plymouth issued 7,225 permits between 2000 and 2016. That equates to about 401 residential units permitted annually since 2000. • Since 2007, there have been a decreasing number of single-family attached homes permits. The City of Plymouth saw a high of 186 single-family attached units permitted in 2004, but has only averaged 25 units permitted since 2008. • The City of Plymouth averages roughly 160 multifamily units permitted each year since 2000. Plymouth issued a high of 938 multifamily units in 2002. There were a total of seven years between 2000 and 2016 were no multifamily permits were issued. • The City of Plymouth has issued roughly 15 demolition permits for single-family detached units per year between 2000 and 2017 for a total of 278 single-family detached demo per- mits. MAXFIELD RESEARCH AND CONSULTING 44 Page 56 HOUSING CHARACTERISTICS 1000 900 800 700 600 N c 500 D 400 300 200 100 0 New Construction Permitted (Units): 2000th rough 2016 ■Single-family (Detached) ■ Multifamily (5+ Units) 1 1 2000 01 02 03 04 2005 06 07 08 09 2010 11 12 13 14 2015 Year MAXFIELD RESEARCH AND CONSULTING 45 Page 57 HC -1 RESIDENTIAL CONSTRUCTION BUILDING PERMITTED UNITS ISSUED CITY OF PLYMOUTH per Metropolitan Council & City of Plymouth 2000 to 2016 Units Permitted ownhomes Single -Family (Single -Family Duplex, Triplex, Multifamily (5+ Year (Detached) Attached) Quadplex Units)* Total Units 2000 142 142 0 77 361 2001 86 94 0 621 801 2002 115 165 0 938 1,218 2003 136 179 0 332 647 2004 75 186 28 0 289 2005 31 164 2 170 367 2006 47 124 14 66 251 2007 105 114 4 0 223 2008 79 66 0 0 145 2009 59 16 0 0 75 2010 94 39 0 0 133 2011 184 35 2 67 288 2012 247 16 0 90 353 2013 261 8 0 194 463 2014 291 12 0 0 303 2015 272 20 0 157 449 2016 290 11 0 0 301 Total 2,514 1,391 50 2,712 6,667 * 2000-2003 may contain units from structures of 3+ units Sources: Metropolitan Council; City of Plymouth; Maxfield Research & Consulting LLC 1000 900 800 700 600 N c 500 D 400 300 200 100 0 New Construction Permitted (Units): 2000th rough 2016 ■Single-family (Detached) ■ Multifamily (5+ Units) 1 1 2000 01 02 03 04 2005 06 07 08 09 2010 11 12 13 14 2015 Year MAXFIELD RESEARCH AND CONSULTING 45 Page 57 HOUSING CHARACTERISTICS MAXFIELD RESEARCH AND CONSULTING 46 Page 58 HC -2 RESIDENTIAL CONSTRUCTION BUILDING & DEMO PERMITS CITY OF PLYMOUTH 2000 to 2017 Total SF Demo Permits Year Total Building Permits Issued Issued 2000 361 7 2001 801 18 2002 1,218 10 2003 647 10 2004 289 12 2005 367 12 2006 251 16 2007 223 16 2008 145 7 2009 75 9 2010 133 14 2011 288 9 2012 353 8 2013 463 15 2014 303 40 2015 449 31 2016 301 30 2017 558 14 Total 7,225 278 Sources: City of Plymouth; Maxfield Research and Consulting LLC MAXFIELD RESEARCH AND CONSULTING 46 Page 58 HOUSING CHARACTERISTICS American Community Survey The American Community Survey ("ACS") is an ongoing statistical survey administered by the U.S. Census Bureau that is sent to approximately 3 million addresses annually. The survey gath- ers data previously contained only in the long form of the Decennial Census. As a result, the survey is ongoing and provides a more "up-to-date" portrait of demographic, economic, social, and household characteristics every year, not just every ten years. The most recent ACS high- lights data collected between 2011 and 2015. Tables HC -3 to HC -7 show key data for Plymouth. Age of Housing Stock The following graph shows the age distribution of the housing stock in 2015 based on data from the U.S. Census Bureau American Community Survey (5 -Year). Table HC -3 includes the number of housing units built in Plymouth, prior to 1940 and during each decade since. • As of 2015, the City of Plymouth was estimated to have 30,267 housing units, of which roughly 71.4% were owner -occupied and 28.6% were renter -occupied. In Hennepin County, approximately 37.3% were renter -occupied while in Minnesota 26.2% of the hous- ing stock was renter -occupied. • Homes in Plymouth are newer than homes in Hennepin County. Most housing (68.2%) was built in the 1970's, 1980's and 1990's. The greatest number of homes in Plymouth were constructed in the 1980's (roughly 27%). By comparison, the highest number of homes in Hennepin County was built prior to 1940 (19.2%). • Compared to Hennepin County and the Twin Cities Metro Area, 16.7% of Plymouth's hous- ing stock has been built since 2000 compared to 10.5% of Hennepin County, 8.6% of Twin Cities Metro Area. • Per the City of Plymouth, 508 multifamily units have been permitted since 2010. MAXFIELD RESEARCH AND CONSULTING 47 Page 59 HOUSING CHARACTERISTICS MAXFIELD RESEARCH AND CONSULTING 48 Page 60 All Housing Units Built by Decade City of Plymouth 9,000 TABLE HC -3 AGE OF HOUSING STOCK PLYMOUTH ANALYSIS AREA 2015 8,000 7,000 6,000 - Total Med: Yr. "r No. Pct."NIcl. "NIcl. "NIcl."Nolcl. Year Unit Built "NPct, 2,000 "lPcl. - rr�uilt No. Pct. Ln - 0 CITY OF PLYMOUTH <1940s 1940s 1950s 1960s 1970s 19805 19905 20005 Decade of Construction Owner -Occupied Renter -Occupied 21,612 8,655 1963 1977 366 184 1.7 2.1 1 270 85 1.2 1.0 1 1,016 4.7 125 1.4 1,766 761 8.2 8.8 1 3,993 2,064 18.5 23.8 6,081 2,039 28.1 23.6 4,979 1,495 23.0 17.3 2,689 1,810 12.4 20.9 Total 30,267 1965 1 550 1.81 1 355 1.21 1 1,141 3.81 1 2,527 8.31 1 6,057 20.01 1 8,120 26.81 1 6,474 21.41 1 4,499 14.9 HENNEPIN COUNTY Owner -Occupied Renter -Occupied 307,395 182,801 1967 1972 59,724 34,320 19.4 18.8 20,362 8,125 6.6 4.4 51,676 16.8 31,070 15,373 8.4 25,179 10.1 13.8 38,821 37,714 12.6 20.6 43,979 26,723 14.3 14.6 30,348 15,328 9.9 8.4 28,552 17,116 9.3 9.4 Total 490,196 1970 1 94,044 19.21 1 28,487 5.81 1 67,049 13.71 1 56,249 11.51 1 76,535 15.61 1 70,702 14.41 1 45,676 9.31 1 45,668 9.3 METRO AREA Owner -Occupied Renter -Occupied 1,026,407 364,742 1974 1977 364,742 59,160 35.5 16.2 1 110,528 13,428 10.8 3.7 1 34,704 3.4 28,556 7.8 96,299 46,570 9.4 12.8 1 76,288 72,799 7.4 20.0 1 105,139 56,336 10.2 15.4 1 119,915 39,311 11.7 10.8 1 109,222 42,555 10.6 11.7 Total 1,391,149 1975 423,902 30.5 123,956 8.9 63,260 4.5 142,869 10.3 149,087 10.7 161,475 11.6 159,226 11.4 151,777 7.5 Sources: U.S. Census Bureau - American Community Survey; Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 48 Page 60 All Housing Units Built by Decade City of Plymouth 9,000 8,000 7,000 6,000 - 5,000 c 4,000 3,000 - 2,000 - 1,000 Ln Ln - 0 <1940s 1940s 1950s 1960s 1970s 19805 19905 20005 Decade of Construction MAXFIELD RESEARCH AND CONSULTING 48 Page 60 HOUSING CHARACTERISTICS Housing Units by Structure and Occupancy or (Housing Stock by Structure Type) Table HC -4 shows the housing stock in the City of Plymouth by type of structure and tenure as of 2015. • The dominant housing type in Plymouth is the single-family detached home, representing an estimated 73.1% of all owner -occupied housing units and 7.5% of renter -occupied hous- ing units as of 2015. • About one-half of the renter -occupied housing units are within structures that have 50 or more units in Plymouth. • Most of the housing units with two or more units are renter -occupied. Owner -Occupied Housing Units by Mortgage Status Table HC -5 shows mortgage status and average values from the American Community Survey for 2015 (5 -Year). Mortgage status provides information on the cost of homeownership when analyzed in conjunction with mortgage payment data. A mortgage refers to all forms of debt where the property is pledged as security for repayment of debt. A first mortgage has priority claim over any other mortgage or if it is the only mortgage. A second (and sometimes third) mortgage is called a 'junior mortgage," a home equity line of credit (HELOC) would also fall into this category. Finally, a housing unit without a mortgage is owned free and clear and is debt free. MAXFIELD RESEARCH AND CONSULTING 49 Page 61 TABLE HC -4 HOUSING UNITS BY STRUCTURE & TENURE PLYMOUTH ANALYSIS AREA 2015 PLYMOUTH HENNEPIN COUNTY METRO AREA Owner- Renter- Owner- Renter- Owner- Renter - Units in Structure Occupied Pct. Occupied Pct. Occupied 247,800 Pct. 80.6% Occupied 23,400 Pct. 13% Occupied 632,367 Pct. 80.5% Occupied 50,228 Pct. 13.8% 1, detached 15,792 73.1% 651 7.5% 1, attached 4,427 20.5% 1,189 13.7% 30,109 9.8% 12,592 7% 93,048 11.8% 37,318 10.2% 2 56 0.3% 75 0.9% 4,012 1.3% 12,829 7% 6,727 0.9% 23,053 6.3% 3 to 4 237 1.1% 195 2.3% 2,669 0.9% 8,885 5% 5,410 0.7% 18,481 5.1% 5 to 9 220 1.0% 350 4.0% 2,588 0.8% 10,911 6% 5,610 0.7% 22,420 6.1% 10 to 19 45 0.2% 338 3.9% 2,076 0.7% 22,573 12% 3,355 0.4% 43,460 11.9% 20 to 49 236 1.1% 1,565 18.1% 4,620 1.5% 32,276 18% 7,767 1.0% 63,623 17.4% 50 or more 569 2.6% 4,273 49.4% 12,573 4.1% 58,794 32% 18,628 2.4% 104,067 28.5% Mobile home 30 0.1% 19 0.2% 910 0.3% 446 0% 12,395 1.6% 1,844 0.5% Boat, RV, van, etc. 0 0.0% 0 0.0% 38 0.0% 95 0% 105 0.0% 248 0.1% Total 21,612 100% 8,655 100% 307,395 100% 182,801 100% 1 785,412 100% 364,742 100% Sources: U.S. Census Bureau - American Community Survey; Maxfield Research & Consulting, LLC • About one-half of the renter -occupied housing units are within structures that have 50 or more units in Plymouth. • Most of the housing units with two or more units are renter -occupied. Owner -Occupied Housing Units by Mortgage Status Table HC -5 shows mortgage status and average values from the American Community Survey for 2015 (5 -Year). Mortgage status provides information on the cost of homeownership when analyzed in conjunction with mortgage payment data. A mortgage refers to all forms of debt where the property is pledged as security for repayment of debt. A first mortgage has priority claim over any other mortgage or if it is the only mortgage. A second (and sometimes third) mortgage is called a 'junior mortgage," a home equity line of credit (HELOC) would also fall into this category. Finally, a housing unit without a mortgage is owned free and clear and is debt free. MAXFIELD RESEARCH AND CONSULTING 49 Page 61 HOUSING CHARACTERISTICS • Approximately 70% of Plymouth homeowners have a mortgage. About 17% of homeown- ers with mortgages in Plymouth also have a second mortgage and/or home equity loan. These numbers are slightly lower compared to Hennepin County and the Metro Area where approximately 73% of homeowners in Hennepin County and in the Metro Area have a mort- gage. • The median value for homes with a mortgage for the City of Plymouth homeowners is ap- proximately $301,600, while the median value for homes without a mortgage are $15,700 lower at $285,900. TABLE HC -5 OWNER -OCCUPIED HOUSING UNITS BY MORTGAGE STATUS PLYMOUTH ANALYSIS AREA 2015 PLYMOUTH HENNEPIN CO. METRO AREA Mortgage Status No. Pct. No. Pct. Pct. Pct. Housing units without a mortgage 6,450 29.8 83,550 27.2 182,334 26.6 Housing units with a mortgage/debt 15,162 70.2 223,845 72.8 503,556 73.4 Second mortgage only 701 3.2 12,747 4.1 30,582 4.5 Home equity loan only 3,005 13.9 38,113 12.4 85,592 12.5 Both second mortgage and equity loan 61 0.3 1,731 0.6 4,192 0.6 No second mortgage or equity loan 11,395 52.7 171,254 55.7 383,190 55.9 Total 21,612 100.0F 307,395 100.0 685,890 100.0 Average Value by Mortgage Status Housing units with a mortgage $301,600 $232,200 $224,570 Housing units without a mortgage $285,900 $220,400 $209,350 Sources: U.S. Census Bureau - American Community Survey; Maxfield Research & Consuilting, LLC Housing Units by Occupancy Status & Tenure Tenure is a key variable that analyzes the propensity for householders to rent or own their housing unit. Tenure is an integral statistic used by numerous governmental agencies and pri- vate sector industries to assess neighborhood stability. The Follow are key points from Table HC -6: • The City of Plymouth had a larger portion (68%) of the City's housing stock devoted to owner occupied units in 2015 than Hennepin County (59%) and the Metro Area (65%). • Approximately 27% of housing units in the City of Plymouth were renter occupied in the 2015, compared to a moderately higher percentage in Hennepin County (35%) and the Metro Area (30%). MAXFIELD RESEARCH AND CONSULTING 50 Page 62 HOUSING CHARACTERISTICS About 4.4% of Plymouth's housing stock was vacant in 2010 and decreased to 4.1% in 2015. It is important to note, however, that the Census's definition of vacant housing units in- cludes: units that have been rented or sold, but not yet occupied, seasonal housing (vaca- tion or second homes), housing for migrant workers, and even boarded -up housing. Thus, the U.S. Census vacancy figures are not always a true indicator of adequate housing availa- ble for new households wishing to move into the area. MAXFIELD RESEARCH AND CONSULTING 51 Page 63 TABLE HC -6 HOUSING UNITS BY OCCUPANCY STATUS & TENURE PLYMOUTH ANALYSIS AREA 2010 & 2015 Wil kTA •CO. METRO AREA Year/Occupancy No. Pct. No. Pct. Pct, Pct. 2010 Owner Occupied 20,756 69.2 306,121 60.1 782,475 65.9 Renter Occupied 7,907 26.4 169,792 33.3 335,274 28.2 Vacant 1,319 4.4 33,556 6.6 69,237 5.8 Total 29,982 100.0 509,469 100.0 1,186,986 100.0 2015 Owner Occupied 21,612 68.4 307,395 59.3 785,412 65.1 Renter Occupied 8,655 27.4 182,801 35.3 364,742 30.2 Vacant 1,308 4.1 28,136 5.4 56,584 4.7 Total 31,575 100.0 518,332 100.0 1,206,738 100.0 Sources: U.S. Census Bureau; Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 51 Page 63 HOUSING CHARACTERISTICS 0 City of Plymouth Residential Parcels by Total Assessed Parcel Value City of Maple Grove City of Wayzata City of Minnetonka Legend Single S TWo-family Properties - 399,999 Gr under 5100,000-5199,999 5200,000 -5299,999 5340,000 -5399,999 54 00, 0 0 0 - 5499,999 i $500,000-5749,999 - 3750,008-S999,999 - $1,000,000 or more [i Maxf RIIIrr, MAXFIELD RESEARCH AND CONSULTING Multi -family Properties [� $99,999 a u nder 5100,000 -5199,999 - 8200,000 - 5299,999 - $300,000-$399,999 - 5400,000-3499,999 - 5500,000 - 5749,999 - 3750,000 - 5999,999 - £1,000,000 or more 0 CL 0 z a 0 0 City of St. Louis Park Nan -Residential Parcels Water 0 9 2 'files 52 Page 64 HOUSING CHARACTERISTICS 0 a C Q 0 A6 City of Plymouth Residential Parcels by Year Built City of Maple Gro,, e .7t. City of Wayzata Legend = Vacant No Year Built r iMaxfielResearch & in MAXFIELD RESEARCH AND CONSULTING P 7jr City of Minnetonka m CL P 3r Z A: i. d City of 5t LOUiSPark water Residential Parcels Year Built 1961-1970 - Priorto 1900 1971 -1980 1901-1920 1981-1990 1921 -1940 1991 - 2000 1941 - 1950 2001 -2010 1951 -1960 2011 -2017 0 1 2 Miles 53 Page 65 \ `k 11 L'i FTI t M- C: HOUSING CHARACTERISTICS Renter -Occupied Units by Contract Rent Table HC -7 presents information on the monthly housing costs for renters called contract rent (also known as asking rent). Contract rent is the monthly rent agreed to regardless of any utili- ties, furnishings, fees, or services that may be included. • The median contract rent in Plymouth was $1,057 and $874 in Hennepin County. Based on a 30% allocation of income to housing, a household in Plymouth would need an income of about $42,280 to afford an average monthly rent of $1,057. • Approximately 56% of Plymouth renters have monthly rents over $1,000, 37% of renters paying between $500 and $999, 4.8% of renters pay less than $500. • Within Hennepin County, nearly half of renters (49.7%) paid a contract rent between $500 and $999, while just over a third of renters (35.9%) paid a contract rent above $1,000. The remaining renters who paid cash rent in Hennepin County consist of renters who paid a con- tract rent less than $500 (12.2%). MAXFIELD RESEARCH AND CONSULTING 55 Page 67 TABLE HC -7 RENTER -OCCUPIED UNITS BY CONTRACT RENT PLYMOUTH ANALYSIS AREA 2015 PLYMOUTH HENNEPIN CO. METRO AREA Contract Rent No. Pct. No. Pct. Pct. Pct. No Cash Rent 193 2.2 3,979 2.2 9,618 2.6 Cash Rent 8,462 97.8 178,822 97.8 355,124 97.4 $0 to $249 143 1.7 11,121 6.1 20,313 5.6 $250-$499 275 3.2 11,119 6.1 23,675 6.5 $500-$749 707 8.2 38,975 21.3 79,666 21.8 $750-$999 2,505 28.9 51,905 28.4 107,773 29.5 $1,000-$1,500 3,910 45.2 47,983 26.2 93,061 25.5 $1,500+ 922 10.7 17,719 9.7 30,636 8.4 Total 8,655 100.0 182,801 100.0 364,742 100.0 Median Contract Rent $1,057 $874 $864 Sources: U.S. Census Bureau - American Community Survey; Maxfield Research & Consulting, LLC. MAXFIELD RESEARCH AND CONSULTING 55 Page 67 HOUSING CHARACTERISTICS Housing Characteristics Comparison Table HC -8, on the following page, provides a comparison on various housing characteristics in Plymouth compared to neighboring peer cities in the Metro Area. TABLE HC -8 HOUSING CHARACTERISTICS COMPARISION PLYMOUTH ANALYSIS AREA 21,612 8,655 $1,057 3.2% $1,176 1,511 $325,000 $372,849 15,162 $297,400 878 1,926 2,804 17,776 6,643 $1,104 2.2% $1,212 1,175 $308,500 $357,670 13,534 $303,600 331 508 839 15,327 5,554 $1,126 3.3% $1,378 1,004 $435,010 $529,736 10,173 $403,000 533 1,523 2,056 6,851 2,054 $1,036 1.6% $1,288 457 $290,275 $343,493 4,627 $265,300 39 705 744 21,019 3,885 $1,188 3.6% $1,312 1,462 $256,700 $292,793 16,674 $248,000 1,416 2,173 3,589 1,735 119 $1,207 N/A N/A 129 $541,250 $622,633 1,318 $607,200 79 573 652 15,995 6,681 $1,082 2.3% $1,263 1,018 $307,350 $355,936 11,015 $289,300 329 1,087 1,416 12,642 9,872 $966 2.2% $1,229 1,011 $245,000 $272,848 9,287 $236,900 504 1,410 1,914 Owner Units (2015) Renter Units (2015) Median Contract Rent (2015) Vacancy Rate (6/2017)* Average Rent (6/2017)* Resales (2016) Median Resale Price (2016) Average Resale Price (2016) Mortgage Status - Housing Units with a Mortgage (2015) Median Home Value (2015) Residential Building Permits 2007-2011 2012-2016 2007 - 2016 Total *Vacancy Rate &Average Rent for Maple Grove incorporates vacancy rates and rents from Osseo & Rogers Source: U.S. Census Bureau; ESRI; Marquette Advisors; Met Council; Northstar MLS; Maxfield Research, Inc. MAXFIELD RESEARCH AND CONSULTING 56 Page 68 HOUSING AFFORDABILITY Introduction Affordable housing is a term that has various definitions according to different people and is a product of supply and demand. According to the U.S. Department of Housing and Urban Devel- opment (HUD), the definition of affordability is for a household to pay no more than 30% of its annual income on housing (including utilities). Families who pay more than 30% of their in- come for housing (either rent or mortgage) are considered cost burdened and may have diffi- culty affording necessities such as food, clothing, transportation and medical care. Generally, housing that is income -restricted to households earning at or below 80% of Area Me- dian Income (AMI) is considered affordable. However, many individual properties have income restrictions set anywhere from 30% to 80% of AMI. Rent is not based on income but instead is a contract amount that is affordable to households within the specific income restriction seg- ment. Moderate -income housing, often referred to as "workforce housing," refers to both rental and ownership housing. Hence the definition is broadly defined as housing that is in- come -restricted to households earning between 50% and 120% AMI. Figure 1 below summa- rizes income ranges by definition. FIGURE 1 AREA MEDIAN INCOME (AMI) DEFINITIONS Definition Extremely Low Income 0% - 30% Very Low Income 31% - 50% Low Income 51% - 80% Moderate Income 80% - 120% Note: Hennepin County 4 -person AMI = $90,400 (2017) Rent and Income Limits Table HA -1 shows the maximum allowable incomes by household size to qualify for affordable housing and maximum gross rents that can be charged by bedroom size in Hennepin County. These incomes are published and revised annually by the Department of Housing and Urban Development (HUD) and also published separately by the Minnesota Housing Finance Agency based on the date the project was placed into service. Fair market rent is the amount needed to pay gross monthly rent at modest rental housing in a given area. This table is used as a basis for determining the payment standard amount used to calculate the maximum monthly subsidy for families at financially assisted housing. MAXFIELD RESEARCH AND CONSULTING 57 Page 69 HOUSING AFFORDABILITY Sources: MHFA, HUD, Novogradac, Maxfield Research and Consulting LLC Table HA -2 shows the maximum rents by household size and AMI based on income limits illus- trated in Table HA -1. The rents on Table HA -2 are based on HUD's allocation that monthly rents should not exceed 30% of income. In addition, the table reflects maximum household size based on HUD guidelines of number of persons per unit. For each additional bedroom, the maximum household size increases by two persons. MAXFIELD RESEARCH AND CONSULTING 58 Page 70 TABLE HA -1 MHFA/HUD INCOME AND RENT LIMITS HENNEPIN COUNTY- 2017 EFF 16R 26R 36R Income Limits by Household Size 30% of median $474 $543 1 pph 2 pph 3 pph 4 pph 5 pph 6 pph 7 pph 8 pph 30% of median $18,990 $21,720 $24,420 $27,120 $29,310 $31,470 $33,630 $35,820 50% of median $31,650 $36,200 $40,700 $45,200 $48,850 $52,450 $56,050 $59,700 60% of median $37,980 $43,440 $48,840 $54,240 $58,620 $62,940 $67,260 $71,640 80% of median $50,640 $57,920 $65,120 $72,320 $78,160 $83,920 $89,680 $95,520 100% of median $63,300 $72,400 $81,400 $90,400 $97,700 $104,900 $112,100 $119,400 120% of median $75,960 $86,880 $97,680 $108,480 $117,240 $125,880 $134,520 $143,280 Sources: MHFA, HUD, Novogradac, Maxfield Research and Consulting LLC Table HA -2 shows the maximum rents by household size and AMI based on income limits illus- trated in Table HA -1. The rents on Table HA -2 are based on HUD's allocation that monthly rents should not exceed 30% of income. In addition, the table reflects maximum household size based on HUD guidelines of number of persons per unit. For each additional bedroom, the maximum household size increases by two persons. MAXFIELD RESEARCH AND CONSULTING 58 Page 70 Maximum Gross Rent EFF 16R 26R 36R 46R 30% of median $474 $543 $610 $678 $732 50% of median $791 $905 $1,017 $1,130 $1,221 60% of median $949 $1,086 $1,221 $1,356 $1,465 80% of median $1,266 $1,448 $1,628 $1,808 $1,954 100% of median $1,582 $1,810 $2,035 $2,260 $2,442 120% of median $1,899 $2,172 $2,442 $2,712 $2,931 Fair Market Rent EFF 16R 2BR 3BR 4BR Fair Market Rent $699 $862 $1,086 $1,538 $1,799 Sources: MHFA, HUD, Novogradac, Maxfield Research and Consulting LLC Table HA -2 shows the maximum rents by household size and AMI based on income limits illus- trated in Table HA -1. The rents on Table HA -2 are based on HUD's allocation that monthly rents should not exceed 30% of income. In addition, the table reflects maximum household size based on HUD guidelines of number of persons per unit. For each additional bedroom, the maximum household size increases by two persons. MAXFIELD RESEARCH AND CONSULTING 58 Page 70 HOUSING AFFORDABILITY TABLE HA -2 MAXIMUM RENT BASED ON HOUSEHOLD SIZE AND AREA MEDIAN INCOME HENNEPIN COUNTY - 2017 HouseholdMaximum Rent Based on of Income) HHD Size 30% 50% Min Max Min. Max. Min. Max. .0 Min. Max. Min. :0 Max. Min. 00 Max. Min. Max. Studio 1 1 $475 - $475 $791 - $791 $950 - $950 $1,266 - $1,266 $1,583 - $1,583 $1,899 - $1,899 1BR 1 2 $475 $543 $791 $905 $950 $1,086 $1,266 $1,448 $1,583 $1,810 $1,899 $2,172 2BR 2 4 $543 $678 $905 $1,130 $1,086 $1,356 $1,448 $1,808 $1,810 $2,260 $2,172 $2,712 3BR 3 6 $611 $787 $1,018 $1,311 $1,221 $1,574 $1,628 $2,098 $2,035 $2,623 $2,442 $3,147 413R 4 8 $678 $896 $1,130 $1,493 $1,356 $1,791 $1,808 $2,388 $2,260 $2,985 $2,712 $3,582 1 One -bedroom plus den and two-bedroom plus den units are classified as 113R and 2BR units, respectively. To be classified as a bedroom, a den must have a window and closet. Note: 4 -person Hennepin County AMI is $90,400 (2017) Sources: HUD, Novogradac, Maxfield Research and Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 59 Page 71 HOUSING AFFORDABILITY Housing Cost Burden Table HA -3 shows the number and percentage of owner and renter households in Minnesota, Hennepin County, the Twin Cities Metro Area, and Plymouth that pay 30% or more of their gross income for housing. This information was compiled from the American Community Sur- vey 2015 estimates. This information is different than the 2000 Census which separated house- holds that paid 35% or more in housing costs. As such, the information presented in the tables may be overstated in terms of households that may be "cost burdened." The Federal standard for affordability is 30% of income for housing costs. Without a separate break out for house- holds that pay 35% or more, there are likely a number of households that elect to pay slightly more than 30% of their gross income to select the housing that they choose. Moderately cost - burdened is defined as households paying between 30% and 50% of their income to housing; while severely cost -burdened is defined as households paying more than 50% of their income for housing. Higher -income households that are cost -burdened may have the option of moving to lower priced housing, but lower-income households often do not. The figures focus on owner house- holds with incomes below $50,000 and renter households with incomes below $35,000. Key findings from Table HA -3 follow. In Plymouth, 19.6% of owner households and 42.8% of renter households are considered cost burdened. Plymouth is slightly less cost burdened for owner households than the Twin Cities Metro Area (22.7%), Hennepin County (23.5%), and the State of Minnesota (22.1%). Plymouth is also slightly less cost burdened for renter households than the Twin Cities Metro Area (48.5%), Hennepin County (47.9%), and the State of Minnesota (48.2%). • Among owner households earning less than $50,000, 57.8% were cost burdened in Plym- outh. This is higher than both the Twin Cities Metro Area (57.7%) and the State of Minne- sota (50.4%), but lower than Hennepin County (60.4%). • Approximately 93.8% of Plymouth renter households earning less than $35,000 were cost burdened which is significantly higher than the Twin Cities Metro Area (82.3%), Hennepin County (82.3%) and the State of Minnesota (77.7%). The median contract rent in Plymouth was $1,057 in 2015 and was significantly higher than the Twin Cities Metro Area ($855), Hennepin County ($874), and the State of Minnesota ($759). Plymouth's median contract rent was roughly 21% higher than that of Hennepin County. MAXFIELD RESEARCH AND CONSULTING 60 Page 72 HOUSING AFFORDABILITY MAXFIELD RESEARCH AND CONSULTING 61 Page 73 TABLE HA -3 HOUSING COST BURDEN PLYMOUTH, METRO AREA, HENNEPIN COUNTY, MINNESOTA 2015 Owner Households All Owner Households 21,612 896,777 307,395 1,522,618 Cost Burden 30% or greater 4,230 19.6% 202,714 22.7% 71,961 23.5% 334,738 22.1% Owner Households w/ incomes <$50,000 4,450 214,911 74,843 450,483 Cost Burden 30% or greater 2,528 57.8% 121,783 57.7% 44,329 60.4% 223,625 50.4% Renter Households All Renter Households 8,655 389,982 182,801 602,127 Cost Burden 30% or greater 3,594 42.8% 181,389 48.5% 84,579 47.9% 272,894 48.2% Renter Households w/ incomes <$35,000 2,718 186,890 86,602 316,969 Cost Burden 30% or greater 2,395 93.8% 145,084 82.3% 67,661 82.3% 228,441 77.7% Median Contract Rent' $1,057 $855 $874 $759 Median Contract Rent 2015 Note: Calculations exclude households not computed. Sources: American Community Survey 2015 estimates; Maxfield Research and Consulting LLC MAXFIELD RESEARCH AND CONSULTING 61 Page 73 HOUSING AFFORDABILITY Housing Vouchers In addition to subsidized apartments, "tenant -based" subsidies like Housing Choice Vouchers, can help lower income households afford market -rate rental housing. The tenant -based sub- sidy is funded by the Department of Housing and Urban Development (HUD), and is managed by the City of Plymouth HRA. Under the Housing Choice Voucher program (also referred to as Section 8) qualified households are issued a voucher that the household can take to an apart- ment that has rent levels with Payment Standards. The household then pays approximately 30% of their Adjusted Gross Income (AGI) for rent and utilities, and the Federal government pays the remainder of the rent to the landlord. The maximum income limit to be eligible for a Housing Choice Voucher is 50% Area Median Income (AMI) based on household size, as shown in Table HA -1. The following are key points about the Housing Choice Voucher Program in Plym- outh. • The Plymouth HRA manages roughly 375 Housing Choice rental assistance vouchers throughout the city. • The voucher program uses a payment standard which matches the cost of housing and utili- ties and households may use the housing voucher for units with rent that is below or above the payment standard. Housing Choice Vouchers can be used for several types of residences to include apartment rentals, single family housing rentals, duplexes, townhouses, and homeownership. Table HA -4 on the following page provides a breakdown of properties that offer subsidized units and includes the expiration date of the properties funding source as well as the percent- age of subsidized units at the select property. MAXFIELD RESEARCH AND CONSULTING 62 Page 74 HOUSING AFFORDABILITY MAXFIELD RESEARCH AND CONSULTING 63 Page 75 TABLE HA -4 HOUSING AFFORDABILITY EXPIRATION DATE CITY OF PLYMOUTH Name I Subsidized Units Total Units Pct. Subsidized I Exp. Date Funding At the Lake 61 204 30% 7/29/2019 Housing Revenue Bonds The Axis 16 161 10% 12/31/2038 TIF/MN DEED/Met Council Basset Creek Commons (senior housing) 46 46 100% 2039 TIF/HUD Currents (Harbor Lane) 64 326 20% 2/15/2026 Housing Revenue Bonds Kimberly Meadows 39 39 100% 10/8/2018 Project Based Section 8/HUD/MHFA Lakeview Commons 62 62 100% 7/1/2025 LIHTC Lancaster Village 32 160 20% 9/15/2031 Bonds Mission Oaks 28 28 100% 12/31/2018 Project Based Section 8/HUD Parkside Apartments 21 211 10% 4/15/2033 Revenue Bonds Shenandoah Woods Apartments 46 64 72% 10/26/2024 HRA/Hennepin Co/FHF/MHFA Stone Creek Village 34 132 26% 4/1/2038 TIF/Met Council/FHF/LIHTC/Hennepin County Vicksburg Commons 50 50 100% 9/30/2041 TIF/Section 8/Met Council West View Estates 67 67 100% 6/20/2041 TIF/Section 8/Met Council Willow Woods 39 40 98% 12/1/2035 HRA Loan/Project Based section 8 HRA OWNED Plymouth Towne Square 99 99 100% N/A GO Bonds Vicksburg Crossing 96 96 100% N/A GO Bonds Sources: City of Plymouth; Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 63 Page 75 HOUSING AFFORDABILITY Housing Costs as Percentage of Household Income Housing costs are generally considered affordable at 30% of a households adjusted gross in- come. Table HA -5 on the following page illustrates key housing metrics based on housing costs and household incomes in Plymouth. The table estimates the percentage of Plymouth house- holders that can afford rental housing based on a 30% allocation of income to housing. Housing costs are based on the Plymouth average. The housing affordability calculations assume the following: Rental Housing ■ Background check on tenant to ensure credit history ■ 30% allocation of income ■ Renter household income per 2015 ACS • The median income of all Plymouth households in 2017 was about $96,274. However, the median income varies by tenure. According to the 2015 American Community Survey, the median income of a homeowner is $107,396 compared to $52,043 for renters. About 83% of existing renter households can afford to rent a one -bedroom unit in Plymouth ($950/month). The percentage of renter income -qualified households decreases to 62% that can afford an existing three-bedroom unit ($1,850/month). After adjusting for new construction rental housing, the percentage of renters that are income -qualified decreases. About 75% of renters can afford a new market rate one -bedroom unit while 44% can afford a new three-bedroom unit. MAXFIELD RESEARCH AND CONSULTING 64 Page 76 HOUSING AFFORDABILITY MAXFIELD RESEARCH AND CONSULTING 65 Page 77 TABLE HA -5 PLYMOUTH HOUSING AFFORDABILITY - BASED ON HOUSEHOLD INCOME CITY OF PLYMOUTH Rental (Market Rate) Existing Rental 1BR 2BR 3BR 1BR 2BR 3BR Monthly Rent $950 $1,300 $1,850 $1,300 $2,000 $2,800 Annual Rent $11,400 $15,600 $22,200 $15,600 $24,000 $33,600 Housing Costs as % of Income 30% 30% 30% 30% 30% 30% Minimum Income Required $38,000 $52,000 $74,000 $52,000 $80,000 $112,000 Pct. of ALL Plymouth HHDS who can afford' 83.5% 74.8% 62.4% 74.8% 58.9% 43.7% No. of Plymouth HHDS who can afford' 25,262 22,652 18,898 22,652 17,817 13,221 Pct. of Plymouth renter HHDs who can afford 65.4% 65.4% 56.8% 46.8% 25.9% 13.2% No. of Plymouth renter HHDs who can afford 5,659 5,659 4,920 4,050 2,245 1,142 No. of Plymouth renter HHDS who cannot afford 2,996 2,996 3,735 4,605 6,410 7,513 1 Based on 2017 household income for ALL households Z Based on 2015 ACS household income by tenure (i.e. owner and renter incomes. Owner incomes = $107,396 vs. renter incomes = $52,043) Source: Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 65 Page 77 RENTAL MARKET ANALYSIS Introduction Maxfield Research and Consulting LLC identified and surveyed larger rental properties of 25 or more units in Plymouth. In addition, interviews were conducted with rental housing manage- ment firms, and others in the community familiar with Plymouth's' rental housing stock. For purposes of our analysis, rental properties are classified rental projects into two groups, general occupancy and senior (age -restricted). All senior properties are included in the Senior Housing Market Analysis section of this report. The general occupancy rental properties are di- vided into three groups: market rate (those without income restrictions); affordable or shallow - subsidy housing (those receiving tax credits or another type of shallow -subsidy and where there is a quoted rent for the unit and a maximum income that cannot be exceeded by the tenant); and subsidized or deep -subsidy properties (those with income restrictions at 30% or less of AMI where rental rates are based on 30% of their gross adjusted income. Overview of Rental Market Conditions Maxfield Research utilized data from the American Community Survey (ACS) and Marquette Ad- visors Apartment Trends report for Minnesota, the Twin Cities Metro Area, Hennepin County and Plymouth to summarize rental market conditions in the Plymouth Analysis Area. The data from Marquette Advisors is shown for the 4th Quarter of 2007 through 4th Quarter of 2016, while the ACS data is 2011— 2015. ACS includes all rental units, regardless of structure size. The following are key points concerning Plymouth's rental conditions. The equilibrium vacancy rate for rental housing is considered to be 5.0%. This allows for normal turnover and an adequate supply of alternatives for prospective renters. During the fourth quarter of 2016, the vacancy rate was 3% in Plymouth overall, with the highest va- cancies in two-bedroom (3.3%) and one -bedroom (3%) units. • Vacancy rates were lowest for studio (1.6%), two-bedroom with den (1.6%), and one -bed- room with den (1.8%) units in Plymouth. Between the fourth quarter 2007 and 2016, the average rents for a studio unit increased 20.7%, 10.7% for a one -bedroom, and 14.5% for a two-bedroom. MAXFIELD RESEARCH AND CONSULTING 66 Page 78 RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING 67 Page 79 TABLE R-1 AVERAGE RENTS/VACANCIES TRENDS CITY OF PLYMOUTH 4th Quarter 2007-2016 1 BR 2 BR Total Studio 1 BR w/ Den 2 BR w/ Den 3 BR Units 5,598 128 1,918 218 2,868 128 338 No. Vacant 170 2 58 4 96 2 8 Avg. Rent $1,166 $857 $1,000 $1,136 $1,234 $1,475 $1,541 Vacancy 3.0% 1.6% 3.0% 1.8% 3.3% 1.6% 2.4% Units 5,661 116 1,852 218 3,016 121 338 No. Vacant 189 4 53 4 121 5 2 Avg. Rent $1,127 $831 $960 $1,124 $1,184 $1,426 $1,523 Vacancy 3.3% 3.4% 2.9% 1.8% 4.0% 4.1% 0.6% Units 5,789 128 1,960 218 3,018 127 338 No. Vacant 226 2 49 4 143 8 20 Avg. Rent $1,111 $807 $942 $1,122 $1,178 $1,398 $1,498 Vacancy 3.9% 1.6% 2.5% 1.8% 4.7% 6.3% 5.9% Units 5,658 128 1,979 218 2,884 111 338 No. Vacant 193 1 63 6 109 7 7 Avg. Rent $1,087 $783 $927 $1,113 $1,150 $1,336 $1,498 Vacancy 3.4% 0.8% 3.2% 2.8% 3.8% 6.3% 2.1% Units 5,423 127 1,834 218 2,747 111 386 No. Vacant 225 3 55 4 138 10 15 Avg. Rent $1,102 $748 $950 $1,114 $1,161 $1,386 $1,434 Vacancy 4.1% 2.4% 3.0% 1.8% 5.0% 9.0% 3.9% Units 4,497 128 1,608 206 2,169 111 275 No. Vacant 189 3 73 6 93 8 6 Avg. Rent $1,036 $728 $897 $1,061 $1,091 $1,359 $1,408 Vacancy 4.2% 2.3% 4.5% 2.9% 4.3% 7.2% 2.2% Units 5,248 98 1,811 206 2,671 111 351 ' No. Vacant 267 5 68 15 147 14 18 Avg. Rent $1,053 $717 $908 $1,048 $1,109 $1,403 $1,356 Vacancy 5.1% 5.1% 3.8% 7.3% 5.5% 12.6% 5.1% Units 5,269 125 1,851 218 2,648 92 335 No. Vacant 389 13 139 16 200 11 10 Avg. Rent $1,055 $742 $915 $1,096 $1,110 $1,440 $1,374 Vacancy 7.4% 10.4% 7.5% 7.3% 7.6% 12.0% 3.0% Units 6,277 121 2,094 218 3,292 104 448 No. Vacant 351 2 85 14 212 14 24 Avg. Rent $1,044 $708 $904 $1,070 $1,088 $1,407 $1,372 Vacancy 5.6% 1.7% 4.1% 6.4% 6.4% 13.5% 5.4% Units 5,856 120 2,017 218 2,997 104 400 No. Vacant 248 16 44 6 168 6 8 Avg. Rent $1,112 $710 $903 $1,091 $1,078 $1,481 $1,411 Vacancy 4.2% 13.2% 2.2% 2.8% 5.6% 5.6% 2.1% Units -258 8 -99 0 -129 24 -62 No. Vacant -78 -14 14 -2 -72 -4 0 Avg.Rent $54 $147 $97 $45 $156 -$6 $130 Vacancy -1.2% -11.6% 0.8% -1.0% -2.3% -4.0% 0.3% Sources: Marquette Advisors; Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 67 Page 79 RENTAL MARKET ANALYSIS • The following chart illustrates how the Plymouth general occupancy apartment market re- covered rapidly after struggling with higher vacancy rates between fourth quarter of 2008 and 2010. • Plymouth has much higher rents compared to Hennepin County and the State of Minnesota. The median gross rent in Plymouth (estimated as of 2015 ACS) was $1,143 per month, which was 20% higher than the median monthly rent of $951 in Hennepin County and 35% higher than the median monthly rent of $848 in Minnesota. • Monthly gross rents in Plymouth ranged from less than $300 to more than $1,500 with approximately 16% renting for $1,500 or more per month. Over 49% had gross monthly rents between $1,000 and $1,499, 23% had rents between $750 and $999, while just over 5% had rents between $500 and $749. Only 3% of renters had rents of less than $500. • By comparison, an estimated 14% in the Hennepin County had gross monthly rents that were $1,500 or more. Also, 30% had gross monthly rents from $1,000 to $1,500, 27% had rents between $750 and $999 and 16% had rents between $500 and $749. In addition, an estimated 10% had rents of less than $500. MAXFIELD RESEARCH AND CONSULTING 68 Page 80 Avg. Rents & Vacancy Rate 2007 to 2016 Plymouth MN $1,200 8.0% 7.0% $1,150 6.0 $1,100 _ 5.0% ami 4.0% $1,050 3.0 2.0% $1,000 — — 1.0% $950 - 0.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Year Avg. Rent --*--Pct. Vacant Ma rquette Advisors • Plymouth has much higher rents compared to Hennepin County and the State of Minnesota. The median gross rent in Plymouth (estimated as of 2015 ACS) was $1,143 per month, which was 20% higher than the median monthly rent of $951 in Hennepin County and 35% higher than the median monthly rent of $848 in Minnesota. • Monthly gross rents in Plymouth ranged from less than $300 to more than $1,500 with approximately 16% renting for $1,500 or more per month. Over 49% had gross monthly rents between $1,000 and $1,499, 23% had rents between $750 and $999, while just over 5% had rents between $500 and $749. Only 3% of renters had rents of less than $500. • By comparison, an estimated 14% in the Hennepin County had gross monthly rents that were $1,500 or more. Also, 30% had gross monthly rents from $1,000 to $1,500, 27% had rents between $750 and $999 and 16% had rents between $500 and $749. In addition, an estimated 10% had rents of less than $500. MAXFIELD RESEARCH AND CONSULTING 68 Page 80 RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING 69 Page 81 R-2 BEDROOMS BY GROSS RENT, RENTER -OCCUPIED HOUSING UNITS PLYMOUTH ANALYSIS AREA 2015 Total: 8,655 100% 182,801100%100% Median Gross Rent $1,143 $951 $848 No Bedroom 333 4% 12,192 7% 5% Less than $300 0 0% 1,393 1% 1% $300 to $499 0 0% 1,342 1% 1% $500 to $749 126 1% 5,517 3% 2% $750 to $999 129 1% 2,377 1% 1% $1,000 to $1,499 78 1% 1,066 1% 0% $1,500 or more 0 0% 342 0% 0% No cash rent 0 0% 155 0% 0% 1 Bedroom 2,641 31% 72,588 40% 33% Less than $300 43 0% 7,162 4% 4% $300 to $499 94 1% 3,623 2% 4% $500 to $749 96 1% 18,031 10% 10% $750 to $999 1,050 12% 26,223 14% 9% $1,000 to $1,499 1,209 14% 13,251 7% 4% $1,500 or more 140 2% 3,758 2% 1% No cash rent 9 0% 540 0% 0% 2 Bedrooms 4,207 49% 64,026 35% 38% Less than $300 68 1% 2,173 1% 1% $300 to $499 15 0% 1,655 1% 2% $500 to $749 202 2% 3,691 2% 7% $750 to $999 792 9% 18,235 10% 12% $1,000 to $1,499 2,577 30% 28,507 16% 11% $1,500 or more 478 6% 8,430 5% 3% No cash rent 75 1% 1,335 1% 1% 3 or More Bedrooms 1,474 17% 33,995 19% 24% Less than $300 15 0% 752 0% 1% $300 to $499 34 0% 1,099 1% 1% $500 to $749 77 1% 2,297 1% 3% $750 to $999 43 0% 2,725 1% 4% $1,000 to $1,499 427 5% 11,771 6% 8% $1,500 or more 769 9% 13,402 7% 6% No cash rent 109 1% 1,949 1% 3% Sources: 2011-2015 American Community Survey; Maxfield Research and Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 69 Page 81 RENTAL MARKET ANALYSIS Renter -Occupied Housing Units by Number of Bedrooms Plymouth MN 100% ® - 90% - 80% 70% 60% - ■ 3BR+ 50% 2BR 40% ■ 1BR 30% , ■ No BR 20% 10% 0% Plymouth Hennepin Co. MN U.S. Census General -Occupancy Rental Properties Our research of Plymouth's general occupancy rental market included a survey of 44 market rate, affordable, and subsidized apartment properties (25 units and larger) in July & August 2017. These properties represent a combined total of 6,972 units, including 6,372 market rate units, 366 affordable units, and 234 subsidized units. Although we were able to contact and obtain up-to-date information on the majority of rental properties, there were a few projects that chose not to participate in this survey or were unable to reach and had to rely on information from third party sources. At the time of our survey, 115 market rate units were vacant, resulting in an overall vacancy rate of 1.6% for all units. The combined overall vacancy rate is well below the industry stand- ard of 5% vacancy for a stabilized rental market rate which promotes competitive rates, ensures adequate choice, and allows for sufficient unit turnover. Table R-3 summarizes year built of Plymouth general occupancy projects. Table R-4 summarizes information on market rate, affordable, and subsidized general occupancy projects. Table R-5 summarizes available unit types and rents among all general -occupancy housing developments. MAXFIELD RESEARCH AND CONSULTING 70 Page 82 RENTAL MARKET ANALYSIS TABLE R-3 GENERAL OCCUPANCY RENTAL DEVELOPMENT YEAR BUILT CITY OF PLYMOUTH August 2017 Property Name/Location Built Type Units The Axis 2016 MR/AFF 161 West View Estates 2012 AFF 67 Vicksburg Commons 2007 AFF 50 Stone Creek at Medicine Lake 2007 MR/AFF/SUB 132 Stoneleigh at the Reserve 2003 MR 361 The Quinn 2002 MR 301 Shadow Hills 2002 MR 322 Creekside Estates 2000 MR 204 Shenandoah Woods 1998 MR/AFF/SUB 64 Lakeview Commons 1995 AFF 62 Fern brook Townhomes 1993 MR 72 Lancaster Park 1991 MR 50 Bass Lake Hills 1990 MR 284 Vicksburg Village 1989 MR 370 Coachman Trails 1988 MR 156 Hummingbird Cove 1988 MR 74 Stonehill 1988 MR 224 Parkers Lake Apartments 1988 MR 248 Plymouth Square at 37th 1987 MR 160 Plymouth Ponds 1987 MR 200 Parkside at Medicine Lake 1986 MR/AFF/SUB 211 Summer Creek 1985 MR 72 Fox Forest Townhomes 1985 MR 160 Park Place Apartments 1985 MR 500 Medicine Lake Woods 1984 MR 17 Mission Oaks 1983 SUB 26 Kimberly Meadows 1980 SUB 39 Willow Wood Estates 1980 AFF 40 Oakwood 1978 MR 107 Willow Creek Apartments 1977 MR 245 Medicine Lake Apartments 1977 MR 81 Lancaster Village 1974 MR/SUB 160 Wellington Apartments 1973 MR 39 Plymouth Commons 1972 MR 212 At the Lake 1971 MR/AFF/SUB 204 Currents 1971 MR/SUB 326 Granite Woods 1971 MR 192 Manor Royal 1971 MR 132 Plymouth Pointe 1969 MR 96 South Shore 1969 MR 17 Countryside Estates 1968 MR 72 Four Season Estates 1968 MR 96 Four Seasons Villas 1967 MR 240 Plymouth Colony 1945 MR 126 Source: City of Plymouth; Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 71 Page 83 RENTAL MARKET ANALYSIS Plymouth General Occupancy Rental Units by Year Built 3,000 — 2,497 2,500 2,000 1,698 1,500 1,370 1,000 521 532 500 126 0 0 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010+ • Many of Plymouth's larger general occupancy rental housing were built post 1980. Approxi- mately 66% of all multifamily rental developments were built in 1980 or after. Market Rate • The newest market rate general occupancy rental housing project in Plymouth is the Axis Apartments, which came online in 2016 and has a total of 161 units, 145 being market rate while the remaining 16 being affordable units. Market rate rents average $1,644 a month or approximately $1.86 per square foot. • A total of 115 vacancies were found in market rate rental projects, resulting in a vacancy rate of 1.8% as of August 2017. Market rate rental vacancy stabilized equilibrium is consid- ered to be 5% to allow for unit turnover and property choice for renters. • Sizes for market rate units ranged from 418 square feet for a studio apartment at the Cur- rents Apartments to 1,780 square feet for a three-bedroom apartment at Bass Lake Hills Apartments. The average size of all market rate apartments in Plymouth is 962 square feet. • Average rent per square foot for market rate rentals is $1.29 with studios being the highest at $1.61 and two-bedroom and two-bedroom units being the lowest at $1.24 rent per square foot. MAXFIELD RESEARCH AND CONSULTING 72 Page 84 RENTAL MARKET ANALYSIS Affordable • There are nine general occupancy affordable properties in Plymouth with 366 total units. There were no vacant units as of August 2017. Typically, tax credit rental properties should be able to maintain vacancy rates of 3% or less in most housing markets. The lack of vacancies for tax credit housing units indicates a need for additional housing of this type. • Since 2007, three tax credit rental properties have come online, totaling 133. These three properties account for roughly 36% of Plymouth's affordable housing units. Subsidized • There are eight income -restricted properties deep subsidized projects in Plymouth with 234 total units. There were no vacant unit as of August 2017. • Typically, deep -subsidy rental properties should be able to maintain vacancy rates of 3% or less in most housing markets. Because there are no vacancies, there is pent-up demand for additional subsidized product type. MAXFIELD RESEARCH AND CONSULTING 73 Page 85 RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING 74 Page 86 TABLE R-4 SELECT GENERAL OCCUPANCY RENTAL DEVELOPMENT SURVEY PLYMOUTH August 2017 Year Units/ Monthly Rent per Accept Property Name/Location Built Vacant Unit Mix Unit Size Rent Square Foot Vouchers Amenities/Comments Stone Creek Apartments 2004 26 10 - 1BR 794 -827 30% of AGI n.m No Underground parking included, fitness center, car wash bay, gas grill, 1020 West Medicine Lake Dr 0 10 -2BR 1,074 - 1,536 30% of AGI n.m playground, patio/terrace, dishwasher, kitchen pantry, in unit washer & Dominium 0.0% 6 - 3BR 1,355 - 1,644 30% of AGI n.m dryer, outdoor hot -tub with heated deck Shenandoah Woods 1998 6 1 - IBR 598 30% of AGI n.m No On-site property manager, dishwasher, walk-in closets, heated 2205 Shenandoah Ln N 0 0.0% 4 -2BR 1 -3BR 8S1_880 1,049 - 1,171 30% of AGI 30% of AGI n.m n.m underground parking, BBQ area, subsidized, affordable, & market rate units offered Parkside at Medicine Lake 1986 21 8 - 1BR 770 -808 30% of AGI n.m No Outdoor pol, sauna, lounge, underground parking, laundry facilities, 12102 41st Ave N 0 13 -2BR 1,008 - 1,233 30% of AGI n.m two fitness centers, additional storage space, picnic area with grill, near StuartCo 0.0% walking/biking trail, dishwasher Mission Oaks 1983 26 18 - 2BR 920-994 30% of AGI n.m No Designed for families with children, common area laundry, playground, 11841 Old Rockford Rd 0 8 - 3BR 1,242 30% of AGI n.m nearby walking trails Tapestry Management 0.0% Kimberly Meadows 1980 39 19 - 2BR 920-994 30% of AGI n.m No Balcony, playground, high speed internet access, storage uits, on-site 17363 County Road 6 0 18 - 3BR 1,242 30% of AGI n.m property manager, flexible lease lengths Thies & Tolle Management 0.0% 2 - 4BR 1,450 30% of AGI n.m Lancaster Village 1974 32 15 - 1BR 700-750 30% of AGI n.m. No Clubhouse, fitness center, outdoor heated pool with sundeck, picnic 3610 Lancaster Ln N 0 17 - 2BR 900-950 30% of AGI n.m. area with grills, playground, surface & garage parking CSM Corporation 0.0% Currents 1971 64 48 - 1BR 518-818 30% of AGI n.m. No Outdoor & indoor pool, dry sauna, fitness center, outdoor courtyard, 3205 Harbor Ln N 0 16 - 2BR 1,150 30% of AGI n.m. picnic area with BBQ stations, multi -sport court, dog park, playground, Miramar Inc 0.0% tanning suite, coffee cafe, business center, DVD rentals, dry cleaning service At the Lake 1971 20 10 - IBR 750-750 30% of AGI n.m. No Grill & picnic area, laundry facility, tanning salon, dishwasher, balcony, 2500 Nathan Ln N 0 10 - 2BR 950-1,050 30% of AGI n.m. fitness center, playground, pool, sauna, basketball & volleyball court MN Apartment People 0.0% Subsidized Total 11111ff 234 0 0.0% MAXFIELD RESEARCH AND CONSULTING 74 Page 86 RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING 75 Page 87 Continued TABLE R-4 SELECT GENERAL OCCUPANCY RENTAL DEVELOPMENT SURVEY PLYMOUTH August 2017 Year Units/ Monthly Rent per Accept Property Name/Location Built Vacant Unit Mix Unit Size Rent Square Foot Vouchers Amenities/Comments Affordable Tax -Credit (Section 42) The Axis 2016 16 8 - 1BR 576-728 N/A N/A Yes Bike storage & fix -it station, pet wash, tv room, sundeck, gas grills, 350 Nathan Ln N 0 8 - 2BR 1,130 - 1,292 N/A N/A surface parking & undergound parking garage, fitness center, pool, in - Steven Scott Management 0.0% unit washer & dryer, ping pong table & bocce ball court, tax credit & West View Estates 2012 67 4 - 1BR 956 $764 $0.80 Yes Dishwasher, assigned parking, coffee bar, playground, walk-in closets, 6125 Vicksburg Ln N 0 38 - 2BR 1,122 $915 $0.82 balcony, laundry facilities Sand Companies 0.0% 25 - 3BR 1,444 $1,054 $0.73 Vicksburg Commons 2007 50 4 - 1BR N/A N/A N/A Yes One & two car attached garages, central air, in -unit washer and dryer, 6040 Shenandoah Ln N 0 20 - 2BR N/A N/A N/A community room, computer lab, playground, waitlist closed, no longer Commonbond Properties 0% 26 - 3BR N/A N/A N/A accepting applications at time of survey Stone Creek Apartments 2004 8 4 - 1BR 794-827 N/A N/A No Underground parking included, fitness center, car wash bay, gas grill, 1020 West Medicine Lake Dr 0 4 - 2BR 1,074 - 1,536 N/A N/A playground, patio/terrace, dishwasher, kitchen pantry, in unit washer & Dominium 0.0% dryer, outdoor hot -tub with heated deck Shenandoah Woods 1998 40 21 - 1BR 598 N/A N/A Yes On-site property manager, dishwasher, walk-in closets, heated 2205 Shenandoah Ln N 0 8 - 2BR 851-880 N/A N/A underground parking, BBQ area, subsidized, affordable, & market rate Hornig Companies 0% 11 - 3BR 1,049 - 1,171 N/A N/A units offered Lakeview Commons 1995 62 14 - 2B 1,040 $1,075 $1.03 Yes Dishwasher, garage parking, walk-in closets, playground, on-site 15235 18th Ave N 0 48 - 3B 1,320 $1,238 $0.94 manager, washer & dryer connections, nearby walking & biking trails Heartland Management 0.0% Parkside at Medicine Lake 1986 42 6 - Studio 560 N/A N/A No Outdoor pol, sauna, lounge, underground parking, laundry facilities, 12102 41st Ave N 0 9 - 1BR 770-808 N/A N/A two fitness centers, additional storage space, picnic area with grill, near StuartCo 0.0% 25 - 2BR 1,008 - 1,233 N/A N/A walking/biking trail, dishwasher 2 - 3BR 1,233 - 1,344 N/A N/A Willow Wood Estates 1980 40 36 - 3BR 1,108 30% of AGI n.m No On-site laundry facilities, patio/balcony, playground, clubhouse, storage 10850 South Shore Dr 0 4 - 4BR 1,283 30% of AGI n.m units, waiting list is closed and not accepting applications at time of Dominium Management 0.0% survey At the Lake 1971 41 4 - Studio 490-500 N/A N/A Yes Grill & picnic area, laundry facility, tanning salon, dishwasher, balcony, 2500 Nathan Ln N 0 22 - 1BR 750-750 N/A N/A fitness center, playground, pool, sauna, basketball & volleyball court MN Apartment People 0.0% 11 - 2BR 950-1,050 N/A N/A 4 - 3BR 1,200 - 1,200 N/A N/A Affordable Total OW 366 0.0% MAXFIELD RESEARCH AND CONSULTING 75 Page 87 RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING 76 Page 88 Continued TABLE R-4 SELECT GENERAL OCCUPANCY RENTAL DEVELOPMENT SURVEY PLYMOUTH August 2017 Year Units/ Monthly Rent per Accept Property Name/Location Built Vacant Unit Mix Unit Size Rent Square Foot Vouchers Amenities/Comments Market Rate The Axis 2016 145 87 - 1BR 576-728 $1,275 - $1,495 $2.05 - $2.21 No Bike storage & fix -it station, pet wash, tv room, sundeck, gas grills, 350 Nathan Ln N 9 54 - 2BR 1,130 - 1,292 $1,920 - $2,100 $1.63 - $1.70 surface parking & undergound parking garage, fitness center, pool, in - Steven Scott Management 6.2% 4 - 2BR/D 1,540 $2,350 $1.53 unit washer & dryer, ping pong table & bocce ball court, tax credit & market rate units offered Stone Creek Apartments 2004 98 16 - Studio 517 $1,100 - $1,200 $2.13 - $2.32 No Underground parking included, fitness center, car wash bay, gas grill, 1020 West Medicine Lake Dr 2 12 - IBR 794-827 $1,340 - $1,490 $1.69 - $1.88 playground, patio/terrace, dishwasher, kitchen pantry, in unit washer & Dominium 2.0% 16 - 1BR/D 1,095 - 1,107 $1,515 - $1,695 $1.38 - $1.55 dryer, outdoor hot -tub with heated deck 34 - 2BR 1,074 - 1,536 $1,405 - $2,350 $1.31 - $1.53 20 - 3BR 1,355 - 1,644 $1,900 - $2,540 $1.40 - $1.87 Stoneleigh at the Reserve 2003 361 21 - Studio 530 $1,120 $2.11 No 9 foot ceilings, business center, fitness center, pool, basketball & 5200 Annapolis Ln N 4 211 - 1BR 720-1,016 $1,200 - $1,280 $1.26 - $1.67 racquetball courts, balcony, walk-in closets, car wash bay, DVD rental, Weidner Apartment Homes 1.1% 42-1BR/D 1,033 $1,300 $1.26 heated parking garage, gas fireplces 63 - 2BR 1,092 - 1,158 $1,535 - $1,565 $1.35 - $1.41 24 - 2BR/D 1,376 $1,720 $1.25 Shadow Hills 2002 322 119 - 1BR 739-957 $1,156 -$1,326 $1.39 -$1.56 No Outdoor pool, picnic area with grills, playground, hot tub, party room, 4540 Nathan Ln N 0 18 - 1BR/D 957 $1,280 -$1,305 $1.34 -$1.36 DVD rentals, bussiness center, fitness center, theater room, Bigos Management 0.0% 130 - 2BR 1,069 - 1,223 $1,370 -$1,525 $1.25 -$1.28 undergound parking, in -unit washer & dryer, balcony, dishwasher, walk - 52 - 2BR/D 1,248 - 1,477 $1,500 -$1,629 $1.10 -$1.20 in closet, central air 3 - 3BR 1,525 $1,695 -$1,725 $1.11 -$1.13 The Quinn 2002 301 125 -1 BR 677-800 $1,084 -$2,805 $1.60 -$3.51 No Dog park, fitness center, game room, playground, outdoor pool & hot 6110 Quinwood Ln N 6 136 - 2 BR 990-1,187 $1,243 -$3,000 $1.26 -$2.53 tub, clubhouse, central air, gas fireplaces, in -unit washer & dryers, walk- GreyStor 2.0% 40 - 3 BR 1,417 $1,920 -$4,208 $1.35 -$2.97 in closets, patio/balconies, underground & surface parking Creekside Estates 2000 204 45 - IBR 719-840 $1,130 $1.57 -$1.35 No Picnic & BBQ area, additional storage units, walk-in closets, in -unit 200 Nathan Ln N 14 42 - 1BR/D 856-1,072 $1,460 $1.71 -$1.36 washer & dryer, car washing station, fitness center, business center, Steven Scott Management 6.9% 117 - 2BR 1,064 - 1,122 $1,335 - $1,520 $1.25 -$1.35 central air Shenandoah Woods 1998 18 6 - 1BR 598 $620 -$695 $1.04 -$1.16 Yes On-site property manager, dishwasher, walk-in closets, heated 2205 Shenandoah Ln N 0 8 -2BR 851 -880 $745 -$905 $0.88 -$1.06 underground parking, BBQ area, subsidized, affordable, & market rate Hornig Companies 0.0% 4 - 3BR 1,049 - 1,171 $970 - $1,130 $0.92 -$1.08 units offered Fernbrook Townhomes 1993 72 1 -2BR 950 $1,295 $1.36 No Pool, playground, gameroom, dishwasher, two car garage, balcony, 3900 Plymouth Boulevard 0 71 -3BR 1,200 $1,295 $1.08 near walking/bike trails, additional storage units Equity Residential 0.0% Lancaster Park 1991 50 6 - 1BR 825 $1,110 - $1,310 $1.35 - $1.59 No Dishwasher, in -unit washer & dryer, garage parking, oversized closets, 4015 Lancaster Ln N 0 44 -2BR 995-1,260 $1,310 - $1,610 $1.28 - $1.32 grills available, picnic area, near walking/bike trails Marathon Resources Inc 0.0% Bass Lake Hills 1990 284 246 -2BR 1,007 - 1,212 1,495 - 1,565 $1.29 - $1.48 No Playground, fitness center, lounge/community room, outdoor heated 5875 Teakwood Ln N 4 38 -3BR 1,487 - 1,780 1,800 - 1,930 $1.08 - $1.21 pool with sundeck, sport court, picnic area, attached garages, CSM Corporation 1.4% dishwasher, in -unit washer &dryer, patios MAXFIELD RESEARCH AND CONSULTING 76 Page 88 RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING 77 Page 89 Continued TABLE R-4 SELECT GENERAL OCCUPANCY RENTAL DEVELOPMENT SURVEY PLYMOUTH August 2017 Year Units/ Monthly Rent per Accept Property Name/Location Built Vacant Unit Mix Unit Size Rent Square Foot Vouchers Amenities/Comments Market Rate Vicksburg Village 1989 370 104 - 1BR 785 -822 $1,214 -$1,454 $1.55 -$1.77 No In -unit washer & dryer, car wash area, clubhouse, conference room, 15730 Rockford Road 13 198 - 2BR 1,042 $1,367 -$1,742 $1.31 -$1.51 patio/balcony, fitness center, heated underground garage, outdoor NA 3.5% 36 - 2BR/D 1,248 - 1,528 $2,229 -$2,294 $1.50 -$1.79 kitchen & firepit, sauna, flexible lease lengths, dog park 32 - 3611 1,367 - 1,521 $1,766 -$1,958 $1.29 -$1.29 Stonehill 1988 224 6 - Studio 540 $950 _$995 $1.76 -$1.84 No Billiard room, fitness center, indoor whirlpool, outdoor pool, party 3501 Xenium Ln N 0 90 - 1611 781-893 $1,160 -$1,225 $1.37 -$1.49 room, theater room, underground heated parking, car wash station, StuartCo 0.0% 110 - 2BR 1,084 - 1,260 $1,410 -$1,460 $1.16 -$1.30 balcony/patio, in -unit washer & dryer, central air 12 - 2BR/D 1,294 $1,595 -$1,665 $1.23 -$1.29 6 - 31311 1,447 $1,685 -$1,725 $1.16 - $1.19 Coachman Trails 1988 156 3 - Studio 545 $975 -$1,000 $1.79 -$1.83 No BBQ & picnic area, billiards room, community room, business center, 1405 Olive Ln N 2 42 - 11311 832-979 $1,100 -$1,175 $1.20 -$1.32 outdoor pool with sundeck, playground, two fitness centers, heated StuartCo 1.3% 6 - 1BR/D 1,159 $1,200 -$1,250 $1.04 -$1.08 underground parking, balcony 96 - 2BR 1,142 - 1,499 $1,310 - $1,560 $1.04 - $1.15 9 - 2BR/D 1,296 $1,495 -$1,550 $1.15 -$1.20 Parkers Lake Apartments 1988 248 74 - 1BR 870 -910 $1,318 -$1,569 $1.51 -$1.72 No Attached garage, business center, clubhouse, fitness center, BBQ 15100 18th Ave N 6 144 - 2BR 1,000 - 1,150 $1,299 -$1,926 $1.30 -$1.67 plyground, outdoor pool with sundeck, on-site management, Timberland Partners 2.4% 30 - 3BR 1,250 $1,784 -$2,389 $1.43 -$1.91 patio/balcony, dishwasher, fireplace, in -unit washer &dryer, walk-in closet Hummingbird Cove 1988 74 24 - 1BR 801 $950 - $1,000 $1.19 -$1.25 No BBQ car wash with vacuum, community room, fitness center, heated 10405 45th Ave N 0 48 - 2611 1,112 - 1,194 $1,060 -$1,185 $0.95 _$0.99 underground parking, pool, dishwasher, in -unit washer & dryer, Hornig Companies 0.0% 2 - 3BR 1,473 $1,500 - $1,600 $1.02 -$1.09 patio/balcony Plymouth Square at 37th 1987 160 80 - IBR 752-857 $1,150 -$1,765 $1.53 -$2.06 No Business center, fitness center, spa/hot tub, pool, tennis courts, 15300 37th Ave N 1 68 - 2611 1,003 - 1,238 $1,235 -$2,110 $1.23 -$1.70 dishwasher, additional storage, fireplace, in -unit washer & dryer Weidner Apartment Homes 0.6% 12 - 3BR 1,231 $1,615 -$2,310 $1.31 -$1.88 Plymouth Ponds 1987 200 60 - 1BR 788 $1,080 -$1,250 $1.37 -$1.59 Yes Outdoor pool, heated underground garage, car wash facility, 4545 Nathan Ln N 0 130 - 2BR 1,018 - 1,378 $1,090 -$1,575 $1.07 -$1.14 patio/balcony, BBQ in -unit washer &dryer, bicycle racks, flexible lease Thies & Tolle Management 0.0% 10 - 31311 $1,435 $1,610 - $1,710 $1.12 -$1.19 lengths, picnic area, dishwasher Parkside at Medicine Lake 1986 148 13 - Studio 560 $920 $1.64 No Outdoor pol, sauna, lounge, underground parking, laundry facilities, 12102 41st Ave N 6 44 - 1611 770 -808 $1,095 -$1,135 $1.40 -$1.42 two fitness centers, additional storage space, picnic area with grill, near StuortCo 4.1% 87 - 2BR 1,008 -1,233 $1,200 -$1,290 $1.19 -$1.28 walking/biking trail, dishwasher 4 - 3BR 1,233 - 1,344 $1,545 -$1,610 $1.20 - $1.25 Summer Creek 1985 72 21 - 1BR 742 -768 $1,000 -$1,145 $1.35 -$1.49 No Fitness center, sauna, pool, tennis court, near walking/bike trails, 3900 Plymouth Boulevard 1 45 - 2BR 976 -1,076 $1,000 -$1,295 $1.02 -$1.20 patio/balcony, dishwasher, additional storage space, in -unit washer & NA 1.4% 6 - 3BR 1,194 - 1,225 $1,245 -$1,495 $1.04 - $1.22 dryer, fireplace Fox Forest Townhomes 1985 160 80 - 2BR 1,008 -1,382 $1,620 -$1,715 $1.24 -$1.61 No Patio, in -unit washer & dryer, two -car garage, plyground, grill, boat 1798 Magnolia Ln N 5 80 - 3BR 1,434 $1,799 -$1,880 $1.25 -$1.31 docks, walk-in closet, dishwasher Park Avenue of Wayzata 3.1% Park Place Apartments 1985 500 120 - 1BR 958 $1,196 -$1,684 $1.25 -$1.76 No Dishwasher, clubhouse, fitness center, walk-in closet, central air, horse 14550 34th Avenue N 11 380 - 2611 1,144 - 1,308 $1,356 -$1,767 $1.19 -$1.35 shoes, two pools with sun deck, covered parking, business center, near Greystor 2.2% walking/biking trails MAXFIELD RESEARCH AND CONSULTING 77 Page 89 RENTAL MARKET ANALYSIS 11210 12th Ave N 17600 14th Ave Bigos Management Medicine Lake Apartments 1300 W Medicine Lake Dr Bigos Management Willow Creek Apartments 135 Nathan Lane N Bigos Management Lancaster Village 3610 Lancaster Ln N CSM Corporation Wellington Apartments 17210 County Road 6 NA Plymouth Commons 3301 Hwy 169 N Gary Brummer Management Currents 3205 Harbor Ln N Miramar Inc At the Lake 2500 Nathan Ln N MN Apartment People Manor Royal 3930 Lancaster Ln N Real Estate Equities Inc Granite Woods 3925 Landcaster Ln N Main Street Companies Year Units/ Built Vacant 1984 17 1 5.9% 1978 107 4 3.7% 1977 81 3 3.7% 1977 245 14 5.7% 1974 128 1 0.8% 1973 39 1 2.6% 1972 212 0 0.0% 1971 262 0 0.0% 1971 143 0 0.0% 1971 132 3 2.3% 1971 192 1 0.5% Unit Mix 2 - 1BR 14 - 2BR 1 - 3BR 44 - 1BR 61 - 2BR 2 - 2BR/D 1 -Studio 55 - IBR 25 - 2BR 26 - Studio 84 - IBR 135 - 2BR 62 - 1BR 64 - 2BR 2 - 3BR 16 - 1BR 23 - 2BR 29 - Studio 83 - 1BR 3 - 1BR/D 97 - 2BR 196 - IBR 66 - 2BR 8 -Studio 76 - IBR 51 - 2BR 8 - 3BR 72 - 1BR 60 - 2BR 42 - 1BR 150 - 2BR 583 Continued $1.29 -51.42 No 850 TABLE R-4 -$975 $1.00 - $1.15 SELECT GENERAL OCCUPANCY RENTAL DEVELOPMENT SURVEY $900 _$1,000 PLYMOUTH 1,034 - 1,227 $950 -$1,250 August 2017 518-818 $962 -$1,020 Monthly Rent per Accept Unit Size Rent Square Foot Vouchers -$779 $1.49 -$1.56 Yes 750-750 $859 750 $950 _$995 $1.27 - $1.33 No 850 $1,095 $1.29 $1,149 1,100 $1,250 $1.14 $985 717-741 $980 -$1,095 $1.37 -$1.48 No 961-1,011 $1,070 -$1,295 $1.11 -$1.28 $929 1,100 $1,285 -$1,355 $1.17 -$1.23 $1,150 848 $1,065 -$1,115 $1.26 - $1.31 No 900 $1,150 -$1,200 $1.28 -$1.33 1,152 - 1,185 $1,130 -$1,524 $0.98 - $1.29 500 -674 $955 _$1,095 $1.62 -$1.91 No 700 $1,145 -$1,220 $1.64 - $1.74 800-1,000 $1,255 -$1,445 $1.45 -$1.57 700 -750 $885 -$970 $1.26 -$1.29 Yes 900 -950 $1,065 -$1,200 $1.18 - $1.26 1,100 $1,560 $1.42 840 $925 - $1,075 $1.10 - $1.28 No 1,000 $1,005 - $1,155 $1.01 - $1.16 583 $750-$825 $1.29 -51.42 No 850 $850 -$975 $1.00 - $1.15 900 $900 _$1,000 $1.00 - $1.11 1,034 - 1,227 $950 -$1,250 $0.92 -$1.02 518-818 $962 -$1,020 $1.25 -$1.86 Yes 1,150 $1,150 -$1,299 $1.00 - $1.13 490-500 $729 -$779 $1.49 -$1.56 Yes 750-750 $859 -$969 $1.15 -$1.29 950-1,050 $979 -$1,109 $1.03 -$1.06 1,200 - 1,200 $1,149 -$1,415 $0.96 -$1.18 800 $985 -$1,005 $1.23 -$1.26 No 1,130 - 1,200 $1,125 -$1,225 $1.00 - $1.02 786 $929 -$999 $1.18 - $1.27 No 980-1,080 $1,150 -$1,200 $1.11 - $1.17 Additional storage, patio, garage & surface parking, dishwasher, walk-in closet DVD library, outdoor pool, fitness center, BBQ & picninc area, underground heated parking, playground, party room, laundry facilities, patio/balcony, cenral air, dishwasher Underground heated parking, boat docks, outhdoor pool, multi -sport court, fitness center, party room, DVD library, sauna, dishwasher Tennis & vollyball court, plyground, outdoor pool, tanning, business center, fitness center, sauna, indoor pool, whirlpool, DVD library, community room, underground & surface parking, patio/balcony, dishwasher. central air Clubhouse, fitness center, outdoor heated pool with sundeck, picnic area with grills, playground, surface & garage parking Dishwasher, patio/balcony, laundry facilities, BBQ, picnic area, fitness center, playground, garage parking, near walking/biking trails Walk-in closets, volleyball court, pool, sauna, laundry facilites, additianl storage units, balcony, BBQ, garage and surface parking Outdoor & indoor pool, dry sauna, fitness center, outdoor courtyard, picnic area with BBQ stations, multi -sport court, dog park, playground, tanning suite, coffee cafe, business center, DVD rentals, dry cleaning service Grill & picnic area, laundry facility, tanning salon, dishwasher, balcony, fitness center, playground, pool, sauna, basketball & volleyball court Flexible lease terms, dishwasher, laundry facilities, underground heated parking, patio/balcony, indoor pool, community room, fitness center Walk-in closet, tennis court, pool, sauna, fitness center, clubhouse, additional storage space, dishwasher, underground & surface parking MAXFIELD RESEARCH AND CONSULTING 78 Page 90 RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING 79 Page 91 Continued TABLE R-4 SELECT GENERAL OCCUPANCY RENTAL DEVELOPMENT SURVEY PLYMOUTH August 2017 Year Units/ Monthly Rent per Accept Property Name/Location Built Vacant Unit Mix Unit Size Rent Square Foot Vouchers Amenities/Comments Market Rate Plymouth Pointe 1969 96 2 - Studio 650 $785 -$865 $1.21 - $1.33 No Party room, laundry facilities, property manger on-site, dishwasher, 9630 37th PI N 2 40 - 1BR 800 $855 -$995 $1.07 - $1.24 sundeck, clubhouse, additional storage space, fitness center, pool KMS Management Inc 2.1% 54 - 2BR 1,000 - 1,100 $996 - $1,165 $1.00 - $1.06 South Shore 1969 17 17 -2BR 1,000 $1,150 $1.15 No Balcony, garage & surface parking, nearby parks & playground 10890 South Shore Dr 0 NA 0.0% Countryside Estates 1968 72 35 - IBR 755 $860 -$925 $1.14 - $1.23 No Additional storage space, balcony/patio, BBQ, surface & garage parking, 10101 State Highway 55 1 37 -2BR 855 $960 -$990 $1.12 - $1.16 dishwasher, picnic area Steven Scott Management 1.4% Four Seasons Estates 1968 96 56 - 1BR 860 $849 -$959 $0.99 - $1.12 No Garage & surface parking, balcony, BBQ & picnic area, dishwasher, 9700 37th PI N 0 40 -2BR 1,100 $985 - $1,049 $0.90 - $0.95 fitness center, sauna, pool MN Apartment People 0.0% Four Seasons Villas 1967 240 18 - Studio 600 $779 -$799 $1.30 - $1.33 No Additional storage units, housekeeping, clubhouse, fitness center, pool, 3651 Lancaster Ln N 0 144 - 1BR 900 $869 $0.97 volleyball court, walk-in closet, sundeck, courtyard, picnic area Gary Brummer Management 0.0% 78 - 2BR 1,000 - 1,250 $969 $0.78 - $0.97 Plymouth Colony 1945 126 2 - Studio 525 $750 $1.43 Yes Dishwasher, underground & surface parking, pet play area, additional 1805 County Road 101 0 22 - 1BR 832 $850 -$985 $1.02 - $1.18 storage units, balcony, fitness center, sauna, pool, playground, theatre MN Apartment People 0.0% 102 -2BR 900-1,026 $950 - $1,085 $1.06 - $1.06 room Market Rate Total 6,372 115 1.805% Plymouth Market Area Totals* 6,972 115 1.649% *Vacancy Rate excludes properties that did participate in rental survey. Source: City of Plymouth; Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 79 Page 91 RENTAL MARKET ANALYSIS R-5 SURVEYED UNIT TYPE SUMMARY SELECT GENERAL OCCUPANCY RENTAL DEVELOPMENTS CITY OF PLYMOUTH August 2017 Market RateMonthly Total % of Range Avg. Avg. Rent/ Unit Type Units Total Low - High Rent Sq. Ft. $729 -$1,200 $942 $1.67 Studio 145 2% 1BR 2299 36% $620 - $2,805 $1,178 $1.46 1BR/D 127 2% $900 $1,695 $1,378 $1.36 2BR 3,293 52% $745 -$3,000 $1,411 $1.27 2BR/D 139 2% $1,285 $2,350 $1,794 $1.32 3BR 367 6% $970 - $4,208 $1,875 $1.36 Total: 6,372 100% $620 - $4,208 $1,351 $1.34 Vacant: 1 115 1.8% Affordable Monthly Rents Total % of Range Avg. Avg. Rent/ Unit Type Units Total Low - High Rent Sq. Ft. $764 -$764 $764 $0.80 1BR 4 3% 2BR 52 40% $915 - $1,075 $958 $0.87 3BR 73 57% $1,054 $1,238 $1,175 $0.86 Total: 129 100% 1 $764 - $1,238 1 1 $1,075 1 1 $0.86 Vacant: 0 0% * This table includes data from rental developments that provided complete survey information Source: Maxfield Research and Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 80 Page 92 RENTAL MARKET ANALYSIS Select general occupancy rental projects — Plymouth, MN The Axis Apartments 350 Nathan Ln Shenandoah Woods Apartments 2205 Shenandoah Ln N Parkside Apartments 12105 41St Ave N Stone Creek Apartments 1020 W Medicine Lake Dr Vicksburg Village 15730 Rockford Rd MAXFIELD RESEARCH AND CONSULTING The Quinn Apartments 6110 Quinwood Ln N 81 Page 93 RENTAL MARKET ANALYSIS I At the Lake Apartments 2500 Nathan Ln N Hummingbird Cove Apartments 10405 451h Ave N Lancaster Park 4015 Lancaster Ln N Manor Royal Apartments 3930 Lancaster Ln N Medicine Lake Apartments 1300 W Medicine Lake Dr MAXFIELD RESEARCH AND CONSULTING Stoneleigh at the Reserve 5200 Annapolis Ln N 82 Page 94 RENTAL MARKET ANALYSIS General Occupancy Rental Housing Developments - Plymouth, MN I $#*tu i l7kcPak i Can Park �}-11011 45 22 WNfxab �< 0 a 32 v Sch rnid[Carre Rd � en rrLipb - leak Park E, r _______________________ i EagM � Lake Golf Gan let f I I Timber Baas Lake Shales Perri. Three I Fords I z I J I I I � I Turtle $#*tu l7kcPak i Can Park �}-11011 45 22 37 Ptv n outh Franc h Creek Park 31 Regwrml 20 Plymoutle Park Park x J m Gle_sw+ tkka� 4 Dbsrlln %tk r �12 y L � - 2 U16S Llnra aces: Esri, HERE, CeLornne,, UFC9, Internnap, INCREMENT P, r HRCen, E�ri I . pen, M111ETI, EsriChina !Hong I{vngj, Esri Kcree, tri ;Thailendj, r,naprr+yln�ia, $U ti Lj HCCC, Q 4penSriYE�apmntributors, and the ClS,'PIsa Community MAXFIELD RESEARCH AND CONSULTING 83 Page 95 RENTAL MARKET ANALYSIS MAP KEY GENERAL OCCUPANCY RENTAL HOUSING DEVELOPMENTS CITY OF PLYMOUTH August 2017 1 At the Lake 2 Bass Lake Hills 3 Coachman Trails 4 Countryside Estates 5 Creekside Estates 6 Currents 7 Ellen Villa 8 Fernbrook Townhomes 9 Four Seasons Estates 10 Four Seasons Villas 11 Fox Forest Townhomes 12 Granite Woods 13 Hummingbird Cove 14 Lancaster Park 15 Lancaster Village 16 Manor Royal 17 Medicine Lake Apartments 18 Medicine Lake Woods 19 Oakwood 20 Park Place Apartments 21 Parkers Lake Apartments 22 Parkside at Medicine Lake 23 Plymouth Colony 24 Plymouth Commons 25 Plymouth Pointe 26 Plymouth Ponds 27 Plymouth Square at 37th 28 Shadow Hills 29 South Shore 30 Stone Creek Apartments 31 Stonehill 32 Stoneleigh at the Reserve 33 Summer Creek 34 Sun Valley Mobile Homes 35 The Quinn 36 Vicksburg Commons 37 Vicksburg Village 38 Wellington Apartments 39 Willow Creek 40 Lakeview Commons 41 Shenandoah Woods 42 The Axis 43 West View Estates 44 Kimberly Meadows 45 Mission Oaks 46 Willow Woods Estates Source: Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 84 Page 96 RENTAL MARKET ANALYSIS Natural Occurring Affordable Housing (i.e. Unsubsidized Affordable) Although affordable housing is typically associated with an income -restricted property, there are other housing units in communities that indirectly provide affordable housing. Housing units that were not developed or designated with income guidelines (i.e. assisted) yet are more affordable than other units in a community are considered "naturally -occurring" or "unsubsi- dized affordable" units. This rental supply is available through the private market, versus as- sisted housing programs through various governmental agencies. Property values on these units are lower based on a combination of factors, such as: age of structure/housing stock, loca- tion, condition, size, functionally obsolete, school district, etc. According to the Joint Center for Housing Studies of Harvard University, the privately unsubsi- dized housing stock supplies three times as many low-cost affordable units than assisted pro- jects nationwide. Unlike assisted rental developments, most unsubsidized affordable units are scattered across small properties (one to four unit structures) or in older multifamily structures. Many of these older developments are vulnerable to redevelopment due to their age, modest rents, and deferred maintenance. Because many of these projects have affordable rents, project -based and private housing mar- kets cannot be easily separated. Some household's income -qualify for both market rate and project -based affordable housing. Therefore, it is important to recognize the naturally -occur- ring affordable housing stock to quantify the proportion of renters that might be eligible for housing assistance based on income. Table R-6 illustrates monthly rents by unit type and household size as they relate to affordability. Table R-7 presents a breakdown of all market rate general -occupancy rental projects by household size and area median income (AMI). Table R-8 summarizes project data from Table R-7 based on unit type and affordability. Among the over 5,952 market rate units that were inventoried by unit mix and monthly rents, over 14% of the units are affordable to householders at 50% AMI. Together with 32% of the units affordable at 60% AMI, over 46% of the market rate rental housing inventory is affordable at 50% to 60% AMI. • Over 47% of market rate one -bedroom units are affordable at 50% AMI. Comparatively, two-bedroom units and three-bedroom units were 44% and 1%, respectively. • About 53% of the inventoried market rate units have monthly rents that would be afforda- ble to householders earning 80% to 120% of AMI. These households would qualify for "workforce" housing. Comparatively, roughly 94% of the inventoried market rate units have monthly rents that would be affordable to householders earning 50% to 80% of AMI. MAXFIELD RESEARCH AND CONSULTING 85 Page 97 RENTAL MARKET ANALYSIS TABLE R-6 MAXIMUM RENT BASED ON HOUSEHOLD SIZE AND AREA MEDIAN INCOME HENNEPIN COUNTY - 2017 Maximum Rent d on Household , of Income) HHD Size 30% 50% .0 :0 00 Min Max Min. Max. Min. Studio 1 1 $451 -$451 $751 Max. -$751 Min. Max. $902 -$902 Min. $1,202 Max. -$1,202 Min. $1,503 Max. -$1,503 Min. $1,803 Max. -$1,803 113R 1 2 $451 -$515 $751 -$858 $902 -$1,029 $1,202 -$1,372 $1,503 -$1,715 $1,803 -$2,058 213R 2 4 $515 -$644 $858 -$1,073 $1,029 -$1,287 $1,372 -$1,716 $1,715 -$2,145 $2,058 -$2,574 313R 3 6 $579 -$746 $965 -$1,244 $1,158 -$1,493 $1,544 -$1,990 $1,930 -$2,488 $2,316 -$2,985 413R 4 8 $644 -$850 $1,073 -$1,416 $1,287 -$1,700 $1,716 -$2,266 $2,145 -$2,833 $2,574 -$3,399 1 One -bedroom plus den and two-bedroom plus den units are classified as 113R and 213R units, respectively. To be classified as a bedroom, a den must have a window and closet. Note: 4 -person Hennepin County AMI is $85,800 (2016) Sources: HUD, Novogradac, Maxfield Research and Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 86 Page 98 RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING 87 Page 99 TABLE R-7 MULTIFAMILY MARKET RATE RENTAL DEVELOPMENTS NATURALLY OCCURRING AFFORDABLE RENTAL HOUSING CITY OF PLYMOUTH August 2017 Rent Range Min. Income Units that are Market Rate Affordability by AMI' Min max Needed to Afford' 30% 50% 60% 80% 100% 120% Atthe Lake 8 $729 $779 $29,160 - $31,160 8 Coachman Trails 3 $975 $1,000 $39,000 - $40,000 3 Four Seasons Villas 18 $779 $799 $31,160 - $31,960 18 Medicine Lake Apartments 1 $1,065 $1,115 $42,600 - $44,600 1 Parkside at Medicine Lake 13 $920 $920 $36,800 - $36,800 13 Plymouth Colony 2 $750 $750 $30,000 - $30,000 2 Plymouth Commons 29 $750 $825 $30,000 - $33,000 29 Plymouth Pointe 2 $785 $865 $31,400 - $34,600 2 Stone Creek Apartments 16 $1,100 $1,200 $44,000 - $48,000 16 Stonehill 6 $950 $995 $38,000 - $39,800 - 6 Stoneleigh at the Reserve 21 $1,120 $1,120 $44,800 - $44,800 21 Willow Creek Apartments 26 $955 $1,095 $38,200 - $43,800 - 26 Total/ Average 60 50 37 O 0'. :0 00 At the Lake 76 $859 $869 $34,360 -$34,760 76 Coachman Trails 42 $1,100 $1,175 $44,000 -$47,000 42 Countryside Estates 35 $860 $925 $34,400 -$37,000 45 Creekside Estates 45 $1,130 $1,130 $45,200 -$45,200 45 Currents 139 $962 $1,020 $38,480 -$40,800 139 Four Seasons Estates 56 $849 $959 $33,960 -$38,360 28 28 Four Seasons Villas 144 $869 $869 $34,760 -$34,760 144 Granite Woods 42 $929 $999 $37,160 -$39,960 42 Hummingbird Cove 24 $950 $1,000 $38,000 -$40,000 24 Lancaster Park 6 $1,110 $1,310 $44,400 -$52,400 3 3 Lancaster Village 62 $885 $970 $35,400 -$38,800 31 31 Manor Royal 72 $985 $1,005 $39,400 -$40,200 72 Medicine Lake Apartments 55 $1,150 $1,200 $46,000 -$48,000 55 Medicine Lake Woods 2 $950 $995 $38,000 -$39,800 2 Oakwood 44 $980 $1,095 $39,200 -$43,800 44 Park Place Apartments 120 $1,196 $1,684 $47,840 -$67,360 60 60 Parkers Lake Apartments 74 $1,318 $1,569 $52,720 -$62,760 74 Parkside at Medicine Lake 44 $1,095 $1,135 $43,800 -$45,400 44 Plymouth Colony 22 $850 $985 $34,000 -$39,400 11 11 Plymouth Commons 83 $850 $975 $34,000 -$39,000 42 41 Plymouth Pointe 40 $855 $995 $34,200 -$39,800 20 20 Plymouth Ponds 60 $1,018 $1,378 $40,720 -$55,120 30 30 Plymouth Square at 37th 80 $1,150 $1,765 $46,000 -$70,600 40 40 Shadow Hills 119 $1,156 $1,326 $46,240 -$53,040 119 Shenandoah Woods 6 $620 $695 $24,800 -$27,800 6 Stonehill 90 $1,160 $1,225 $46,400 -$49,000 45 45 Stoneleigh at the Reserve 211 $1,200 $1,280 $48,000 -$51,200 211 Summer Creek 21 $1,000 $1,145 $40,000 -$45,800 21 The Axis 87 $1,275 $1,495 $51,000 -$59,800 87 The Quinn 125 $1,084 $2,805 $43,360 -$112,200 43 41 41 Vicksburg Village 104 $1,214 $1,454 $48,560 - $58,160 104 Wellington Apartments 39 $925 $1,075 $37,000 -$43,000 39 Willow Creek Apartments 84 $1,145 $1,220 $45,800 -$48,800 42 42 Total/Average 2,253 403 721 957 141 41 One -Bedroom plus Den 30% 50% 60% 80% 100% 120% Coachman Trails 6 $1,200 $1,250 $48,000 -$50,000 6 Creekside Estates 42 $1,460 $1,460 $58,400 -$58,400 42 Parkside at Medicine Lake 30 $1,200 $1,270 $48,000 -$50,800 30 Plymouth Commons 3 $900 $1,000 $36,000 -$40,000 3 Shadow Hills 18 $1,280 $1,305 $51,200 -$52,200 18 Stone Creek Apartments 16 $1,490 $2,005 $59,600 -$80,200 8 8 Stoneleigh at the Reserve 42 $1,300 $1,300 $52,000 -$52,000 42 Total/Average 157 3 138 8 8 Continued MAXFIELD RESEARCH AND CONSULTING 87 Page 99 RENTAL MARKET ANALYSIS TABLE R-7 Continued MULTIFAMILY MARKET RATE RENTAL DEVELOPMENTS NATURALLY OCCURRING RENTAL HOUSING CITY OF PLYMOUTH August 2017 MAXFIELD RESEARCH AND CONSULTING 88 Page 100 Rent Min Range max Min. Needed Income to Afford' Units that are 30% 50% Market Rate 60% Affordability 80% by AMI' 100% 120% At the Lake 51 $979 $1,109 $39,160 -$44,360 26 25 Bass Lake Hills 246 $1,495 $1,565 $59,800 -$62,600 246 Coachman Trails 95 $1,310 $1,365 $52,400 -$54,600 95 Countryside Estates 37 $960 $990 $38,400 -$39,600 37 Creekside Estates 117 $1,335 $1,520 $53,400 -$60,800 - - 22 95 Currents 171 $1,150 $1,299 $46,000 -$51,960 171 FernbrookTownhomes 1 $1,295 $1,295 $51,800 -$51,800 1 Four Seasons Estates 40 $985 $1,049 $39,400 -$41,960 40 Four Seasons Villas 78 $969 $969 $38,760 -$38,760 78 Fox Forest Townhomes 80 $1,620 $1,715 $64,800 -$68,600 80 Granite Woods 150 $1,150 $1,200 $46,000 -$48,000 150 Hummingbird Cove 48 $1,060 $1,185 $42,400 -$47,400 48 Lancaser Park 44 $1,310 $1,610 $52,400 -$64,400 44 Lancaster Village 64 $1,065 $1,200 $42,600 -$48,000 64 Manor Royal 60 $1,125 $1,225 $45,000 -$49,000 60 Medicine Lake Apartments 25 $1,130 $1,524 $45,200 -$60,960 20 5 Medicine Lake Woods 14 $1,095 $1,095 $43,800 -$43,800 14 Oakwood 61 $1,070 $1,295 $42,800 -$51,800 61 Park Place Apartments 380 $1,356 $1,767 $54,240 -$70,680 380 Parkers Lake Apartments 144 $1,299 $1,926 $51,960 -$77,040 144 Parkside at Medicine Lake 87 $1,235 $1,290 $49,400 -$51,600 87 Plymouth Colony 102 $950 $1,085 $38,000 -$43,400 102 Plymouth Commons 97 $950 $1,250 $38,000 -$50,000 97 Plymouth Pointe 54 $996 $1,165 $39,840 -$46,600 54 Plymouth Ponds 130 $1,090 $1,575 $43,600 -$63,000 110 20 Plymouth Square at 37th Shadow Hills 68 $1,235 $2,110 $49,400 -$84,400 22 23 23 Shadow Hills 130 $1,370 $1,525 $54,800 -$61,000 130 Shenandoah Woods 8 $745 $905 $29,800 -$36,200 8 South Shore 17 $1,150 $1,150 $46,000 -$46,000 17 Stone Creek Apartments 70 $1,750 $2,495 $70,000 -$99,800 35 35 Stonehill 110 $1,410 $1,460 $56,400 -$58,400 110 Stoneleigh at the Reserve 63 $1,535 $1,565 $61,400 -$62,600 63 Summer Creek 45 $1,000 $1,295 $40,000 -$51,800 45 The Axis 54 $1,920 $2,100 $76,800 -$84,000 54 The Quinn 136 $1,243 $3,000 $49,720 -$120,000 34 34 34 34 Vicksburg Village 198 $1,367 $1,742 $54,680 -$69,680 198 Wellington Apartments 23 $1,005 $1,155 $40,200 -$46,200 23 Willow Creek Apartments 135 $1,255 $1,445 $50,200 -$57,800 135 MAXFIELD RESEARCH AND CONSULTING 88 Page 100 RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING 89 Page 101 TABLE R-7 Continued MULTIFAMILY MARKET RATE RENTAL DEVELOPMENTS NATURALLY OCCURRING RENTAL HOUSING CITY OF PLYMOUTH August 2017 Rent Range Min. Income Units that are Market Rate Affordability by AMI' Coachman Trails 9 $1,495 $1,550 $59,800 -$62,000 9 Oakwood 2 $1,285 $1,355 $51,400 -$54,200 2 Shadow Hills 52 $1,500 $1,629 $60,000 -$65,160 52 Stonehill 12 $1,595 $1,665 $63,800 -$66,600 12 Stoneleigh at the Reserve 24 $1,720 $1,720 $68,800 -$68,800 - 24 The Axis 4 $2,350 $2,350 $94,000 -$94,000 4 Vicksburg Village 36 $2,229 $2,294 $89,160 -$91,760 36 Total/ Average 139 -- -- 2 97 -- 40 mUnits that are Market Rate Affordability by AMI' Two -Bedroom - Penthouse Coachman Trails 1 $1,560 $1,560 $62,400 -$62,400 1 Total/ Average 1 1 Three Bedroom 30% 50% 60% 80% 100% 120% At the Lake 8 $1,149 $1,415 $45,960 -$56,600 4 4 Bass Lake Hills 38 $1,800 $1,930 $72,000 -$77,200 38 Currents 15 $1,850 $1,850 $74,000 -$74,000 - 15 Fernbrook Town homes 71 $1,295 $1,295 $51,800 -$51,800 71 Fox Forest Townhomes 80 $1,799 $1,880 $71,960 -$75,200 80 Hummingbird Cove 2 $1,500 $1,600 $60,000 -$64,000 2 Lancaster Village 2 $1,425 $1,625 $57,000 -$65,000 2 Medicine Lake Woods 1 $1,250 $1,250 $50,000 -$50,000 1 Parkers Lake Apartments 30 $1,784 $2,389 $71,360 -$95,560 15 15 Parkside at Medicine Lake 4 $1,545 $1,610 $61,800 -$64,400 4 Plymouth Ponds 10 $1,610 $1,710 $64,400 -$68,400 - 10 Plymouth Square at 37th 12 $1,615 $2,310 $64,600 -$92,400 6 6 Shadow Hills 3 $1,695 $1,725 $67,800 -$69,000 3 Shenandoah Woods 4 $970 $1,130 $38,800 -$45,200 4 Stone Creek Apartments 20 $2,100 $2,160 $84,000 -$86,400 22 Stonehill 6 $1,685 $1,725 $67,400 -$69,000 6 Summer Creek 6 $1,245 $1,495 $49,800 -$59,800 6 The Quinn 40 $1,920 $4,208 $76,800 -$168,320 14 13 13 Vicksburg Village 32 $1,766 $1,958 $70,640 -$78,320 32 9 Total/ Average 384 9 89 219 56 22 1 Based on a 30% allocation of income to housing for general -occupancy. Senior housing projects were excluded from the calculation. Z Market rate housing that has rents that could be classified as "unsubsidized affordable" units based on the monthly rents and adjusted for household size. Source: Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 89 Page 101 RENTAL MARKET ANALYSIS Licensed Rental Ordinance The City of Plymouth has an ordinance that requires the licensing of all rental properties in the community. The ordinance is designed to ensure all rental properties meet local building and fire safety codes. The rental ordinance requires that all landlords or owners register all rental housing units (from single-family homes to traditional multifamily apartment buildings) and ap- ply for a rental dwelling license. The city requires a license renewal every three years for one and two family dwellings and annual renewals for all other rental dwellings. In addition, initial inspection and periodic inspections to ensure minimum code requirements. MAXFIELD RESEARCH AND CONSULTING 90 Page 102 TABLE R-8 MULTIFAMILY MARKET RATE RENTAL DEVELOPMENTS NATURAL OCCURRING SUMMARY CITY OF PLYMOUTH August 2017 Unit Type 0' Market Rate Affordability 0' 60% 80% 0' 0' STUDIO -- 60 50 37 -- -- 1 BR -- 403 721 957 141 -- 1 BR + DEN -- -- 3 138 8 8 2 BR -- 359 1,287 1,572 146 69 2 BR + DEN -- -- -- 97 -- 40 2 BR PH -- -- -- 1 -- -- 3 BR -- 9 89 219 56 22 Subtotal -- 831 2,150 3,021 351 139 Pct. Of Total 0.0% 12.8% 33.1% 46.5% 5.4% 2.1% Pct. Of Affordability Category STUDIO -- -- -- 1.2% -- -- 1 BR -- 48.5% 33.5% 31.7% 40.2% -- 1 BR + DEN -- -- -- 4.6% 2.3% 5.8% 2 BR -- 43.2% 59.9% 52.0% 41.6% 49.6% 2 BR + DEN -- -- -- 3.2% -- 28.8% 3 BR -- 1.1% -- 7.2% -- 15.8% Source: Maxfield Research & Consulting, LLC Licensed Rental Ordinance The City of Plymouth has an ordinance that requires the licensing of all rental properties in the community. The ordinance is designed to ensure all rental properties meet local building and fire safety codes. The rental ordinance requires that all landlords or owners register all rental housing units (from single-family homes to traditional multifamily apartment buildings) and ap- ply for a rental dwelling license. The city requires a license renewal every three years for one and two family dwellings and annual renewals for all other rental dwellings. In addition, initial inspection and periodic inspections to ensure minimum code requirements. MAXFIELD RESEARCH AND CONSULTING 90 Page 102 RENTAL MARKET ANALYSIS General Occupancy Multifamily Rental Housing Units by Census Tract -2017 P1 is b V i�' `x'44 ��O ❑49 4 4¢ 2 � �oea iay n Rk Soirees: ESFi. HERE. CeLc nne, U �ititerrrrep INcFT--mEHT R 1 Cen, Esri J n,METI,EsriChinak Hong Yng'j Vsri Rasa. Esri Thailan ptlf €i Open5treetMap vontri6vta . and the Legend QA Research & Cowsul in 0 1 2 M i iss MAXFIELD RESEARCH AND CONSULTING 91 Page 103 V i�' `x'44 ��O ❑49 4 4¢ QA Research & Cowsul in 0 1 2 M i iss MAXFIELD RESEARCH AND CONSULTING 91 Page 103 SENIOR HOUSING ANALYSIS Senior Housing Defined The term "senior housing" refers to any housing development that is restricted to people age 55 or older. Today, senior housing includes an entire spectrum of housing alternatives, which occasionally overlap, thus making the differences somewhat ambiguous. However, the level of support services offered best distinguishes them. Maxfield Research and Consulting LLC classi- fies senior housing projects into five categories based on the level of support services offered: Adult/Few Services; where few, if any, support services are provided, and rents tend to be mod- est; Congregate/Optional-Services; where support services such as meals and light housekeeping are available for an additional fee; Congregate/Service-Intensive; where support services such as meals and light housekeeping are included in the monthly rents; Assisted Living; where two or three daily meals as well as basic support services such as trans- portation, housekeeping and/or linen changes are included in the fees. Personal care services such as assistance with bathing, grooming and dressing is included in the fees or is available ei- ther for an additional fee. Memory Care; where more rigorous and service -intensive personal care is required for people with dementia and Alzheimer's disease. Typically, support services and meal plans are similar to those found at assisted living facilities, but the heightened levels of personalized care de- mand more staffing and higher rental fees. These five senior housing products tend to share several characteristics. First, they usually offer individual living apartments with living areas, bathrooms, and kitchens or kitchenettes. Second, they generally have an emergency response system with pull -cords or pendants to promote se- curity. Third, they often have a community room and other common space to encourage social- ization. Finally, they are age -restricted and offer conveniences desired by seniors, although as- sisted living projects sometimes serve non -elderly people with special health considerations. The five senior housing products offered today form a continuum of care (see the graphic on the following page), from a low level to a fairly intensive one; often the service offerings at one type overlap with those at another. In general, however, adult/few services projects tend to attract younger, more independent seniors, while assisted living and memory care projects tend to attract older, frailer seniors. MAXFIELD RESEARCH AND CONSULTING 92 Page 104 SENIOR HOUSING ANALYSIS Senior Housing in Plymouth As of September 2017, Maxfield Research identified nine senior housing developments in Plym- outh. These properties contain a total of 914 units. There are 23 vacancies resulting in an over- all vacancy rate of 2.5% for senior housing developments. The equilibrium vacancy rate for sen- ior housing is considered to be between 5% and 7%. Table S-1 provides information on the senior market rate and properties with public assistance. Information in the table includes year built, number of units, unit mix, number of vacant units, rents, and general comments about each project. The following are key points from our survey of the senior housing supply. Market Rate Active Adult (Rental) Vicksburg Crossing is the only active adult rental project in Plymouth. As of September 2017, there was no vacancy. There are 61 units in this 55+ community. • Market rate units at Vicksburg Crossing have rents from $1,090 for a one -bedroom, $1,250 for a one -bedroom plus den, and range from $1,325 to $1,445 for a two-bedroom unit. Subsidized/Affordable Active Adult (Rental) Subsidized active adult senior housing offers affordable rents to qualified low income sen- iors and handicapped/disabled persons. Typically, incomes are restricted to 30% of the area median income adjusted for household size. For those households meeting the age and in- come qualifications, subsidized senior housing is usually the most affordable rental option available. Affordable projects are typically tax -credit projects that are limited to households earning less than 60% of Hennepin County's area median income. MAXFIELD RESEARCH AND CONSULTING 93 Page 105 CONTINUUM OF HOUSING AND SERVICES FOR SENIORS Single -Family Home Townhome or Congregate Apartments w/ Optional Assisted Living Nursing Facilities Apartment Services Memory Care Townhomes, Apartments, Condomini J"A Congregate Service Intensive - Age -Restricted Independent Single -Fa (Alzheimer's and Cooperatives isted Living with Light Services Dementia Units) Fully Independent Fully or Highly Lifestyle Dependent on Core Senior Housing Product Type Source: Maxfield Research and Consulting, LLC Senior Housing in Plymouth As of September 2017, Maxfield Research identified nine senior housing developments in Plym- outh. These properties contain a total of 914 units. There are 23 vacancies resulting in an over- all vacancy rate of 2.5% for senior housing developments. The equilibrium vacancy rate for sen- ior housing is considered to be between 5% and 7%. Table S-1 provides information on the senior market rate and properties with public assistance. Information in the table includes year built, number of units, unit mix, number of vacant units, rents, and general comments about each project. The following are key points from our survey of the senior housing supply. Market Rate Active Adult (Rental) Vicksburg Crossing is the only active adult rental project in Plymouth. As of September 2017, there was no vacancy. There are 61 units in this 55+ community. • Market rate units at Vicksburg Crossing have rents from $1,090 for a one -bedroom, $1,250 for a one -bedroom plus den, and range from $1,325 to $1,445 for a two-bedroom unit. Subsidized/Affordable Active Adult (Rental) Subsidized active adult senior housing offers affordable rents to qualified low income sen- iors and handicapped/disabled persons. Typically, incomes are restricted to 30% of the area median income adjusted for household size. For those households meeting the age and in- come qualifications, subsidized senior housing is usually the most affordable rental option available. Affordable projects are typically tax -credit projects that are limited to households earning less than 60% of Hennepin County's area median income. MAXFIELD RESEARCH AND CONSULTING 93 Page 105 Memory Care Townhomes, Apartments, Condomini J"A Congregate Service Intensive - (Alzheimer's and Cooperatives isted Living with Light Services Dementia Units) Senior Housing in Plymouth As of September 2017, Maxfield Research identified nine senior housing developments in Plym- outh. These properties contain a total of 914 units. There are 23 vacancies resulting in an over- all vacancy rate of 2.5% for senior housing developments. The equilibrium vacancy rate for sen- ior housing is considered to be between 5% and 7%. Table S-1 provides information on the senior market rate and properties with public assistance. Information in the table includes year built, number of units, unit mix, number of vacant units, rents, and general comments about each project. The following are key points from our survey of the senior housing supply. Market Rate Active Adult (Rental) Vicksburg Crossing is the only active adult rental project in Plymouth. As of September 2017, there was no vacancy. There are 61 units in this 55+ community. • Market rate units at Vicksburg Crossing have rents from $1,090 for a one -bedroom, $1,250 for a one -bedroom plus den, and range from $1,325 to $1,445 for a two-bedroom unit. Subsidized/Affordable Active Adult (Rental) Subsidized active adult senior housing offers affordable rents to qualified low income sen- iors and handicapped/disabled persons. Typically, incomes are restricted to 30% of the area median income adjusted for household size. For those households meeting the age and in- come qualifications, subsidized senior housing is usually the most affordable rental option available. Affordable projects are typically tax -credit projects that are limited to households earning less than 60% of Hennepin County's area median income. MAXFIELD RESEARCH AND CONSULTING 93 Page 105 SENIOR HOUSING ANALYSIS • There are three subsidized/affordable active adult developments in Plymouth. As of Sep- tember 2017, there were two vacancies, for an overall vacancy rate of 1.1%. Equilibrium for senior subsidized housing projects is usually around 3%, allowing for optimal housing availa- bility for potential residents. Unit sizes at these senior properties are often smaller than many of the market rate senior rental projects. Some of these senior apartments also main- tain waiting lists for units. Active Adult (Owner) • There are three cooperative/owner active adult facilities in Plymouth. As of September 2017, there were no vacancies across 210 total owner occupied units. • Tenants purchase their own one -bedroom, two-bedroom, or three-bedroom unit. The cur- rent listing prices range from $42,000 to $61,299 for a one -bedroom unit, $52,000 to $75,824 for a two-bedroom unit, and $81,000 to $112,745 for a three-bedroom unit. In ad- dition, buyers pay a monthly fee. Congregate • There are two congregate facilities in Plymouth. As of September 2017, there were no va- cancies across 99 total congregate units. • Unit types offered are one -bedroom, one -bedroom plus den, and two-bedroom units among congregate facilities in Plymouth. Monthly base rents range from $2,045 for a one - bedroom at Summer Wood of Plymouth to $3,995 for a two bedroom at the Waters of Plymouth. Assisted Living • There are three facilities offering assisted living services in Plymouth. As of September 2017, there were five vacancies across 124 total assisted living units, for a vacancy rate of 2.5%. Market rate basic service rents range from $3,745 for a studio apartment at Cornerstone Commons to $5,195 for a two-bedroom apartment at Waters of Plymouth. Additional cost is based on service level needed. Some common features include kitchenettes, private bathrooms, meals, laundry, and light housekeeping. • Trillium Woods is a Continuing Care Retirement Community (CCRC) and offers independent living, assisted living, and memory care units. CCRC commonly have a buy in to the facility or prepay for units and offer services with monthly fees. MAXFIELD RESEARCH AND CONSULTING 94 Page 106 SENIOR HOUSING ANALYSIS Memory Care • There are four facilities offering memory care services in Plymouth. As of September 2017, there were 16 vacant units across 122 total memory care units, for a vacancy rate of 13.1%. • Basic market rate rents for memory care range from $2,855 for a studio at Summer Wood of Plymouth to $7,075 for a one -bedroom at Cornerstone Commons. There is additional cost based on service level needed. Some features include daily exercise and programs, din- ing, and common areas for recreation. 250 F__ 200 150 100 50 0 Senior Housing Summary Chart Active Adult - Sub/Aff Active Adult - Congregate Assisted Memory Care CC RC Rental Active Adult Owner Living � No. Units —.*--Vacancy Rate Note: Vacancies were not ava ila ble for the only CCRC property. 14.0% 12.0% 10.0% v Y 8.0% C2 U C 6.0% 4.0% 2.0% 0.0% MAXFIELD RESEARCH AND CONSULTING 95 Page 107 SENIOR HOUSING ANALYSIS MAXFIELD RESEARCH AND CONSULTING 96 Page 108 TABLE 5-1 SENIOR HOUSING PROJECTS PLYMOUTH September 2017 Year No. of No. Monthly Rent/ Rent/Sales price/PSF Project Name/City Built Units Vacant No. Type Sizes Sale Price Min - Max Services/Amenities/Comments Market Rate Active Adult Vicksburg Crossing 2006 61 0 31 - 1BR 852 $1,090 $1.28 In -unit washer & dryer, additional storage, dishwasher, fitness 3155 Vicksburg Ln N 0.0% 8 - 1BR/D 950 $1,250 $1.32 center, heated underground parking, library/computer room, 55+ 22 - 21313 1174 $1,325 - $1,445 $1.13 - $1.23 Sub/Aff Active Adult Vicksburg Crossing 2006 33 0 33 - 1 BR 852 $795 $0.93 In -unit washer & dryer, additional storage, dishwasher, fitness 3155 Vicksburg Ln N 0.0% center, heated underground parking, library/computer room, 55+ Bassett Creek Commons 1998 46 0 45 - 1 BR 535 $492 $0.92 Clubhouse, usiness center, laundry facilities, 62+ 10505 8th Ave N 0.0% 1 - 2 BR N/A $630 N/A Plymouth Town Square 1994 99 2 60 - 1 BR 585 37% of Income N/A Surface & undergroud parking, Iribrary, activity room with kitchen, 15500 37th Ave N 2.0% 39 - 2 BR 938 37% of Income N/A 55+ Cooperative/Ownership Active Adult Cornerstone Cooperative 2001 77 0 17 - 1BR 779 $42,000 $53.92 Variety of social events, in -unit washer & dryer, car wash bay, 3790 Lawndale Ln N 0.0% 58 - 2BR 1,083 - 1,368 $52,000 - $70,000 $48.01 - $51.17 heated garage, library, craft room, fitness center, balcony, 54 2 - 3BR 1,561 $81,000 $51.89 people on the waiting list, 55+ Gramercy Park Cooperative Northwest 2001 77 0 7 - 1BR 840 - 998 $51,870 - $61,299 $61.42 - $61.75 Social activities, guest suite, craft room, fitness center, 6195 Northwest Blvd 0.0% 61 - 2BR 992 - 1,237 $60,879 - $75,824 $61.30 - $61.37 library/computer center, underground heated parking, workshop, 9 - 3BR 1,778 - 1,832 $106,536 - $112,745 $59.92 - $61.54 outdoor deck with grills, 55+ Gramercy Park of Plymouth N/A 56 0 7 - 1BR 840 - 1,075 $42,872 - $57,461 $51.04 - $53.45 10400 45th Ave N 0.0% 49 - 2BR 992 - 1,257 $54,467 - $65,488 $52.10 - $54.91 Congregate The Waters of Plymouth 2013 31 0 19 - 1BR 582 - 918 $2,600 - $3,550 $3.87 - $4.47 Spa & salon, housekeeping, laundry, dining, various health & 11305 Highway 55 0.0% 8 - 1BR/D 868 - 1,173 $3,500 - $3,995 $3.41 - $4.03 wellbeing programs, cable, wi-fi, in -unit washer and dryer 4 - 2BR 1,134 $3,995 $3.52 SummerWood of Plymouth 2003 68 0 45 - 1BR 805 - 995 $2,045 - $2,320 $2.33 - $2.54 Salon, billiard parlor, community room, conveience store, game 16205 36th Ave N 0.0% 23 - 2BR 945 - 1,094 $2,740 - $3,050 $2.79 - $2.90 room, garage, in-home care, library, message therapy, scheduled transportaion, theatre, private storage unit, emergency call equipment Trillium Woods 2014 120 N/A Pool, fitness center, library, auditorium, covered parking, wellness 5855 Cheshire Parkway N programs, all services available MAXFIELD RESEARCH AND CONSULTING 96 Page 108 SENIOR HOUSING ANALYSIS MAXFIELD RESEARCH AND CONSULTING 97 Page 109 Continued TABLE S-1 SENIOR HOUSING PROJECTS PLYMOUTH September 2017 Year No. of No. Monthly Rent/ Rent fee/PSF Project Name/City Built Units Vacant No. Type Sizes Sale Price Min - Max Comments Assisted Living The Waters of Plymouth 2013 30 0 18 - 1BR 582 - 918 $3,800 - $4,750 $5.17 - $6.53 Spa & salon, housekeeping, laundry, dining, various health & 11305 Highway 55 0.0% 8 - 1BR/D 868 - 1,173 $4,700 - $5,195 $4.43 - $5.41 wellbeing programs, cable, wi-fi, in -unit washer and dryer 4 - 2BR 1,134 $5,195 $4.58 Cornerstone Commons 2004 66 5 4 - Studio 453 $3,745 $8.27 Walk-in showers, central air, weekly houskeeping, scheduled social 3750 Lawndale Ln N 7.6% 55 - 1BR 547- 667 $4,070 - $4,615 $6.92 - $7.44 events, transportation, spiritual services 7 - 2BR 737 $5,295 $7.18 Summerwood of Plymouth 2002 28 0 22 - 1BR 600 - 803 $3,170 - $3,890 $4.84 - $5.28 Salon, billiard parlor, community room, conveience store, game 16205 36th Ave N 0.0% 6 - 2BR 890 - 896 $4,345 - $4,470 $4.88 - $4.99 room, garage, in-home care, library, message therapy, scheduled transportaion, theatre, private storage unit, emergency call equipment Memory Care Brookdale Plymouth 1999 52 15 52 - Studio 300 - 700 $4,050 $13.50 - $5.79 24 hour emergency response, library, beauty/barber shop, daily 15855 22nd Ave N 28.8% meals, on-site & off-site activies Cornerstone Commons 2004 18 0 16 - Studio 779 $6,220 - $6,605 $7.98 - $8.48 Walk-in showers, central air, weekly houskeeping, scheduled social 3750 Lawndale Ln N 0.0% 2 - 1BR 1,083 - 1,368 $7,075 $6.53 - $5.17 events, transportation, spiritual services SummerWood of Plymouth 2003 24 1 24 - Studio 394 - 469 $2,855 - $2,925 $6.09 - $7.25 Salon, billiard parlor, community room, conveience store, game 16205 36th Ave N 4.2% room, garage, in-home care, library, message therapy, scheduled transportaion, theatre, private storage unit, emergency call equipment The Waters of Plymouth 2013 28 0 24 - Studio 414 - 479 $4,750 - $4,850 $10.13 - $11.47 Spa & salon, housekeeping, laundry, dining, various health & 11305 Highway 55 0.0% 4 - 1BR 493 $4,825 $9,79 wellbeing programs, cable, wi-fi, in -unit washer and dryer Source: Maxfield Research and Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 97 Page 109 SENIOR HOUSING ANALYSIS S-2 AVALABLE SURVEYED UNIT TYPE SUMMARY SENIOR HOUSING DEVELOPMENTS September 2017 Active Adult MR RentalPurchase Range Price Range Avg. Avg. Rent/ Total % of Avg. Unit Type Units Total Size Low - High Rent Sq. Ft. 852 $1,090 $1,090 $1.28 16R 31 51% 1BR/D 8 13% 9S0 $1,250 $1,250 $1.32 26R 22 36% 1,174 $1,325 - $1,445 $1,385 $1.18 Total: 61 100% 992 $1,090 - $1,445 $1,242 Vacancy Rate: 0.0% Active Adult Aff. Rental Monthly Rents Total % of Avg. Range Avg. Avg. Rent/ Unit Type Units Total Size Low - High Rent Sq. Ft. $492 -$795 $644 $0.98 1611 138 78% 657 26R 40 22% 938 $630 $630 $0.67 Total: 178 100% 798 $492 -$795 $637 $0.83 Vacancy Rate: 1.1% Active Adult OwnerMonthly Rents Total % of Avg. Range Avg. Avg. Rent/ Unit Type Units Total Size Low - High Rent Sq. Ft. $42,000 $61,299 $51,100 $56.38 1611 31 15% 906 26R 168 80% 736 $52,000 $75,824 $63,110 $85.75 36R 11 5% 1,724 $81,000 $112,745 $100,094 $58.07 Total: 210 100% 1,122 $42,000 - $112,745 11 $71,435 $66.73 Vacancy Rate: 0.0% CongregateBase Monthly Rents Total % of Avg. Range Avg. Avg. Rent/ Unit Type Units Total Size Low - High Rent Sq. Ft. $2,045 - $3,550 $2,629 $3.19 1611 64 65% 825 16R/D 8 8% 1,021 $3,500 - $3,995 $3,748 $3.67 26R 27 27% 1,058 $2,740 - $3,995 $3,262 $3.08 Total: 99 100% 968tt $2,045 - $3,995 $3,213 $3.31 Vacancy Rate: 0.0% Assisted LivingBase Monthly Rents Total % of Avg. Range Avg. Avg. Rent/ Unit Type Units Total Size Low - High Rent Sq. Ft. $3,745 $3,745 $8.27 Studio 4 3% 453 16R 95 77% 686 $3,170 - $4,750 $4,049 $5.90 1BR/D 8 6% 1,021 $4,700 $5,195 $4,948 $4.85 2BR 17 14% 11 914 $4,345 - $5,295 11 $4,826 Total: 124 100% 11 768 11 $3,170 - $5,295 $4,392 Vacancy Rate: 4.0% Memory CareBase Monthly Rents Total %of Avg. Range Avg. Avg. Rent/ Unit Type Units Total Size Low - High Rent Sq. Ft. $2,855 - $6,605 $4,608 $11.78 Studio 116 95% 391 1611 6 5% 601 $4,825 - $7,075 $5,950 $9.89 Total: 122 100% 458 $2,855 - $7,075 $5,279 $10.84 Vacancy Rate: 13.1% Source: Maxfield Research and Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 98 Page 110 SENIOR HOUSING ANALYSIS Select Senior Housing Projects — Plymouth, MN mniIIIiiiiiiiiiiiiiiiii4 Summer Wood of Plymouth 16205 36th Ave N Trillium Woods 5855 Cheshire Pkwy Iq The Waters of Plymouth Plymouth Town Square 1530037 th Ave N Vicksburg Crossing 3155 Vicksburg Ln N Gramercy Park Cooperative Northwest 6195 Northwest Blvd MAXFIELD RESEARCH AND CONSULTING 99 Page 111 SENIOR HOUSING ANALYSIS 19 Bassett Creek Commons 105058 th Ave N Brookdale Plymouth 15855 22nd Ave N Cornerstone Commons 3750 Lawndale Ln N MAXFIELD RESEARCH AND CONSULTING Cherrywood Pointe of Plymouth — Expected 2018 18405 Old Rockford Rd 100 Page 112 SENIOR HOUSING ANALYSIS w ■ ■ .■ aMar Qt!111U1 P9Uublll 1JeVe1Up[11e11Lb - rlylilumll, IVIN F: y--.I---------------------tom--- I 1 I � I n I � 1 � 0 I I $clinkidlL HoIFldale I Turtle � �L1 ke PaM � Qr"RockkudRd . 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Peke '-- YID------------1aba---------- I Eag4 I Lake GoH j Lerlpr I od� I Tm bar 8dc9 Lala Shores park Three Wide � J I I I y m 4 � I I e � I # Oouth I :yPark {+oaperative of Plym I• Gramercy Par[ Z----p&raVv- Na.th'.vC t R� go�y,taid - I I I I I I I I I Flr rimer I I I ParkI Suis r I I I Mledicine Lake I I I Weal I kded is lFK- uth J I I r� h4�tidneLaka � X .'."' �3 6 O li I O The W Eters of Plymouth e4 M Bassett uree{ w3mrn Dns o I .I GL,l tib''°` I. Park s: ESri, HERE, CeLarmer JJOPS. Intermap, 114GREMENT P. FlRGa n, M ET I, ESri China f Hoo lypngj, Esri Korea, ES ri {Thailand}, Mapmyl Q OpenStreetMapcontributm. and the 015 User Community MAXFIELD RESEARCH AND CONSULTING 101 Page 113 SENIOR HOUSING ANALYSIS Senior Housing Comparison Table S-3 & S-4 provide a comparison on senior housing units broken down by service level in Plymouth compared to neighboring peer cities in the Metro Area. Table S-3 SENIOR HOUSING COMPARISION PLYMOUTH ANALYSIS AREA • 65+ Pop. Pct. of Total Pop. (2017) 65+ Penetration Rate (2017) • 15.6% 7.7% Eden Prairie 12.0% 12.4% • 24.2% 17.9% Golden Valley 23.4% 19.4% Maple Grove 11.0% 13.3% • 15.6% 0.0% Minnetonka 21.3% 13.5% • 15.2% 13.4% Note: Penetration Rate equals the number of senior housing units divided by senior population Source: ESRI; Twin Cities Senior Housing Guide; Maxfield Research, Inc. MAXFIELD RESEARCH AND CONSULTING 102 Page 114 SENIOR HOUSING ANALYSIS TABLE S-4 SENIOR HOUSING COMPARISION PLYMOUTH ANALYSIS AREA Senior Housing Summary Total Population (2017) 64,545 51,476 ..- 21,536 69,340 6,259 52,664 48,973 UNEW 76,150 65+ Population (2017) 11,852 7,763 12,440 5,040 7,647 976 11,219 7,429 65+ Pop. Percent of Total Pop. 15.6% 12.0% 24.2% 23.4% 11.0% 15.6% 21.3% 15.2% MR Active Adult Units (Rental) 61 56 188 0 158 0 73 58 Sub/Aff Active Adult Units (Rental) 178 60 391 202 138 0 314 196 Active Adult/Coop. Units (Owner) 210 337 337 119 176 0 89 106 Congregate Units 99 273 343 225 94 0 485 403 Assisted Living Units 124 188 759 146 293 0 405 149 Memory Care Units 122 51 214 89 157 0 149 80 CCRC Units 120 0 0 199 0 0 0 0 Total Senior Units 914 965 21232 980 1,016 0 1,515 992 65+ Penetration Rate 7.7% 12.4% 17.9% 19.4% 13.3% 0.0% 13.5% 13.4% Source: ESRI; Twin Cities Senior Housing Guide; Maxfield Research, Inc. MAXFIELD RESEARCH AND CONSULTING 103 Page 115 HOUSING DEMAND ANALYSIS Introduction Previous sections of this study analyzed the existing housing supply and the growth and demo- graphic characteristics of the population and household base in Plymouth. This section of the report presents our estimates of housing demand in Plymouth from 2017 through 2030. Demographic Profile and Housing Demand The demographic profile of a community affects housing demand and the types of housing that are needed. The housing life -cycle stages are: 1. Entry-level householders • Often prefer to rent basic, inexpensive apartments • Usually singles or couples in their early 20's without children • Will often "double -up" with roommates in apartment setting 2. First-time homebuyers and move -up renters • Often prefer to purchase modestly -priced single-family homes or rent more upscale apartments • Usually married or cohabiting couples, in their mid -20's or 30's, some with children, but most are without children 3. Move -up homebuyers • Typically prefer to purchase newer, larger, and therefore more expen- sive single-family homes • Typically, families with children where householders are in their late 30's to 40's 4. Empty -nesters (persons whose children have grown and left home) and never -nesters (persons who never have children) • Prefer owning but will consider renting their housing • Some will move to alternative lower -maintenance housing products • Generally, couples in their 50's or 60's 5. Younger independent seniors • Prefer owning but will consider renting their housing • Will often move (at least part of the year) to retirement havens in the Sunbelt and desire to reduce their responsibilities for upkeep and maintenance • Generally, in their late 60's or 70's MAXFIELD RESEARCH AND CONSULTING 104 Page 116 HOUSING DEMAND ANALYSIS 6. Older seniors • May need to move out of their single-family home due to physical and/or health constraints or a desire to reduce their responsibilities for upkeep and maintenance • Generally single females (widows) in their mid -70's or older Demand for housing can come from several sources including: household growth, changes in housing preferences, and replacement need. Household growth necessitates building new housing unless there is enough desirable vacant housing available to absorb the increase in households. Demand is also affected by shifting demographic factors such as the aging of the population, which dictates the type of housing preferred. New housing to meet replacement need is required, even in the absence of household growth, when existing units no longer meet the needs of the population and when renovation is not feasible because the structure is physi- cally or functionally obsolete. Rural areas tend to have higher proportions of younger households that own their housing than in the larger growth centers or metropolitan areas such as the Twin Cities Metro Area. In addi- tion, senior households tend to move to alternative housing at an older age. These conditions are a result of housing market dynamics, which typically provide more affordable single-family housing for young households and a scarcity of senior housing alternatives for older house- holds. The graphic on the following page provides greater detail of various housing types supported within each housing life cycle. Information on square footage, average bedrooms/bathrooms, and lot size is provided on the subsequent graphic. Housing Demand Overview The previous sections of this assessment focused on demographic and economic factors driving demand for housing in Plymouth. In this section, we utilize findings from the economic and de- mographic analysis to calculate demand for new general occupancy housing units in Plymouth. Housing markets are driven by a range of supply and demand factors that vary by location and submarket. The following points outline several of the key variables driving housing demand. MAXFIELD RESEARCH AND CONSULTING 105 Page 117 HOUSING DEMAND ANALYSIS DEMOGRAPHICS & HOUSING DEMAND 18-24 18 - 24 25-29 18-34 30-34 25-39 35-39 30-49 40-44 45-49 50-54 55-59 60-64 65-69 70-74 65-79 75-79 80-84 85+ Source: Maxfield Research & Consulting, LLC 40-64 55-74 55+ & 65+ MAXFIELD RESEARCH AND CONSULTING 106 Page 118 HOUSING DEMAND ANALYSIS TYPICAL HOUSING TYPE CHARACTERISTICS Entry-level single-family First-time buyers: Families, 1,200 to 2,200 sq. ft. 80'+ wide lot couples w/no children, some 2-4 BR 1 2 BA 2.5-3.0 DU/Acre singles Move -up single-family Step-up buyers: Families, 2,000 sq. ft.+ 80'+ wide lot couples w/no children 3-4 BR 12-3 BA 2.5-3.0 DU/Acre Executive single-family Step-up buyers: Families, 2,500 sq. ft.+ 100'+ wide lot couples w/no children 3-4 BR 1 2-3 BA 1.5-2.0 DU/Acre Small -lot single-family First-time & move -down buyers: 1,700 to 2,500 sq. ft. 40' to 60' wide lot Families, couples w/no children, 3-4 BR 1 2-3 BA 5.0-8.0 DU/Acre empty nesters, retirees Entry-level townhomes First-time buyers: Singles, 1,200 to 1,600 sq. ft. 6.0-12.0 DU/Acre couples w/no children 2-3 BR 11.SBA+ Move -up townhomes First-time & step-up buyers: 1,400 to 2,000 sq. ft. 6.0-8.0. DU/Acre Singles, couples, some families, 2-3 BR 12BA+ empty -nesters Executive townhomes/twinhomes Step-up buyers: Empty -nesters, 2,000+ sq. ft. 4.0-6.0 DU/Acre retirees 3 BR+ 12BA+ Detached Townhome Step-up buyers: Empty -nesters, 2,000+ sq. ft. 4.0-6.0 DU/Acre retirees, some families 3 BR+ 12BA+ Condominums First-time & step-up buyers: 800 to 1,700 sq. ft. Low-rise: 18.0-24.0 DU/Acre Singles, couples, empty -nesters, 1-2 BR 1 1-2 BA Mid -rise: 25.0+ DU/Acre retirees Hi -rise: 75.0+ DU/Acre Apartment -style rental housing Singles, couples, single -parents, 675 to 1,250 sq. ft. Low-rise: 18.0-24.0 DU/Acre some families, seniors 1-3 BR 1 1-2 BA Mid -rise: 25.0+ DU/Acre Hi -rise: 75.0+ DU/Acre Townhome-style rental housing Single -parents, families 900 to 1,700 sq. ft. 8.0-12.0 DU/Acre w/children, empty nesters 2-4 BR I 213 Student rental housing College students, mostly 550 to 1,400 sq. ft. Low-rise: 18.0-24.0 DU/Acre undergraduates 1-4BR 1 1-2 BA Mid -rise: 25.0+DU/Acre Hi -rise: 50.0+ DU/Acre Senior housing Retirees, Seniors 550 to 1,500 sq. ft. Varies considerably based on Suites - 2BR 1 1-2 BA senior product type 1 Dwelling units(DU) per acre expressed in net acreage (minus right-of-way) Source: Maxfield Research & Consulting, LLC Demographics Demographics are major influences that drive housing demand. Household growth and for- mations are critical (natural growth, immigration, etc.), as well as household types, size, age of householders, incomes, etc. Economy & lob Growth The economy and housing market are intertwined; the health of the housing market affects the broader economy and vice versa. Housing market growth depends on job growth (or the pro- spect of); jobs generate income growth which results in the formation of more households and can stimulate household turnover. Historically low unemployment rates have driven both exist- ing home purchases and new -home purchases. Lack of job growth leads to slow or diminishing MAXFIELD RESEARCH AND CONSULTING 107 Page 119 HOUSING DEMAND ANALYSIS household growth, which in -turn relates to reduced housing demand. Additionally, low income growth results in fewer move -up buyers which results in diminished housing turnover across all income brackets. Consumer Choice/Preferences A variety of factors contribute to consumer choice and preferences. Many times a change in family status is the primary factor for a change in housing type (i.e. growing families, empty - nest families, etc.). However, housing demand is also generated from the turnover of existing households who decide to move for a range of reasons. Some households may want to move - up, downsize, change their tenure status (i.e. owner to renter or vice versa), or simply move to a new location. Supply (Existing Housing Stock) The stock of existing housing plays a crucial component in the demand for new housing. There are a variety of unique household types and styles, not all of which are desirable to today's con- sumers. The age of the housing stock is an important component for housing demand, as com- munities with aging housing stocks have higher demand for remodeling services, replacement new construction, or new home construction as the current inventory does not provide the supply that consumers seek. Plymouth and suburbs like it have an older housing that results in higher demand for remodeling services and infill redevelopment. Pent-up demand may also exist if supply is unavailable as householders postpone a move until new housing product becomes available. Housing Finance Household income is the fundamental measure that dictates what a householder can afford to pay for housing costs. According to the U.S. Department of Housing and Urban Development (HUD), the definition of affordability is for a household to pay no more than 30% of its annual income on housing (including utilities). Families who pay more than 30% of their income for housing (either rent or mortgage) are considered cost burdened and may have difficulty afford- ing necessities such as food, clothing, transportation and medical care. After the Great Recession lenders "tightened the belts" on mortgage lending and it was difficult for many buyers to obtain financing. The ability of buyers to obtain mortgage financing has re- cently lightened as lenders have eased restrictions that had been in place since the recession. However, lenders are still requiring substantially higher credit scores and equity than last dec- ade. MAXFIELD RESEARCH AND CONSULTING 108 Page 120 HOUSING DEMAND ANALYSIS Mobility It is important to note that demand is somewhat fluid between other west/northwest Twin Cit- ies Metro Area communities and will be impacted by development activity in nearby areas. Estimated Demand for General -Occupancy Rental Housing Table HD-1 presents our calculation of general -occupancy rental housing demand in Plymouth. This analysis identifies potential demand for rental housing that is generated from both new households and turnover households. A portion of the demand will be drawn from existing households in Plymouth that want to upgrade their housing situations. The 65 and older cohort is typically not a target market for new general occupancy rental hous- ing, therefore, we limit demand from household growth to only those households under the age of 65. According to our projections, Plymouth is expected to add 3,300 new households be- tween 2017 and 2030 (651 households non -senior households). We estimate that 32% will be renting their housing, which produces demand for 208 new general occupancy rental housing units between 2017 and 2030. Demand is also forecast to emerge from existing Market Area householders through turnover. An estimated 7,592 renter -occupied households under the age of 65 are located in Plymouth in 2017. Based on mobility data from the Census Bureau, an estimated 85% of renter households will turnover in a 15 -year period, resulting in 6,453 existing households projected to turnover. Finally, we estimate 15% of the existing renter households will seek new rental housing, resulting in demand for 968 rental units through 2030. Next, we estimate that 25% of the total demand for new rental units in Plymouth will come from people currently living outside of the City of Plymouth. Adding demand from outside Plymouth to the existing demand potential, results in a total estimated demand for 1,568 rental housing units by 2030. Based on a review of rental household incomes and sizes and monthly rents at existing projects, we estimate that approximately 12% of the total demand will be for subsidized housing (30% AMI), 26% will be for affordable housing (40% to 60% AMI), and 62% will be for market rate housing (non -income restricted). As of September 2017, there are no pending or under construction market rate rental housing projects that will satisfy the calculated rental housing demand, which results in an overall de- mand for 188 subsidized units, 408 affordable units, and 972 market rate units. MAXFIELD RESEARCH AND CONSULTING 109 Page 121 HOUSING DEMAND ANALYSIS TABLE HD-1 RENTAL HOUSING DEMAND CITY OF PLYMOUTH 2017 to 2030 Demand from Projected Household Growth Projected HH growth under age 65 in Plymouth 2017 to 2030' 651 (times) Estimated %to be renting their housingZ x 32% (equals) Projected demand from new HH growth = 208 Demand from Existing Renter Households Number of renter HHs (age 64 and younger) in Plymouth (2017 )3 7,592 (times) Estimated percent of renter turnover° x 85% (equals) Total existing households projected to turnover = 6,453 (times) Estimated percent desiring new rental housing x 15% (equals) Demand from existing households 968 (equals) Total demand from HH growth and existing HHs 2017 to 2030 = 1,176 (times) Demand from outside Plymouth 25% (equals) Total demand potential for rental housing, 2017 to 2030 1,568 Deep Shallow Market Subsidy Subsidy Rate (times) Percent of rental demand by product types x 12% 26% 62% (equals) Total demand potential for general -occupancy rental housing units = 188 408 972 (minus) Units under construction or pending 0 0 0 (equals) Excess demand for new general occupancy rental housing = 188 408 972 1 Estimated household growth based on projections as adjusted by Maxfield Research and Consulting LLC 2 Pct. of renter households under the age of 65 (ACS - 2015, ESRI, Maxfield Research and Consulting LLC). 3 Estimate based on 2015 ACS renter households and new renter household growth 2010 to 2017 (under age 65) ° Based on on turnover from 2015 American Community Survey for households moving over 15 -year period. 5 Based on the combination of current rental product and household incomes of area renters (non -senior households) 6 Pending/proposed/under construction at 95% occupancy. Source: Maxfield Research and Consulting LLC MAXFIELD RESEARCH AND CONSULTING 110 Page 122 HOUSING DEMAND ANALYSIS Estimated Demand for Independent Adult/Few Service Senior Housing Table HD -2 presents our demand calculations for market rate independent senior housing in Plymouth in 2017 and 2022. In order to determine demand for independent senior housing, the potential market is reduced to those households that are both age and income qualified. The age -qualified market is de- fined as seniors age 55 and older, although independent living projects will primarily attract seniors age 65 and older. We calculate that the minimum income needed to afford monthly rents is $35,000 or more plus homeowner households with incomes between $25,000 and $34,999 who would be able to supplement their incomes with the proceeds from a home sale. We estimate the number of age/income-qualified senior households in the Plymouth in 2017 to be 12,077 households. Adjusting to include appropriate long-term capture rates for each age cohort (0.5% of house- holds age 55 to 64, about 5.5% of households age 65 to 74, and 16.5% of households age 75 and over) results in a market rate demand potential for 620 independent senior rental units in 2017. Some additional demand will come from outside the Plymouth. We estimate that 25% of the long-term demand for independent senior housing will be generated by seniors currently resid- ing outside the Plymouth. This demand will consist primarily of parents of adult children living in the Plymouth area, individuals who live just outside of Plymouth and have an orientation to the area, as well as former residents who desire to return. Together, the demand from Plym- outh seniors and demand from seniors who would relocate to Plymouth results in a demand for 827 market rate active adult units in 2017. Independent demand in Plymouth is apportioned between ownership and rental housing. Based on the age distribution, homeownership rates and current product available in Plymouth, we project that 50% of Plymouth's demand will be for adult ownership housing (413 units) and 50% will be for rental housing (413 units). Next, we subtract existing competitive market rate units (minus a vacancy factor of 5% to allow for sufficient consumer choice and turnover) from the owner and rental demand. Subtracting the existing competitive market rate units results in total demand potential for 214 adult owner -occupied units and 261 active adult rental units. MAXFIELD RESEARCH AND CONSULTING 111 Page 123 HOUSING DEMAND ANALYSIS Adjusting for inflation, we have estimated that households with incomes of $45,000 or more and homeowners with incomes of $35,000 to $44,999 would income qualify for market rate in- dependent senior housing in 2030. Considering the growth in the older adult base, the income distribution of the older adult population in 2030, and planned and under construction units at Cherrywood Pointe and Agora the methodology projected that demand will be 308 adult owner -occupied units and 262 adult rental units in the City of Plymouth. MAXFIELD RESEARCH AND CONSULTING 112 Page 124 TABLE HD -2 MARKET RATE ACTIVE ADULT HOUSING DEMAND CITY OF PLYMOUTH 2017 and 2030 2017 2030 Age of Householder Age of Householder 55-64 65-74 75+ 55-64 65-74 75+ # of Households w/ Incomes of >$35,000' 5,725 3,639 2,024 5,816 4,594 2,462 # of Households w/ Incomes of $25,000 to $34,999' + 240 234 358 + 227 300 458 (times ) Homeownership Rate x 87% 89% 76% x 87% 89% 76% = 5,934 3,847 2,296 (equals) Total Potential Market Base = 6,013 4,861 2,810 (times) Potential Capture Rate x 0.5% 5.5% 16.5% x 0.5% 5.5% 16.5% (equals) Demand Potential = 30 212 379 = 30 267 464 Potential Demand from Residents = 620 = 761 (plus) Demand from Outside Plymouth (25%) + 207 + 254 (equals) Total Demand Potential = 827 = 1,015 Owner- Renter- Owner- Renter - Occupied Occupied Occupied Occupied (times) % by Product Type x 50% x 50% x 50% x 50% (equals) Demand Potential by Product Type = 413 = 413 = 507 = 507 (minus) Existing and Pending MR Active Adult Unitsz 200 152 200 245 (equals) Excess Demand for MR Active Adult Units = 214 = 261 = 308 = 262 ' 2030 calculations define income -qualified households as all households with incomes greater than $45,000 and homeowner households with incomes between $35,000 and $44,999. ' Existing and pending are deducted at market equilibrium 195% occupancy). Source: Maxfield Research and Consulting LLC Adjusting for inflation, we have estimated that households with incomes of $45,000 or more and homeowners with incomes of $35,000 to $44,999 would income qualify for market rate in- dependent senior housing in 2030. Considering the growth in the older adult base, the income distribution of the older adult population in 2030, and planned and under construction units at Cherrywood Pointe and Agora the methodology projected that demand will be 308 adult owner -occupied units and 262 adult rental units in the City of Plymouth. MAXFIELD RESEARCH AND CONSULTING 112 Page 124 HOUSING DEMAND ANALYSIS Estimated Demand for Subsidized/ Affordable Independent Senior Housing Table HD -3 presents our demand calculations for subsidized/affordable independent senior housing in the City of Plymouth in 2017 and 2030. In order to arrive at the potential age and income qualified base for low income and affordable housing, we exclude all senior (65+) households with incomes more than $40,000. We exclude homeowner households with incomes between $35,000 and $39,999, as these households would have additional equity that could be converted to monthly income following the sales of their single-family homes. Households in a need -based situation (either requiring services or financial assistance) more readily move to housing alternatives than those in non -need based situations. Hence, the cap- ture rate among each age group is higher than for market rate housing. Capture rates are em- ployed at 2.0% for households age 55 to 64, 10.0% for households age 65 to 74 and 20.0% for households age 75 and older. Seniors in need -based situations are less selective when securing housing than those in non - need based situations. We estimate that a high-quality site would capture a greater proportion of total demand for financially -assisted housing than for market rate housing. Using the methodology described above results in a demand potential for 463 total subsidized or affordable senior units. However, after adjusted for household incomes demand results for 236 subsidized units and 227 affordable units. Next we subtract existing competitive units from the overall demand. There are 96 existing subsidized independent units and 77 affordable independent units in Plymouth (minus a va- cancy factor of 3% to allow for sufficient consumer choice and turnover). After we subtract the existing units, there is 140 units demand for subsidized units and demand for 150 affordable units in 2017. Adjusting for inflation, we estimate that households with incomes up to $45,000 would be can- didates for financially -assisted independent housing in 2030. We reduce the potential market by homeowner households earning between $40,000 and $44,999 that would exceed income - restrictions once equity from their home sales is converted to monthly income. Following the same methodology, we project demand in Plymouth for 227 subsidized units and 234 affordable units in 2030. MAXFIELD RESEARCH AND CONSULTING 113 Page 125 HOUSING DEMAND ANALYSIS Estimated Demand for Congregate Senior Housing Table HD -4 presents our demand calculations for congregate housing in Plymouth in 2017 and 2030. The potential age- and income -qualified base for congregate senior housing includes all senior (65+) households with incomes of $35,000 as well as homeowner households with incomes be- tween $30,000 and $34,999 who would qualify with the proceeds from the sales of their homes. The proportion of eligible homeowners is based on the 2010 Census homeownership rates of the Plymouth seniors. The number of age, income, and asset -qualified households in Plymouth is estimated to be 5,903 households in 2017. Demand for congregate housing is need -drive, which reduces the qualified market to only the portion of seniors who need some assistance. Adjusting to include appropriate capture rates for each age cohort (1.5% of households age 65 to 74 and 13.0% of households age 75 and older) results in a local demand potential for 337 congregate units in 2017. We estimate that seniors currently residing outside of the Plymouth will generate 25% of the demand for congregate senior housing. Together, the demand from Plymouth seniors and de- mand from seniors who are willing to locate to the Plymouth totals 449 congregate units in 2017. MAXFIELD RESEARCH AND CONSULTING 114 Page 126 TABLE HD -3 DEEP-SUBSIDY/SHALLOW SUBSIDY INDEPENDENT HOUSING DEMAND CITY OF PLYMOUTH 2017 and 2030 2017 2030 Age of Householder Age of Householder 55-64 65-74 75+ 55-64 65-74 75+ 839 884 1,315 # of Households w/ Incomes of <$40,000' 834 1,134 1,819 Less Households w/ Incomes of $35,000 to $39,999' - 135 139 195 - 114 150 229 (times ) Homeownership Rate x 87% 89% 76% x 87% 89% 76% = 722 760 1,167 = 735 1,001 1,645 (equals) Total Potential Market Base (times) Potential Capture Rate x 2.0% 10.0% 20.0% x 2.0% 10.0% 20.0% (equals) Demand Potential - 14 76 233 - 15 100 329 = 324 = 444 (equals) Potential Demand from Residents (plus) Demand from outside Plymouth (30%) + 139 + 190 (equals) Total Demand Potential = 463 = 634 Deep -Subsidy Shallow -Subsidy Deep -Subsidy Shallow -Subsidy (times) % by Product Type x 51% x 49% x 51% x 49% (equals) Demand Potential by Product Type = 323 = 311 = 236 = 227 (minus) Existing and Pending Independent Units' 96 77 96 77 (equals) Excess Demand for Aff/Sub Units - 140 - 150 - 227 - 234 ' 2030 calculations define income -qualified households as all households with incomes less than $45,000. Homeowner households with incomes between $40,000 and $44,999 are excluded from the market potential for financially -assisted housing. ' Existing units are deducted at market equilibrium, or 97% occupancy. Source: Maxfield Research and Consulting LLC Estimated Demand for Congregate Senior Housing Table HD -4 presents our demand calculations for congregate housing in Plymouth in 2017 and 2030. The potential age- and income -qualified base for congregate senior housing includes all senior (65+) households with incomes of $35,000 as well as homeowner households with incomes be- tween $30,000 and $34,999 who would qualify with the proceeds from the sales of their homes. The proportion of eligible homeowners is based on the 2010 Census homeownership rates of the Plymouth seniors. The number of age, income, and asset -qualified households in Plymouth is estimated to be 5,903 households in 2017. Demand for congregate housing is need -drive, which reduces the qualified market to only the portion of seniors who need some assistance. Adjusting to include appropriate capture rates for each age cohort (1.5% of households age 65 to 74 and 13.0% of households age 75 and older) results in a local demand potential for 337 congregate units in 2017. We estimate that seniors currently residing outside of the Plymouth will generate 25% of the demand for congregate senior housing. Together, the demand from Plymouth seniors and de- mand from seniors who are willing to locate to the Plymouth totals 449 congregate units in 2017. MAXFIELD RESEARCH AND CONSULTING 114 Page 126 HOUSING DEMAND ANALYSIS As of September 2017, there are no pending or under construction senior housing projects with congregate units. This results in an overall demand for 355 congregate units. Adjusting for inflation, we estimate that households with incomes of $45,000 or more and sen- ior homeowners with incomes between $40,000 and $44,999 would qualify for congregate housing in 2030. Following the same methodology, demand is calculated to increase to 457 units through 2030. TABLE HD -4 MARKET RATE CONGREGATE RENTAL HOUSING DEMAND CITY OF PLYMOUTH 2017 and 2030 2017 2030 Age of Householder Age of Householder 65-74 75+ 65-74 75+ # of Households w/ Incomes of >$35,000' 3,639 2,024 4,594 2,462 # of Households w/ Incomes of $30,000 to $34,999' + 117 179 + 150 229 (times) Homeownership Rate x 89% 76% x 89% 76% (equals) Total Potential Market Base = 3,743 2,160 = 4,728 2,636 (times) Potential Capture Rate x 1.5% 13.0% x 1.5% 13.0% (equals) Potential Demand = 56 + 281 = 71 + 343 Potential Demand from Plymouth Residents = 337 = 414 (plus) Demand from Outside Plymouth (25%) + 112 + 138 (equals) Total Demand Potential = 449 = 551 (minus) Existing and Pending Congregate Units3 94 94 (equals) Total Congregate Demand Potential = 355 = 457 ' 2030 calculations define income -qualified households as all households with incomes greater than $45,000 and homeowner households with incomes between $40,000 and $44,999. 2The potential capture rate is derived from data from the Summary Health Statistics for the U.S. Population: National Health Interview Survey, 2008 by the U.S. Department of Health and Human Services. The capture rate used is the percentage of seniors needing assistance with IADLs, but not ADLs (seniors needing assistance with ADLs typcially need assistance with multiple IADLs and are primary candidates for service -intensive assisted living). 3 Competitive units include congregate units at 95% occupancy (market equilibrium). Source: Maxfield Research and Consulting LLC MAXFIELD RESEARCH AND CONSULTING 115 Page 127 HOUSING DEMAND ANALYSIS Estimated Demand for Assisted Living Housing Table HD -5 presents our demand calculations for assisted living senior housing in Plymouth in 2017 and 2030. This analysis focuses on the potential private pay/market rate demand for assisted living units. The availability of more intensive support services such as meals, housekeeping and personal care at assisted living facilities usually attracts older, frailer seniors. According to the 2009 Overview of Assisted Living (which is a collaborative research project by the American Association of Homes and Services for the Aging, the American Seniors Housing Association, National Center for Assisted Living, and National Investment Center for the Seniors Housing and Care Industry), the average age of residents in freestanding assisted living facilities was 87 years in 2008. Hence, the age -qualified market for assisted living is defined as seniors ages 75 and over, as we estimate that of the half of demand from seniors under age 87, almost all would be from seniors over age 75. In 2017, there are a projected 4,052 seniors age 75 and older in Plymouth. Demand for assisted living housing is need -driven, which reduces the qualified market to only the portion of seniors who need assistance. According to a study completed by the U.S. Census Bureau (1999 panels of the Survey of Income and Program Participation (SIPP) files), 30% of seniors needed assistance with everyday activities (from 25.5% of 75 -to -79 -year-olds, to 33.6% of 80 -to -84 -year-olds and 51.6% of 85+ year olds). Applying these percentages to the senior population yields a potential assisted living market of 1,658 seniors in Plymouth. Due to the supportive nature of assisted living housing, most daily essentials are included in monthly rental fees, which allow seniors to spend a higher proportion of their incomes on housing with basic services. Therefore, the second step in determining the potential demand for assisted living housing in Plymouth is to identify the income -qualified market based on a senior's ability to pay the monthly rent. We consider seniors in households with incomes of $40,000 or greater to be income -qualified for assisted living senior housing in Plymouth. Households with incomes of $40,000 could afford monthly assisted living fees of $3,000 by allocating 90% of their income toward the fees. According to the 2009 Overview of Assisted Living, the average arrival income of assisted living residents in 2008 was $27,260, while the average annual assisted living fee was $37,281 ($3,107/month). This data highlights that seniors are spending down assets to live in assisted living and avoid institutional care. Thus, in addition to households with incomes of $40,000 or greater, there is a substantial base of senior households with lower incomes who income -qual- ify based on assets —their homes, in particular. Seventy-one percent of the age 75+ households in the Plymouth are homeowners, and the me- dian resale price of homes through 2016 in Plymouth was $325,000. Seniors selling their homes for the median resale price would generate about $302,250 in proceeds after selling costs. With an average monthly fee of $3,000, these proceeds would last about 101 months in MAXFIELD RESEARCH AND CONSULTING 116 Page 128 HOUSING DEMAND ANALYSIS an assisted living facility, which is higher than the average length of stay in assisted living (27 months according to the 2009 Overview of Assisted Living). For each age group in Table HD -5, we estimate the income -qualified percentage to be all seniors in households with incomes above $40,000 (who could afford monthly rents of $3,000+ per month) plus 40% of the esti- mated seniors in homeowner households with incomes below $40,000 (who will spend down assets, including home -equity, in order to live in assisted living housing). This results in a total potential market of 1,177 units in 2017. Because the vast majority of assisted living residents are single (88% according to the 2009 Overview of Assisted Living), our demand methodology multiplies the total potential market by the percentage of seniors age 75+ in Plymouth living alone. Based on 2010 Census data, only 47% of age 75+ households in Plymouth lived alone. Applying this percentage results in a total base of 554 age/income-qualified singles. The 2009 Overview of Assisted Living found that 12% of residents in assisted living were couples. There are a total of 629 age/income-qualified seniors needing assistance in Plymouth including both couples and singles. We estimate that roughly 60% of the qualified market needing significant assistance with Activities of Daily Living ("ADLs") would either remain in their homes or less service -intensive senior housing with the assistance of a family member or home health care, or would need greater care provided in a skilled care facility. The remaining 40% could be served by assisted living housing. Applying this potential market penetration rate of 40% results in demand for 252 assisted living units in 2017. We estimate that a portion of demand for assisted living units (25%) will come from outside of the Plymouth. Applying this figure results in total potential demand for 336 market rate assisted living units in Plymouth. There are a total of 115 assisted living units in Plymouth. After deducting these competitive units (minus a 93% occupancy rate) from the total demand potential, we calculate that there is a demand for 220 assisted living units in the Plymouth in 2017. While incorporating 83 under construction or pending assisted living units, the same calculations are applied to the age/income-qualified base in 2030, resulting in demand for 234 units. MAXFIELD RESEARCH AND CONSULTING 117 Page 129 HOUSING DEMAND ANALYSIS TABLE HD -5 MARKET RATE ASSISTED LIVING DEMAND CITY OF PLYMOUTH 2017 and 2030 2017 2030 Percent Number Percent Number Needing Needing Needing Needing Age group People Assistance' Assistance' People Assistance' Assistance' 75-79 2,067 25.5% 527 3,178 25.5% 810 80-84 1,365 33.6% 459 1,948 33.6% 655 85+ 1,302 51.6% 672 1,726 51.6% 891 Total 4,734 1,658 6,852 2,356 Percent Income-Qualified2 71% 61% Total potential market 1,177 1,437 (times) Percent living alone x 47% 49% (equals) Age/income-qualified singles needing assistance = 554 704 (plus) Proportion of demand from couples (12%)3 + 76 96 (equals) Total age/income-qualified market needing assistance = 629 800 (times) Potential penetration rate x 40% 40% (equals) Potential demand from Plymouth residents = 252 320 (plus) Proportion from outside Plymouth (25%) + 84 107 (equals) Total potential assisted living demand = 336 427 (minus) Existing market rate assisted living units5 115 193 (equals) Total excess market rate assisted living demand = 220 234 ' The percentage of seniors unable to perform or having difficulting with ADLs, based on the publication Health, United States, 1999 Health and Aging Chartbook, conducted by the Centers for Disease Control and Prevention and the National Center for Health Statistics. Z Includes households with incomes of $40,000 or more (who could afford monthly rents of $3,000+ per month) plus 40% of estimated owner households with incomes below $40,000 (who will spend down assets, including home -equity, in order to live in assisted living housing). 3 The 2009 Overview of Assisted Living (a collaborative project of AAHSA, ASHA, ALFA, NCAL & NIC) found that 12% of assisted living residents are couples. 4 We estimate that 60% of the qualified market needing assistance with ADLs could either remain in their homes or reside at less advanced senior housing with the assistance of a family member or home health care, or would need greater care provided in a skilled care facility. S Existing and pending units at 93% occupancy. Source: Maxfield Research and Consulting LLC MAXFIELD RESEARCH AND CONSULTING 118 Page 130 HOUSING DEMAND ANALYSIS Additional demand could come from seniors that will need to receive supplemental income in order to afford assisted living or memory care housing. While some of these seniors will re- ceive income from the sales of their homes, others will need to rely on other sources of public aid. The Elderly Waiver program has provided public funding for seniors who wish to receive "alternative" care that allows them to stay in the community as opposed to receiving similar care at a nursing home. Most assisted living developments require residents to have lived in their facility for a certain amount of time before they can use a waiver, and many try to limit the amount of waivers ac- cepted within the community to around roughly 10% to 20%. Some facilities accept higher amounts of residents on waivers and many newer facilities do not accept any waivers. Estimated Demand for Memory Care Housing Table HD -6 presents our demand calculations for market rate memory care senior housing in Plymouth in 2017 and 2030. Demand is calculated by starting with the estimated Plymouth senior (age 65+) population in 2017 and multiplying by the incidence rate of Alzheimer's/dementia among this population's age cohorts. According to the Alzheimer's Association (Alzheimer's Disease Facts and Figures, 2007), 2% of seniors ages 65 to 74, 19% of seniors ages 75 to 84, and 42% of seniors ages 85+ are inflicted with Alzheimer's Disease. This yields a potential market of 1,320 seniors in Plym- outh in 2017. Because of the staff -intensive nature of dementia care, typical monthly fees for this type of housing are at least $4,000 and range upwards of $5,000 to $6,000 when including service packages. Based on our review of senior household incomes in Plymouth, homeownership rates and home sale data, we estimate that 65% of seniors in Plymouth would have incomes and/or assets to sufficiently cover the costs of memory care housing. This figure takes into ac- count married couple households where one spouse may have memory care needs and allows for a sufficient income for the other spouse to live independently. Multiplying the number of seniors with Alzheimer's/dementia (1,320 seniors) by the income -qualified percentage results in a total of 858 age/income-qualified seniors in the Plymouth in 2017. According to data from the National Institute of Aging, about 25% of all individuals with memory care impairments comprise the market for memory care housing units. This figure considers that seniors in the early stages of dementia will be able to live independently with the care of a spouse or other family member, while those in the later stages of dementia will re- quire intensive medical care that would only be available in skilled care facilities. Applying this figure to the estimated population with memory impairments yields a potential market of about 215 seniors in the Plymouth. MAXFIELD RESEARCH AND CONSULTING 119 Page 131 HOUSING DEMAND ANALYSIS We estimate that 25% of the overall demand for memory care housing would come from out- side of Plymouth. Together, demand totals 286 memory care units in 2017. TABLE HD -6 MARKET RATE MEMORY CARE DEMAND CITY OF PLYMOUTH 2017 and 2030 2017 2030 65 to 74 Population 7,208 9,985 (times) Dementia Incidence Rate' x 2% x 2% (equals) Estimated Age 65 to 74 Pop. with Dementia = 144 = 200 75 to 84 Population 3,367 5,126 (times) Dementia Incidence Rate' x 19% x 19% (equals) Estimated Age 75 to 84 Pop. with Dementia = 640 = 974 85+ Population 1,277 1,726 (times) Dementia Incidence Rate' x 42% x 42% (equals) Estimated Age 85+ Pop. with Dementia = 536 = 725 (equals) Total Senior Population with Dementia = 1,320 = 1,899 (times) Percent Income/Asset-Qualified2 x 65% x 69% (equals) Total Income -Qualified Market Base = 858 = 1,310 (times) Percent Needing Specialized Memory Care Assistance x 25% x 25% (equals) Total Need for Dementia Care = 215 = 328 (plus) Demand from Outside the City of Plymouth (25%) + 72 + 109 Total Demand for Memory Care Units = 286 437 (minus) Existing and Pending Memory Care Units3 113 1 1 157 (equals) Excess Demand Potential = 173 = 279 ' Alzheimer's Association: Alzheimer's Disease Facts & Figures (2007) 2 Includes seniors with income at $60,000 or above ($75,000 in 2030) plus 40% of homeowners with incomes below this threshold (who will spend down assets, including home -equity), in order to live in memory care housing. 3 Existing memory care units at 7% vacancy rate. Source: Maxfield Research and Consulting LLC We reduce the demand potential by accounting for the existing memory care product in Plym- outh. There are a total of 122 units; however, we reduce the competitive units to include memory care units at a 7% vacancy rate. Subtracting these competitive units results in a de- mand for 173 units. The same calculations are applied to the age/income-qualified base in 2030, while incorporating 47 units at a 7% vacancy rate that are under construction or pending. Following the same methodology, potential demand for market rate memory care units is expected to increase to 279 units in Plymouth through 2030. MAXFIELD RESEARCH AND CONSULTING 120 Page 132 RECOMMENDATIONS AND CONCLUSIONS Introduction/Overall Housing Recommendations This section summarizes demand calculated for specific housing products in Plymouth and rec- ommends development concepts to meet the housing needs forecast for the City. All recom- mendations are based on findings of the Comprehensive Rental Housing Market Study. The fol- lowing table and charts illustrate calculated demand by product type. It is important to recog- nize that housing demand is highly contingent on projected household growth and land availa- bility; household growth could be higher if additional acreage was available for housing devel- opment/redevelopment. TABLE CR -1 SUMMARY OF HOUSING DEMAND CITY OF PLYMOUTH September 2017 of Use Rental Units - Market Rate 972 Rental Units - Shallow -Subsidy 408 Rental Units - Deep -Subsidy 188 Total General Occupancy Supportable 1,568 Age -Restricted (Senior) Market Rate Adult Few Services (Active Adult) 475 570 Ownership 214 308 Rental 261 262 Congregate 355 457 Assisted Living 220 234 Memory Care 173 279 Total Market Rate Senior Supportable 1,223 1,541 Sh allo w-Subsidy/Deep-Subsid y Active Adult - Shallow -Subsidy 150 234 Active Adult - Deep -Subsidy 140 227 Total Shallow/Deep-Subsidy Senior Supportable 290 461 Source: Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 121 Page 133 RECOMMENDATIONS AND CONCLUSIONS Rental - Subs. Rental - Aff. Rental - Market General -Occupancy Demand by Type, Plymouth MN 2017 to 2030 0 200 400 600 800 1,000 1,200 Units Senior Housing Demand by Service Level: 2017 & 2030, Plymouth MN Adult - Owner Adult - Rental Congregate Assisted Living Memory Care Deep -Subsidy Shallow - Subsidy 0 100 200 300 400 S00 Units Based on the finding of our analysis and demand calculations, Table CR -2 provides a summary of the recommended development concepts by product type for the City of Plymouth. It is im- portant to note that these proposed concepts are intended to act as a development guide to most effectively meet the housing needs of existing and future households in Plymouth. The recommended development types do not directly coincide with total demand as illustrated in Table CR -1. MAXFIELD RESEARCH AND CONSULTING 122 Page 134 RECOMMENDATIONS AND CONCLUSIONS Recommended Housing Product Types General Occupancy Rental Housing Our competitive inventory identified that the vacancy rates for all types of general occupancy rental product is below market equilibrium (1.6% vacancy rate) indicating pent-up demand for rental housing. Due to the age and positioning of the existing rental supply (pre -1990 construction), a signifi- cant portion of units are priced at or below guidelines for affordable housing, which indirectly satisfies demand from some households that income -qualify for financially assisted housing. MAXFIELD RESEARCH AND CONSULTING 123 Page 13 5 TABLE CR -2 RECOMMENDED HOUSING DEVELOPMENT CITY OF PLYMOUTH 2017 to 2030 No. of No. of No. of Purchase Price/ Units Units Units General Occupancy Rental Housing Monthly Rent Range' 2017-2020 2021-2025 2026-2030 Total Market Rate Rental Housing Apartment -style $1,000/1BR - $2,800/3BR 280 -300 180 -200 350 -400 810-900 Townhomes $2,300/2BR - $2,700/3BR 50 -60 40 -50 30-40 120-150 Total 330-360 220 -250 380-440 930-1,050 Affordable Rental Housing Apartment -style Moderate Income 130-140 100 -120 130 -140 360-400 Subsidized 30% of Income 50 -60 50 -60 50 -60 150-180 Total 180-200 150-180 180-200 510-580 Total Renter -Occupied 510 -560 370 -430 560-640 1,440 - 1,630 Senior Housing Age Restricted) (i.e. Senior Coop./Ownership Active Adult $50,000 - $200,000+ 60 -70 80 -90 90 -100 230-260 Active Adult Market Rate Rentals $1,400/1BR - $2,700/2BR 70 -80 90 -100 80-90 240-270 Active Adult Affordable Rentals Moderate Income' 80 -90 60 -70 80 -90 220-250 Active Adult Subsidized Rentals 30% of Income 50 -60 50 -60 80-90 180-210 Independent Living/Congregate $2,050/1BR - $4,000/2BR 120 -130 140 -150 150-160 410-440 Assisted Living $3,750/EFF - $5,300/2BR 50 -60 70 -80 100 -110 220-250 Memory Care $2,900/EFF - $6,000/2BR 60 -70 70 -80 90-100 220-250 Total Senior Units 490-560 560 -630 670-740 1,720 - 1,930 Total -All Units 1,000 - 1,120 930- 1,060 1,230 - 1,380 3,160 - 3,560 Pricing in 2017 dollars. Pricing can be adjusted to account for inflation. z Replacement need, infill, and redevelopment. 3 Affordablity subject to income guidelines per Minnesota Housing Finance Agency (MHFA). See Table HA -1 for Hennepin County Income limits. 4Subsized housing will be difficult to develop financially 5Alternative development concept is to combine active adult affordable and market rate active adult into mixed -income senior community Note - Recommended development does not coincide with total demand. Plymouth may not be able to accommodate all recommended housing types based on land availability and development constraints. Source: Maxfield Research & Consulting, LLC Recommended Housing Product Types General Occupancy Rental Housing Our competitive inventory identified that the vacancy rates for all types of general occupancy rental product is below market equilibrium (1.6% vacancy rate) indicating pent-up demand for rental housing. Due to the age and positioning of the existing rental supply (pre -1990 construction), a signifi- cant portion of units are priced at or below guidelines for affordable housing, which indirectly satisfies demand from some households that income -qualify for financially assisted housing. MAXFIELD RESEARCH AND CONSULTING 123 Page 13 5 RECOMMENDATIONS AND CONCLUSIONS However, the growing renter base is seeking newer rental properties with additional and up- dated amenities that are not offered in older developments. As a result, there are numerous new market rate apartments buildings with vacancies near or below market equilibrium. Market Rate Rental — Currently, there are no general -occupancy units under construction or planned in the short-term; and there is substantial demand (972 units) found through 2030. As of September 2017, there were only 115 vacancies found among market rate properties for a total vacancy of 1.7% which is well below market equilibrium and suggest the demand for more market rate rental units. Plymouth can accommodate a variety of development types; from higher -density suburban five -story buildings to lower -density townhome rent- als. Because the land supply is dwindling fast in Plymouth, the majority of new construction will likely be multifamily style with densities of at least 12 - 20 units per acre. Affordable General Occupancy Multifamily Housing— There are five affordable rental pro- jects in Plymouth; these developments have been very successful and are all 100% occu- pied as of September 2017. The existing products target households between 50% and 60% of area median income. However, new affordable projects would have income -re- strictions established by HUD and could target households with incomes between 50% to 80% of area median income; however, some could be workforce units with affordability up to 120% AM I. We find that demand exists for about 408 affordable units through 2030. Affordable hous- ing attracts households that cannot afford market rate housing units but do not income - qualify for deep subsidy housing. One -bedroom units target singles and couples, whereas two and three-bedroom units target families. Some retired seniors would also be attracted to an affordable concept. We recommend an affordable concept that would target resi- dents at 50% to 60% AMI. Demand is strong for both stand-alone tax credit projects and for mixed -income market rate developments that have a small proportion of units at 50% to 60% AMI. Similar to market rate general -occupancy rental housing, new affordable development will likely oc- cur in multifamily development with higher densities. Subsidized General Occupancy Multifamily Housing— There are four subsidized rental pro- jects in Plymouth; these developments also are all 100% occupied as of September 2017. The existing products target households at 30% Adjusted Gross Income (AGI). These prop- erties should consist of the standard one- & two-bedroom unit types but should also in- clude some three- & four-bedroom units for families with children. However, because of lack of funding sources for subsidized housing it will be exceptionally challenging to de- velop future deep subsidy projects. MAXFIELD RESEARCH AND CONSULTING 124 Page 136 RECOMMENDATIONS AND CONCLUSIONS Senior Housing As illustrated in Table CR -1, demand exists for all types of senior housing product types in Plym- outh. Over the course of the next decade, there is demand for roughly 2,000 new senior units through 2030. The unmet of additional senior housing is recommended in order to provide housing opportunity to these aging residents in their stages of later life. The development of additional senior housing serves a two -fold purpose in meeting the housing needs in Plymouth: older adult and senior residents are able to relocate to new age -restricted housing in Plymouth, and existing homes and rental units that were occupied by seniors become available to other new households. Hence, development of additional senior housing does not mean the housing needs of younger households are neglected; it simply means that a greater percentage of hous- ing need is satisfied by housing unit turnover. The types of housing products needed to accom- modate the aging population base are discussed individually in the following section. Active Adult Rental — Demand was projected for about 262 market rate active adult rental units in Plymouth through 2030. Currently, there is only one market rate rental active adult products in Plymouth; Vicksburg Crossing which has 61 market rate units. Development of this product could be in a separate stand-alone facility or in a mixed -in- come project. A mixed -income building could include a portion of units that would be af- fordable to seniors with incomes established the Minnesota Housing Finance Agency. We recommend a new project of about 70 to 80 units later this decade. The project modest rents with base monthly rents starting at $1,400 per month for one -bedroom units and from $2,700 or more for two-bedroom units. The project should offer transportation, activ- ities, and optional services for housekeeping, etc. Active Adult Senior Cooperative/Owner— There are three senior age -restricted for -sale de- velopments in Plymouth at this time — Cornerstone Cooperative which has 77 units, Gra- mercy Park Cooperative Northwest also with 77 units, and Gramercy Park of Plymouth with 56 units. Maxfield Research and Consulting, LLC projected demand for 308 active adult ownership units through 2030. The cooperative model, in particular, appeals to a larger base of potential residents in that it has characteristics of both rental and ownership hous- ing. Cooperative developments allow prospective residents an ownership option and homestead tax benefits without a substantial upfront investment as would be true in a condominium development or life care option. Maxfield Research & Consulting, LLC has found the cooperative model to be very well -accepted in suburban communities in the Twin Cities Metro Area and across the Midwest. As such, we recommend a 60 to 70 -unit senior cooperative later this decade with sliding scale share costs starting at about $50,000. MAXFIELD RESEARCH AND CONSULTING 125 Page 137 RECOMMENDATIONS AND CONCLUSIONS Affordable/Subsidized Active Adult Rental —Plymouth's demand for affordable and subsi- dized senior housing is approximately 234 affordable units and 227 subsidized units through 2030. Although this product would be well received by seniors in and near the Plymouth area; it can be difficult to develop given financing challenges and development costs. Af- fordable senior housing will likely be a low-income tax credit project through the Minnesota Housing Finance Agency (MHFA). MHFA recently started to consider affordable senior housing projects under the tax credit program and is slowly starting to expand financing for this product type. Affordable/subsidized senior housing products can also be incorporated into a mixed -income building which may increase the projects financial feasibility. Independent Living/Congregate — There are two designated congregate units (meals and limited support service) in Plymouth, The Waters of Plymouth with 31 units and Summer Wood of Plymouth with 68 units. Demand was calculated for upwards of 457 congregate units through 2030. Based on this demand, multiple projects could be supported in the community to meet this forthcoming demand. The approved Agora senior project would meet a portion of this demand if the project moves forward. We recommend a mix of one - bedroom, one -bedroom plus den, and two-bedroom units. Base monthly rents should range from $2,000 for one -bedroom units to $4,000 for two-bedroom units. The monthly fees should include all utilities (except telephone and basic cable/satellite television) and the following services: • I'm OK program; • Daily noon meal; • Regularly scheduled van transportation; • Social, health, wellness and educational programs; • 24-hour emergency call system; and • Complimentary use of laundry facilities. In addition, meals and other support and personal care services will be available to congre- gate residents on a fee-for-service basis, such as laundry, housekeeping, etc. When their care needs increase, residents also have the option of receiving assisted living packages in their existing units. New independent housing could be developed adjacent to an existing senior project or in a stand-alone development. Assisted Living and Memory Care Senior Housing — Based on our analysis, there is substan- tial demand for assisted living and memory care in Plymouth through 2030. We project de- mand to support an additional 234 assisted living units and 279 memory care units through 2030. Although we find strong demand today, the demand will grow with each subsequent year as the baby boomers start to desire services next decade. Demand will be strongest after 2020. MAXFIELD RESEARCH AND CONSULTING 126 Page 138 RECOMMENDATIONS AND CONCLUSIONS We recommend assisted living units include a mix of studio, and one -bedroom, and a few two-bedroom units with base monthly rents ranging from $3,750 to $5,300. Memory care unit mix should be mostly studios and one -bedroom units with a few two-bedroom units for couples with base monthly rents ranging from $2,900 to $6,000. Memory care units should be located in a secured, self-contained wing located on the first floor of a building and should feature its own dining and common area amenities including a secured outdoor patio and wandering area. The base monthly fees should include all utilities (except telephone and basic cable/satel- lite television) and the following services: • Three meals per day; • Weekly housekeeping and linen service; • Two loads of laundry per week; • Weekly health and wellness clinics; • Meal assistance; • Regularly scheduled transportation; • Professional activity programs and scheduled outings; • Nursing care management; • I'm OK program; • 24-hour on site staffing; • Personal alert pendant with emergency response; and • Nurse visit every other month. Additional personal care packages should also be available for an extra monthly charge above the required base care package. A care needs assessment is recommended to be conducted to determine the appropriate level of services for prospective residents. MAXFIELD RESEARCH AND CONSULTING 127 Page 139 CHALLENGES AND OPPORTUNITIES Challenges and Opportunities Table CR -2 identified and recommended housing types that would satisfy the housing needs in Plymouth over the next thirteen years. The following were identified as the greatest challenges and opportunities for developing the recommended housing types (in no particular order - al- phabetically). Age of Housing Stock. As illustrated in the Housing Characteristics Section of the report (Ta- ble HC -3, the median year built for a home in Plymouth is 1965 and about 35% of the hous- ing stock was built prior to 1980. Although the housing stock is newer compared to other inner -ring suburban communities, a portion of the housing stock in Plymouth may be in need of remodeling programs that reinvestment into the city's owner and renter housing stock. Affordability. As illustrated in Table HA -5, most householders (84%) can afford the average market rate rent for a one -bedroom at an existing rental project ($950) in Plymouth. How- ever, when adjusted for rental household incomes the affordability decreases as 65% of renters could afford a one -bedroom rent of $1,300. Because of the higher rent structures at the new market rental buildings being constructed in Plymouth, the minimum incomes needed to afford a luxury rental are significantly higher than that of the existing rental housing stock in Plymouth. The new rental housing development target "lifestyle renters" or those with higher incomes who have enough money to buy a house but choose to rent for the convenience and lifestyle. Many of these renters may be cost burdened, but they choose so for the location, amenities, and proximity to transit. MAXFIELD RESEARCH AND CONSULTING 128 Page 140 All Housing Units Built by Decade City of Plymouth 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Ln � A o <1940s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010+ Decade of Construction Affordability. As illustrated in Table HA -5, most householders (84%) can afford the average market rate rent for a one -bedroom at an existing rental project ($950) in Plymouth. How- ever, when adjusted for rental household incomes the affordability decreases as 65% of renters could afford a one -bedroom rent of $1,300. Because of the higher rent structures at the new market rental buildings being constructed in Plymouth, the minimum incomes needed to afford a luxury rental are significantly higher than that of the existing rental housing stock in Plymouth. The new rental housing development target "lifestyle renters" or those with higher incomes who have enough money to buy a house but choose to rent for the convenience and lifestyle. Many of these renters may be cost burdened, but they choose so for the location, amenities, and proximity to transit. MAXFIELD RESEARCH AND CONSULTING 128 Page 140 CHALLENGES AND OPPORTUNITIES • Aging Population/City Services. As illustrated in Table D-2, there is significant growth in the Plymouth senior population, especially among ages 75 to 84 (+32% growth through 2022). In addition, Table D-6 shows the Plymouth homeownership rates among seniors 65+ is ap- proximately 83%. High homeownership rates among seniors indicate there could be lack of senior housing options, or simply that many seniors prefer to live in their home and age in place. Because of the rising population of older adults, demand for alternative mainte- nance -free housing products should be rising. In addition, demand for home health care services and home remodeling programs to assist seniors with retrofitting their existing homes should also increase. MAXFIELD RESEARCH AND CONSULTING 129 Page 141 Senior Home Ownership Rate: 2015 Plymouth, MN 100.0% - 89.0 90.0% 81.4% y 80.0% 70.0% ° CL s N 60.0% = 50.0% 0 40.0% £ 30.0% 0 = 20.0% 10.0% 0.0% 65-74 75-84 85+ Age Range MAXFIELD RESEARCH AND CONSULTING 129 Page 141 CHALLENGES AND OPPORTUNITIES The following chart illustrates the historic and projected growth rates of the senior (ages 65+) population in the seven -county Metro Area. At present, seniors account for about 13.5% of the Twin Cities population in 2017 which is projected to double over the next two decades. By 2040, 27% of the population in the Twin Cities (993,000+) will be 65 and nearly 75% of all seniors in the State of Minnesota will be residing in the Metro Area. Metro Area 65+ Population J 30.0% The vast majority of older adults desire to stay in their home as they age. Because many seniors will remain in their homes, these households will desire various services such as re- modeling/home modifications, snow removal, lawn care, transportation, home health care, etc. Many of these older adults and boomers will also desire to "down size or right size" from single-family homes into maintenance -free options with fewer stair and upkeep. At the same time, there is a growing demand for seniors residing with relatives (primarily chil- dren) increasing the demand for multi -generational households. Because of the anticipated increase in multi -generational households, the demand for ac- cessory dwelling units (ADU) will increase; more commonly termed "granny flats" or "in-law apartments." Granny flats are designed for 1-2 persons and are a separate structure from the single-family home and are receiving more attention today in part because of the tiny house trend on home improvement shows. Granny flats provide affordability and inde- pendence for seniors and allow many seniors to age in place. MAXFIELD RESEARCH AND CONSULTING 130 Page 142 1,200,000 1,000,000 800,000 CL 0 CL 600,000 Ln 400,000 200,000 1 0 1980 1990 Metro Area 65+ Population J 30.0% The vast majority of older adults desire to stay in their home as they age. Because many seniors will remain in their homes, these households will desire various services such as re- modeling/home modifications, snow removal, lawn care, transportation, home health care, etc. Many of these older adults and boomers will also desire to "down size or right size" from single-family homes into maintenance -free options with fewer stair and upkeep. At the same time, there is a growing demand for seniors residing with relatives (primarily chil- dren) increasing the demand for multi -generational households. Because of the anticipated increase in multi -generational households, the demand for ac- cessory dwelling units (ADU) will increase; more commonly termed "granny flats" or "in-law apartments." Granny flats are designed for 1-2 persons and are a separate structure from the single-family home and are receiving more attention today in part because of the tiny house trend on home improvement shows. Granny flats provide affordability and inde- pendence for seniors and allow many seniors to age in place. MAXFIELD RESEARCH AND CONSULTING 130 Page 142 CHALLENGES AND OPPORTUNITIES The demand for senior services will increase and today's boomers will have higher expecta- tions. Senior programming was historically tied to a senior center; however, today's active seniors want to walk, run, bike, play tennis or pickleball, and want proximity to cultural amenities and transit. As people age, they generally drive less and rely more on transit and walking. Many seniors will eventually decide to own only one car and will seek walkable neighborhoods and convenient access to transit, commercial goods and services, health care, and cultural and recreational activities. Finally, seniors desire to live in close proximity to their adult children and grandchildren. Plymouth has a large population of adult children and vibrant schools, which will aid future senior housing growth in Plymouth. Although service needs change as people age; seniors can be a fiscal plus to cities as they generate tax revenue but not students attending public school. Seniors are typically less de- pendent on automobiles, and rely more on walking, biking and on public transit. At the same time, seniors will desire other services such as library usage, community center/fit- ness centers, and first responder calls. Generally, service -intensive senior housing buildings generate a higher volume of emergency calls than other residential land uses. On average, it is estimated a senior housing building will generate 1 call per unit per year. We recom- mend Plymouth consider policies that will assist the housing and service needs of seniors in the future. • Housing Resources & Programs. Many communities and local Housing and Redevelopment Authorities (HRAs) offer programs to promote and preserve the existing housing stock. In addition, there are various regional and state organizations that assist local communities enhance their housing stock. The City of Plymouth utilizes numerous housing programs, in- cluding Architectural Design Service, Community Fix Up Loans, Emergency Repair Grant Fund, First—Time Homebuyer, Foreclosure Prevention, Home Improvement Deferred Loan, Rehabilitation Loans, and Reverse Mortgage Assistance, among other housing programs and services. The following is a sampling of potential programs that could be explored to aid and improve Plymouth's housing stock. o Construction Management Services — Assist homeowners regarding local building codes, reviewing contractor bids, etc. Typically provided as a service by the building depart- ment. This type of service could also be rolled into various remodeling related pro- grams. o Corridor Housing Program - Program where city provides a funding source to acquire sites for multifamily housing development on or near community, commercial, or transit corridors. Funds can also be utilized to assemble larger redevelopment sites for new mixed -income and ownership multifamily housing. At least 20% of the units need to be affordable. Typically located near a TOD or BRTOD location. o Density Bonuses — Since the cost of land is a significant barrier to housing affordability, increasing densities can result in lower housing costs by reducing the land costs per unit. The City of Plymouth can offer density bonuses as a way to encourage higher -density residential development while also promoting an affordable housing component. MAXFIELD RESEARCH AND CONSULTING 131 Page 143 CHALLENGES AND OPPORTUNITIES o Fast Track Permitting — Program designed to reduce delays during the development process that ultimately add to the total costs of housing development. By expediting the permitting process costs can be reduced to developers while providing certainty into the development process. Typically, no -cost to the local government jurisdiction. o Home Improvement Area (HIA) - HIAs allow a townhome or condo association low inter- est loans to finance improvements to common areas. Unit owners repay the loan through fees imposed on the property, usually through property taxes. Typically, a "last resort" financing tool when associations are unable to obtain traditional financing due to the loss of equity from the real estate market or deferred maintenance on older properties. o Inclusionary Housing — Inclusionary housing policies and programs rely on private sector housing developers to create affordable housing as they develop market rate projects. Inclusionary zoning encourages or mandates the inclusion of a set proportion of afforda- ble housing units in each new market rate housing development above a certain size. These programs are popular approaches for local and state governments, in high cost urban areas to encourage the development of affordable housing. o Infill Lots — The City or HRA purchase blighted or substandard housing units from willing sellers. After the home has been removed, the vacant land is placed into the program for future housing redevelopment. Future purchasers can be builders or the future owner -occupant who has a contract with a builder. Typically, all construction must be completed within an allocated time -frame (one year in most cases). o Land Banking — Land Banking is a program of acquiring land with the purpose of devel- oping at a later date. After a holding period, the land can be sold to a developer (often at a price lower than market) with the purpose of developing affordable housing. o Live Where You Work - Program designed to promote homeownership in the same community where employees work. City provides a grant to eligible employees to pur- chase a home near their workplace. Employers can also contribute or match the city's contribution. Participants must obtain a first mortgage through participating lenders. The grant can be allocated towards down payment assistance, closing costs, and gap fi- nancing. Some restrictions apply (i.e. length of employment, income, home buyer edu- cation, etc.) o Realtor Forum - Typically administered by City with partnership by local school board, Inform local Realtors about school district news, current development projects, and other marketing factors related to real estate in the community. In addition, Realtors usually receive CE credits. o Remodeling Tours - City -driven home remodeling tour intended to promote the en- hancement of the housing stock through home renovations/additions. Homeowners open their homes to the public to showcase home improvements. o Rent to Own - Income -eligible families rent for a specified length of time with the end - goal of buying a home. The HRA saves a portion of the monthly rent that will be allo- cated for a down payment on a future house. o Shallow Rent Subsidy: The HRA funds a shallow rent subsidy program to provide pro- gram participants living in market rate rentals a rent subsidy (typically about $100 to $300 per month). MAXFIELD RESEARCH AND CONSULTING 132 Page 144 CHALLENGES AND OPPORTUNITIES o Tax Increment Financing (TIF): Program that offers communities a flexible financing tool to assist housing projects and related infrastructure. TIF enables communities to dedi- cate the incremental tax revenues from new housing development to help make the housing more affordable or pay for related costs. TIF funds can be used to provide a di- rect subsidy to a particular housing project or they can also be used to promote afforda- ble housing by setting aside a portion of TIF proceeds into a dedicated fund from other developments receiving TIF. o Transfer of Development Rights — Transfer of Development Rights (TDR) is a program that shifts the development potential of one site to another site or different location, even a different community. TDR programs allow landowners to sever development rights from properties in government -designated low-density areas, and sell them to purchasers who want to increase the density of development in areas that local govern- ments have selected as higher density areas. o Waiver or Reduction of Development Fees —There are several fees developers must pay including impact fees, utility and connection fees, park land dedication fees, etc. To help facilitate affordable housing, some fees could be waived or reduced to pass the cost savings onto the housing consumer. • Job Growth/Employment/Inflow. Historically, low unemployment rates have driven both existing home purchases and new -home purchases. Lack of job growth leads to slow or di- minishing household growth, which in -turn relates to reduced housing demand. Like most areas across the Twin Cities and Minnesota, the unemployment rate peaked in 2009 during the Great Recession at 9.1%. However, over the past 8 years the unemployment rate has decreased annually and is presently at only 3.1% in Plymouth through 2016. Although the low unemployment rate is positive, if the unemployment rate continues to decline it could be difficult for Plymouth businesses to find enough labor to fill job openings. In addition, Plymouth is home to many large companies that are job generators in the Twin Cities. Nearly 90% of the jobs in Plymouth are filled by non-residents of the community. As a result, there is a tremendous opportunity to capture these workers as residents and em- ployees in the City of Plymouth. • Land Supply (Dwindling). The City of Plymouth continues to develop and with each passing year has fewer areas that can accommodate single-family and multifamily residential devel- opment. Most of the vacant land is located in the northwest sector of Plymouth and most this land will be developed over the next decade. As a result, many of the housing concepts identified on Table CR -1 may have to seek out infill or redevelopment sites. As the land sup- ply dwindles upward pressure on land costs will likely ensue resulting in higher acquisition costs for development that may drive up the consumer's price on housing. Lender -mediated Properties. Lender -mediated properties in Plymouth have declined sub- stantially since the housing downturn and Great Recession of last decade. Lender mediated properties (i.e. foreclosures and short sales) accounted for 20% to 30% of transactions in between 2009 and 2012 before declining annually since and comprising about 4.4% of MAXFIELD RESEARCH AND CONSULTING 133 Page 145 CHALLENGES AND OPPORTUNITIES transactions in 2016. Plymouth experienced far fewer foreclosures than many communities across the Metro Area that experienced much higher rates of short sales and foreclosures. The continued decline in lender -mediated properties will enhance the overall real estate market and pricing will continue to gain from all the losses of last decade. As most home- owners have regained lost equity, the Plymouth housing market should continue to experi- ence stronger velocity as existing homeowners who were unable to move now may have the equity to pursue a trade -up home. Plymouth Lender -Mediated Sales: 2005-2016 300 35.0% 250 — 30.0% 25.0% 200 20.0% 150 15.0% 100 — 10.0% 50 5.0% 0 W. 0.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 ■ Lender Med. Resales Pct. • Mortgage Rates. Mortgage rates play a crucial part in housing affordability. Lower mort- gage rates result in a lower monthly mortgage payment and buyers receiving more home for their dollar. Rising interest rates often require homebuyers to raise their down payment in order to maintain the same housing costs. Mortgage rates have remained at historic lows over the past several years coming out of the Great Recession. The Federal Reserve has raised the short-term interest rate only twice since the recession; however, they have hinted at rates increasing in 2017. However, at this time it is unknown if the central bank will raise rates to head off inflation. A significant increase in rates (+1% or more; over 5% in the short term) would greatly affect the housing market and would slow projected for -sale housing demand. The following chart illustrates historical mortgage rate averages as compiled by Freddie Mac. The Freddie Mac Market Survey (PMMS) has been tracking mortgage rates since 1971 and is the most relied upon benchmark for evaluating mortgage interest market conditions. The Freddie Mac survey is based on 30 -year mortgages with a loan -to -value of 80%. MAXFIELD RESEARCH AND CONSULTING 134 Page 146 CHALLENGES AND OPPORTUNITIES 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Historic 30 -year Mortgage Rates 1972 to 2017 YTD r1r1r1°r° W W W W 0000 M M M M M 0 0 0 0-1-1-1 `-1 m rn rn rn rn rn rn rn rn rn rn rn rn M 0 0 0 0 0 0 0 0 0 ri ri rl ri ri ri ri ri ri ri ri ri ri -1 N N N N N N N N N • Millennials. The Millennials (generally defined as persons born in the 1980 and 1990s) are now bigger than the Baby Boom generation and have begun impacting real estate develop- ment. The 80 million Millennials have begun to influence real estate as they formed new households. However, many Millennials' are delaying home ownership due to high student loan debt and social changes (i.e. delayed marriage, delayed childbearing, delayed careers, etc.). The median first-time home buyer is now age 32 (an older Millennial) which is up from age 30 about a decade ago. Increasing monthly rents for rental housing in the Twin Cities has also affected the ability of Millennial's to save for a down payment and qualify for a mortgage. Although Millennial's have favored more urban locations and are typically renters today, survey's show they are not that different in their preferences from other generations. Many millennials' have indicated they still desire to live in the suburbs, however they desire communities with amenities such as parks, walking trails, shopping, proximity to jobs, and entertainment. Once Millennial's start having kids, many will begin households that will shift from renters to buyers. Because Plymouth has strong employment and relatively affordable older housing stock compared to other inner -ring suburban areas, we believe there is an opportunity to capture the Millennials in Plymouth from households currently residing in other inner -ring areas seeking more housing value for their dollar. MAXFIELD RESEARCH AND CONSULTING 135 Page 147 CHALLENGES AND OPPORTUNITIES Naturally Occurring Affordable Housing/Preservation. As illustrated in Table R-8 in the Rental Market Analysis section, about 46% of the market rate rental housing stock in Plym- outh is affordable at 50% to 60% of area median incomes. According to the Harvard's Joint Center for Housing Studies (JCHS) unsubsidized rentals account for more than 75% of the affordable housing stock in the United States. It is estimated that over one-third of the nat- urally occurring affordable housing stock is composed of smaller multifamily buildings from 5 to 49 units. Within the Twin Cities Metro Area, it is estimated that about 60% of the rental stock is unsubsidized rentals affordable to households at or below 50% AMI. Because the unsubsidized housing market is unregulated and is fluid, there is the chance some affordable market rate units could be lost. New construction costs for apartments in Plymouth will likely exceed $200,000 per unit; whereas an older Class B or Class C rental building may be acquired for under $100,000 per unit. Therefore, it is typically more eco- nomical to rehabilitate an existing property than build a new one. Because of the high cost of new construction, we recommend the City monitor and maintain the unsubsidized rental market as an effort to maintain the affordable housing product type. • Shadow Rental Inventory. Shadow rentals are generally considered nontraditional rentals that were previously owner -occupied single-family homes, townhomes, or condominiums. The shadow market has originally particularly fueled by homeowners who lost their home to foreclosure after the recession who opt to not rent in a traditional rental complex. Typi- cally, short sales and foreclosures between 2009 and 2012 resulted in substantial price re- ductions which allowed buyers or investors to charge rents below market while still main- taining a profit. Although the shadow market rentals tend to be more affordable, renters run the risk of evictions if the owner does not pay the mortgage. Because the City of Plymouth enforces rental licenses, the City has been able to monitor the number of non-traditional rental units in the community. According to Table HC -4, there are about 1,915 one- and two -unit homes in Plymouth serving as rental properties (22% of rental housing stock). As the housing market continues to rebound, many of these proper- ties will likely transition back to the for -sale market. Plymouth should continue to monitor the shadow rental market to mitigate any problem properties and improve the overall rental housing stock. MAXFIELD RESEARCH AND CONSULTING 136 Page 148 APPENDIX MAXFIELD RESEARCH AND CONSULTING 137 Page 149 APPENDIX Definitions Absorption Period — The period of time necessary for newly constructed or renovated proper- ties to achieve the stabilized level of occupancy. The absorption period begins when the first certificate of occupancy is issued and ends when the last unit to reach the stabilized level of oc- cupancy has signed a lease. Absorption Rate — The average number of units rented each month during the absorption pe- riod. Active adult (or independent living without services available) — Active Adult properties are similar to a general -occupancy apartment building, in that they offer virtually no services but have age -restrictions (typically 55 or 62 or older). Organized activities and occasionally a trans- portation program are usually all that are available at these properties. Because of the lack of services, active adult properties typically do not command the rent premiums of more service - enriched senior housing. Adjusted Gross Income "AGI" — Income from taxable sources (including wages, interest, capital gains, income from retirement accounts, etc.) adjusted to account for specific deductions (i.e. contributions to retirement accounts, unreimbursed business and medical expenses, alimony, etc.). Affordable housing — Housing that is income -restricted to households earning at or below 80% AMI, though individual properties can have income -restrictions set at 40%, 50%, 60% or 80% AMI. Rent is not based on income but instead is a contract amount that is affordable to house- holds within the specific income restriction segment. It is essentially housing affordable to low or very low-income tenants. Amenity — Tangible or intangible benefits offered to a tenant in the form of common area amenities or in -unit amenities. Typical in -unit amenities include dishwashers, washer/dryers, walk-in showers and closets and upgraded kitchen finishes. Typical common area amenities in- clude detached or attached garage parking, community room, fitness center and an outdoor pa- tio or grill/picnic area. Area Median Income "AMI" — AMI is the midpoint in the income distribution within a specific geographic area. By definition, 50% of households earn less than the median income and 50% earn more. The U.S. Department of Housing and Urban Development (HUD) calculates AMI an- nually and adjustments are made for family size. Assisted Living — Assisted Living properties come in a variety of forms, but the target market for most is generally the same: very frail seniors, typically age 80 or older (but can be much younger, depending on their particular health situation), who are in need of extensive support services and personal care assistance. Absent an assisted living option, these seniors would otherwise need to move to a nursing facility. At a minimum, assisted living properties include MAXFIELD RESEARCH AND CONSULTING 138 Page 150 APPENDIX two meals per day and weekly housekeeping in the monthly fee, with the availability of a third meal and personal care (either included in the monthly fee or for an additional cost). Assisted living properties also have either staff on duty 24 hours per day or at least 24-hour emergency response. Building Permit — Building permits track housing starts and the number of housing units author- ized to be built by the local governing authority. Most jurisdictions require building permits for new construction, major renovations, as well as other building improvements. Building permits ensure that all the work meets applicable building and safety rules and is typically required to be completed by a licensed professional. Once the building is complete and meets the inspec- tor's satisfaction, the jurisdiction will issue a "CO" or "Certificate of Occupancy." Building per- mits are a key barometer for the health of the housing market and are often a leading indicator in the rest of the economy as it has a major impact on consumer spending. Capture Rate —The percentage of age, size, and income -qualified renter households in a given area or "Market Area" that the property must capture to fill the units. The capture rate is cal- culated by dividing the total number of units at the property by the total number of age, size and income -qualified renter households in the designated area. Comparable Property — A property that is representative of the rental housing choices of the designated area or "Market Area" that is similar in construction, size, amenities, location and/or age. Concession — Discount or incentives given to a prospective tenant to induce signature of a lease. Concessions typically are in the form of reduced rent or free rent for a specific lease term, or free amenities, which are normally charged separately, such as parking. Congregate (or independent living with services available) — Congregate properties offer sup- port services such as meals and/or housekeeping, either on an optional basis or a limited amount included in the rents. These properties typically dedicate a larger share of the overall building area to common areas, in part, because the units are smaller than in adult housing and in part to encourage socialization among residents. Congregate properties attract a slightly older target market than adult housing, typically seniors age 75 or older. Rents are also above those of the active adult buildings, even excluding the services. Contract Rent — The actual monthly rent payable by the tenant, including any rent subsidy paid on behalf of the tenant, to the owner, inclusive of all terms of the lease. Demand —The total number of households that would potentially move into a proposed new or renovated housing project. These households must be of appropriate age, income, tenure and size for a specific proposed development. Components vary and can include, but are not lim- ited to: turnover, people living in substandard conditions, rent over -burdened households, in- come -qualified households and age of householder. Demand is project specific. MAXFIELD RESEARCH AND CONSULTING 139 Page 151 APPENDIX Density— Number of units in a given area. Density is typically measured in dwelling units (DU) per acre — the larger the number of units permitted per acre the higher the density; the fewer units permitted results in lower density. Density is often presented in a gross and net format: • Gross Density — The number of dwelling units per acre based on the gross site acreage. Gross Density = Total residential units/total development area • Net Density - The number of dwelling units per acre located on the site, but excludes public right-of-way (ROW) such as streets, alleys, easements, open spaces, etc. Net Density = Total residential units/total residential land area (excluding ROWS) Detached housing — a freestanding dwelling unit, most often single-family homes, situated on its own lot. Effective Rents — Contract rent less applicable concessions. Elderly or Senior Housing — Housing where all the units in the property are restricted for occu- pancy by persons age 62 years or better, or at least 80% of the units in each building are re- stricted for occupancy by households where at least one household member is 55 years of age or better and the housing is designed with amenities, facilities and services to meet the needs of senior citizens. Extremely low-income — person or household with incomes below 30% of Area Median In- come, adjusted for respective household size. Fair Market Rent — Estimates established by HUD of the Gross Rents needed to obtain modest rental units in acceptable conditions in a specific geographic area. The amount of rental income a given property would command if it were open for leasing at any given moment and/or the amount derived based on market conditions that is needed to pay gross monthly rent at mod- est rental housing in a given area. This figure is used as a basis for determining the payment standard amount used to calculate the maximum monthly subsidy for families on at financially assisted housing. Fair Market Rent — Hennepin County 2017 Fair Market Rent EFF 1BR 2BR 3BR 4BR Fair Market Rent $699 $862 $1,086 $1,538 $1,799 Floor Area Ratio (FAR) Ratio of the floor area of a building to area of the lot on which the build- ing is located. MAXFIELD RESEARCH AND CONSULTING 140 Page 152 APPENDIX Foreclosure — A legal process in which a lender or financial institute attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by using the sale of the house as collateral for the loan. Gross Rent — The monthly housing cost to a tenant which equals the Contract Rent provided for in the lease, plus the estimated cost of all utilities paid by tenants. Maximum Gross Rents for Hennepin County in 2016 are as follows: Gross Rent Hennepin County — 2017 Household — All persons who occupy a housing unit, including occupants of a single-family, one person living alone, two or more families living together, or any other group of related or unre- lated persons who share living arrangements. Household Trends — Changes in the number of households for any particular areas over a measurable period of time, which is a function of new household's formations, changes in aver- age household size, and met migration. Housing Choice Voucher Program — The federal government's major program for assisting very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. A family that is issued a housing voucher is responsible for finding a suit- able housing unit of the family's choice where the owner agrees to rent under the program. Housing choice vouchers are administered locally by public housing agencies. They receive fed- eral funds from the U.S. Department of Housing and Urban Development (HUD) to administer the voucher program. A housing subsidy is paid to the landlord directly by the public housing agency on behalf of the participating family. The family then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program. Housing unit — House, apartment, mobile home, or group of rooms used as a separate living quarters by a single household. HUD Project -Based Section 8 — A federal government program that provides rental housing for very low-income families, the elderly, and the disabled in privately owned and managed rental MAXFIELD RESEARCH AND CONSULTING 141 Page 153 Maximum Gross Rent 1BR 2BR 77_1EFF 36R 46R 30% of median $474 $543 $610 $678 $732 50% of median $791 $905 $1,017 $1,130 $1,221 60% of median $949 $1,086 $1,221 $1,356 $1,465 80% of median $1,266 $1,448 $1,628 $1,808 $1,954 100% of median $1,582 $1,810 $2,035 $2,260 $2,442 120% of median $1,899 $2,172 $2,442 $2,712 $2,931 Household — All persons who occupy a housing unit, including occupants of a single-family, one person living alone, two or more families living together, or any other group of related or unre- lated persons who share living arrangements. Household Trends — Changes in the number of households for any particular areas over a measurable period of time, which is a function of new household's formations, changes in aver- age household size, and met migration. Housing Choice Voucher Program — The federal government's major program for assisting very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. A family that is issued a housing voucher is responsible for finding a suit- able housing unit of the family's choice where the owner agrees to rent under the program. Housing choice vouchers are administered locally by public housing agencies. They receive fed- eral funds from the U.S. Department of Housing and Urban Development (HUD) to administer the voucher program. A housing subsidy is paid to the landlord directly by the public housing agency on behalf of the participating family. The family then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program. Housing unit — House, apartment, mobile home, or group of rooms used as a separate living quarters by a single household. HUD Project -Based Section 8 — A federal government program that provides rental housing for very low-income families, the elderly, and the disabled in privately owned and managed rental MAXFIELD RESEARCH AND CONSULTING 141 Page 153 APPENDIX units. The owner reserves some or all of the units in a building in return for a Federal govern- ment guarantee to make up the difference between the tenant's contribution and the rent. A tenant who leaves a subsidized project will lose access to the project -based subsidy. HUD Section 202 Program - Federal program that provides direct capital assistance and operat- ing or rental assistance to finance housing designed for occupancy by elder household who have incomes not exceeding 50% of Area Median Income. HUD Section 811 Program - Federal program that provides direct capital assistance and operat- ing or rental assistance to finance housing designed for occupancy of persons with disabilities who have incomes not exceeding 50% Area Median Income. HUD Section 236 Program - Federal program that provides interest reduction payments for loans which finance housing targeted to households with income not exceeding 80% Area Me- dian Income who pay rent equal to the greater or market rate or 30% of their adjusted income. Income limits - Maximum household's income by a designed geographic area, adjusted for household size and expressed as a percentage of the Area Median Income, for the purpose of establishing an upper limit for eligibility for a specific housing program. Income Limits by Household Size 1 pph 2 pph 3 pph 4 pph 5 pph 6 pph 7 pph 8 pph 30% of median $18,990 $21,720 $24,420 $27,120 $29,310 $31,470 $33,630 $35,820 50% of median $31,650 $36,200 $40,700 $45,200 $48,850 $52,450 $56,050 $59,700 60% of median $37,980 $43,440 $48,840 $54,240 $58,620 $62,940 $67,260 $71,640 80% of median $50,640 $57,920 $65,120 $72,320 $78,160 $83,920 $89,680 $95,520 100% of median $63,300 $72,400 $81,400 $90,400 $97,700 $104,900 $112,100 $119,400 120% of median $75,960 $86,880 $97,680 $108,480 $117,240 $125,880 $134,520 $143,280 Inflow/Outflow - The Inflow/Outflow Analysis generates results showing the count and charac- teristics of worker flows in to, out of, and within the defined geographic area. Low -Income - Person or household with gross household incomes below 80% of Area Median Income, adjusted for household size. Low -Income Housing Tax Credit - A program aimed to generate equity for investment in af- fordable rental housing authorized pursuant to Section 42 of the Internal Revenue Code. The program requires that a certain percentage of units built be restricted for occupancy to house- holds earning 60% or less of Area Median Income, and rents on these units be restricted ac- cordingly. Market analysis - The study of real estate market conditions for a specific type of property, ge- ographic area or proposed (re)development. MAXFIELD RESEARCH AND CONSULTING 142 Page 154 APPENDIX Market rent —The rent that an apartment, without rent or income restrictions or rent subsi- dies, would command in a given area or "Market Area" considering its location, features and amenities. Market study —A comprehensive study of a specific proposal including a review of the housing market in a defined market or geography. Project specific market studies are often used by de- velopers, property managers or government entities to determine the appropriateness of a pro- posed development, whereas market specific market studies are used to determine what house needs, if any, existing within a specific geography. Market rate rental housing — Housing that does not have any income -restrictions. Some prop- erties will have income guidelines, which are minimum annual incomes required in order to re- side at the property. Memory Care — Memory Care properties, designed specifically for persons suffering from Alz- heimer's disease or other dementias, is one of the newest trends in senior housing. Properties consist mostly of suite -style or studio units or occasionally one -bedroom apartment -style units, and large amounts of communal areas for activities and programming. In addition, staff typi- cally undergoes specialized training in the care of this population. Because of the greater amount of individualized personal care required by residents, staffing ratios are much higher than traditional assisted living and thus, the costs of care are also higher. Unlike conventional assisted living, however, which deals almost exclusively with widows or widowers, a higher pro- portion of persons afflicted with Alzheimer's disease are in two -person households. That means the decision to move a spouse into a memory care facility involves the caregiver's con- cern of incurring the costs of health care at a special facility while continuing to maintain their home. Migration — The movement of households and/or people into or out of an area. Mixed -income property—An apartment property contained either both income -restricted and unrestricted units or units restricted at two or more income limits. Mobility — The ease at which people move from one location to another. Moderate Income — Person or household with gross household income between 80% and 120% of the Area Median Income, adjusted for household size. Multifamily — Properties and structures that contain more than two housing units. Naturally Occurring Affordable Housing— Although affordable housing is typically associated with an income -restricted property, there are other housing units in communities that indi- rectly provide affordable housing. Housing units that were not developed or designated with income guidelines (i.e. assisted) yet are more affordable than other units in a community are MAXFIELD RESEARCH AND CONSULTING 143 Page 155 APPENDIX considered "naturally -occurring' or "unsubsidized affordable" units. This rental supply is avail- able through the private market, versus assisted housing programs through various governmen- tal agencies. Property values on these units are lower based on a combination of factors, such as: age of structure/housing stock, location, condition, size, functionally obsolete, school dis- trict, etc. Net Income — Income earned after payroll withholdings such as state and federal income taxes, social security, as well as retirement savings and health insurance. Net Worth —The difference between assets and liabilities, or the total value of assets after the debt is subtracted. Pent-up demand — A market in which there is a scarcity of supply and as such, vacancy rates are very low or non-existent. Population — All people living in a geographic area. Population Density —The population of an area divided by the number of square miles of land area. Population Trends — Changes in population levels for a particular geographic area over a spe- cific period of time — a function of the level of births, deaths, and in/out migration. Project -Based rent assistance — Rental assistance from any source that is allocated to the prop- erty or a specific number of units in the property and is available to each income eligible tenant of the property or an assisted unit. Redevelopment —The redesign, rehabilitation or expansion of existing properties. Rent burden — gross rent divided by adjusted monthly household income. Restricted rent — The rent charged under the restriction of a specific housing program or sub- sidy. Saturation — The point at which there is no longer demand to support additional market rate, affordable/subsidized, rental, for -sale, or senior housing units. Saturation usually refers to a particular segment of a specific market. Senior Housing — The term "senior housing" refers to any housing development that is re- stricted to people age 55 or older. Today, senior housing includes an entire spectrum of hous- ing alternatives. Maxfield Research Inc. classifies senior housing into four categories based on the level of support services. The four categories are: Active Adult, Congregate, Assisted Living and Memory Care. MAXFIELD RESEARCH AND CONSULTING 144 Page 156 APPENDIX Short Sale — A sale of real estate in which the net proceeds from selling the property do not cover the sellers' mortgage obligations. The difference is forgiven by the lender, or other ar- rangements are made with the lender to settle the remainder of the debt. Single-family home — A dwelling unit, either attached or detached, designed for use by one household and with direct street access. It does not share heating facilities or other essential electrical, mechanical or building facilities with another dwelling. Stabilized level of occupancy—The underwritten or actual number of occupied units that a property is expected to maintain after the initial lease -up period. Subsidized housing — Housing that is income -restricted to households earning at or below 30% AMI. Rent is generally based on income, with the household contributing 30% of their adjusted gross income toward rent. Also referred to as extremely low income housing. Subsidy_— Monthly income received by a tenant or by an owner on behalf of a tenant to pay the difference between the apartment's contract/market rate rent and the amount paid by the ten- ant toward rent. Substandard conditions — Housing conditions that are conventionally considered unacceptable and can be defined in terms of lacking plumbing facilities, one or more major mechanical or electrical system malfunctions, or overcrowded conditions. TarLret population — The market segment or segments of the given population a development would appeal or cater to. Tenant — One who rents real property from another individual or rental company. Tenant -paid utilities — The cost of utilities, excluding cable, telephone, or internet necessary for the habitation of a dwelling unit, which are paid by said tenant. Tenure — The distinction between owner -occupied and renter -occupied housing units. Turnover—A measure of movement of residents into and out of a geographic location. Turnover period — An estimate of the number of housing units in a geographic location as a per- centage of the total house units that will likely change occupants in any one year. Unrestricted units — Units that are not subject to any income or rent restrictions. Vacancy period — The amount of time an apartment remains vacant and is available on the market for rent. MAXFIELD RESEARCH AND CONSULTING 145 Page 157 APPENDIX Workforce housing — Housing that is income -restricted to households earning between 80% and 120% AMI. Also referred to as moderate -income housing. Zoning — Classification and regulation of land use by local governments according to use catego- ries (zones); often also includes density designations and limitations MAXFIELD RESEARCH AND CONSULTING 146 Page 158 rp City of Plymouth Adding Quality to Life SPECIAL COUNCIL/PLANNING COMMISSION/HRA To: Prepared by: MEETING Reviewed by: April 24, 2018 Item: 1. ACTION REQUESTED: Agenda 2B Number: Dave Callister, City Manager James Barnes, HRA Manager Steve Juetten, Community Development Director Plymouth Housing and Redevelopment Authority Senior Building Long Range Forecasts and Reserve Accounts Staff will present an overview of the HRA's long range forecasts and replacement reserve accounts. 2. BACKGROUND: For the past 10 years, staff has monitored the long term cash flow of the senior buildings (Plymouth Towne Square and Vicksburg Crossing) with the use of an Excel spreadsheet cash flow model and a rough maintenance schedule for each building. The cash flow models provide a high level product that allows staff to track revenues and expenses to help during the budget process and to identify any potential future cash flow issues. Over the years, the maintenance/replacement information provided some insight, but it became clear that a more robust schedule was necessary which allows data input and outcome to be more accurately predicted (understanding that maintenance schedules cannot be 100% predicted). In 2017, staff (CD and Finance) created a new maintenance schedule that allows staff to track all major components of each building and allows staff to enter when work was completed (both partial and full replacements). In early 2018, the two spreadsheets (cash flow and maintenance) were linked to allow the update of one to be reflected in the other without having to update both spreadsheets separately. Page 1 CASH RESERVES Total Expense 451,076 490,069 Green = n0 escalator 530,437 52205 540,962 $56,917 572,975 589,507 606,529 624,055 642,101 680,680 679,811 699,508 719,789 740,672 762,174 784,314 807,110 830,584 854,754 8794642 Income 205,119 128,811 -10% 9% 6% 2% -2% 4% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% Plymouth Towne Square Escalator 1% (84,000) Actuals 426,073 411,521 379,778 374,526 416,339 415,697 406,349 396,965 387,173 376,959 356,308 355,208 343,642 331,596 319,053 305,998 292,414 278,284 263,590 248,313 232,434 Expense 198,795 180,993 Investment Income - (14,676) 31,958 164505 10,004 10,812 10,000 960 699 89 (281) (1,956) (2,147 (1,678) 1,368 4,208 4,998 7,762 10,217 11,529 14,335 Escalator 3% 17,210 Budget Interest Expense (1,085) 94,512 87,068 794548 71,805 63,649 54,650 46,025 37,100 27,837 18,200 8,166 21,781 23,333 24,728 Actual End of Year Operational Cash Balance 74,882 43,554 215,373 62,488 2,969 7,092 T' 59,757 1071426 161,190 226,397 193,248 Projected 707,031 Depreciation 1,180,811 202,127 197,407 189,115 1924602 183,863 225,000 170,882 175,109 175,417 190,598 189,923 192,158 187,145 187,117 190,670 190,670 190,670 190,670 2013 2014 2015 2016 2017 2818 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2831 2032 2033 2034 2035 2036 Actual Actual Actuat Actual Actual Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection projection Projection Projection REVENUE 154,821 145,848 132,591 120,327 109,507 97,831 84,849 74,226 63.856 70,353 165,882 149047 - Apartment Rental Revenue 622,659 637,185 636,402 631,785 633,635 650,124 656,625 663,191 669,823 676,522 683,287 690,120 697,021 703,991 711,031 718,141 725,323 732,576 739,902 747,301 754,774 762,322 M.945 777,644 Apartment Rental Revenue -County - - - - - 0 0 (0)l (0 0 0 0 0 Rent Concession - - - - fGarage Rental 35,721 34,159 32,959 34,129 36,842 35,600 36,600 38,600 36,600 36,600 36.600 36,600 36,600 36,600 36,600 36,600 36,600 36,600 36,600 36,600 36.600 36.600 MAO 36,600 Guest Suite Revenue 11870 3,135 1,556 3,055 715 1,950 1,950 1,950 1,950 1,950 1,950 1,950 1,954 1,954 1,950 1,950 1,950 1,950 1,950 1,950 1,95U 1,950 1,950 f. -95 -0 - , 50Laundry LaundryRevenue 10,344 9,987 9,445 10,222 10,638 10,620 10,726 15.951 10.942 11,051 11,162 11,273 11,386 11,500 11,615 11,731 11,848 11,967 1 Z987 12,207 12,329 12,453 12,577 12-76-3 Late Fee Revenue - - - - - - - - - - - - - - - - - - - - - - - - Applicatlon Fee Revenue 325 415 560 245 685 665 665 665 665 665 665 665 665 665 665 665 665 665 665 665 665 865 665 655 Transfer Fee Revenue - 500 500 71500 1,000 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 Smoker's Fee Revenue - - - - - - - - - - - - - - - - - - - - - - - - MlsceYeneous Revenue 216 1,205 1,797 615 4,929 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 TIF - - 80,000 73,412 80,000 80,000 80,000 HRA Subsidy 206,004 215,004 138,000 150,000 1704000 175,000 175,000 255,000 255,000 255.000 255.000255,000 255,000 255,000 255,000 255,000 255.000 255,000 255,000 255,000 255,000 255,000 255,000 255,000 Total Revenue 877,149 901,590 901,219 904,963 938,423 956,659 963,266 969,940 976,680 983,488 990,364 997,308 1,004,322 1,011,498 1,018,561 1,025,787 1,033,086 1,040,458 1,047,903 1,055,423 1,063,018 1,078,689 1,078,437 1,086,262 -2% 3% 0% 0% 4% 2% 1% 1% 1% 1% 1% 1% 1°% 1% 1°% 1% 1% 1% 1% 1% 1% 1% 1% 1% EXPENSES Property Administration 155,472 183,625 192,057 193,349 198,336 213,268 219,666 228,256 233,044 240,035 247,236 254,653 262,293 270,162 278,266 286,614 295,213 304,069 313,191 322,587 332,265 342,233 352,500 363,074 Resident Services 5,557 4,212 4,115 4,287 6,453 6,025 6,206 6,392 6,584 6,781 61985 7,194 7,410 7,632 7,861 8,097 8,340 8,590 8,848 9,113 9,387 9,668 9,958 10,257 Marketing & Leasing 84 - - - - 120 124 127 131 135 139 143 148 152 157 161 166 171 176 182 187 193 198 204 Housekeeping 18,830 19,037 18,553 19,378 19,013 20,340 _213,950 21,579 22,226 22,893 23,W 24,287 25,016 25,760 26,539 27,335 28,155 29,000 29,870 30,766 31.689 32,640 33,619 34,627 8uiWings & Grounds 210,006 220,413 243,655 250,495 235,980 239,822 247,017 254,427 262,060 269,922 278,019 286,360 294,951 303,799 312,913 322,301 331,970 341,929 352,187 362,752 373,635 354,844 396,389 408,281 Property & Liability Insurance 2%742 30,923 31,041 31,339 30,621 29,562 30,449 31,362 32,303 33,272 34,270 35,299 36,358 37,448 38,572 39,729 44,921 42,148 43,413 44,715 46,057 47,438 48,861 50,327 Payment in Lieu of Taxes 31,385 31,859 31,820 31,589 31,682 31_K5_ _ 32,506 32,831 . 33,160. 33,491 33,826 34,164 34,506 34,851 35,200 35,552 35,907 36,266 _ _ 36,629_ 36,995 37,365 37,739 38,119 38,497 CASH RESERVES Total Expense 451,076 490,069 521,441 530,437 52205 540,962 $56,917 572,975 589,507 606,529 624,055 642,101 680,680 679,811 699,508 719,789 740,672 762,174 784,314 807,110 830,584 854,754 8794642 905,269 205,119 128,811 -10% 9% 6% 2% -2% 4% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% (84,000) Net Operating Income (Lass) 426,073 411,521 379,778 374,526 416,339 415,697 406,349 396,965 387,173 376,959 356,308 355,208 343,642 331,596 319,053 305,998 292,414 278,284 263,590 248,313 232,434 2154935 198,795 180,993 Investment Income - (14,676) 31,958 164505 10,004 10,812 10,000 960 699 89 (281) (1,956) (2,147 (1,678) 1,368 4,208 4,998 7,762 10,217 11,529 14,335 14,959 15,253 17,210 18,176 Interest Expense (1,085) 94,512 87,068 794548 71,805 63,649 54,650 46,025 37,100 27,837 18,200 8,166 21,781 23,333 24,728 Actual End of Year Operational Cash Balance 74,882 43,554 215,373 62,488 2,969 7,092 T' 59,757 1071426 161,190 226,397 193,248 454,842 707,031 Depreciation 1,180,811 202,127 197,407 189,115 1924602 183,863 225,000 170,882 175,109 175,417 190,598 189,923 192,158 187,145 187,117 190,670 190,670 190,670 190,670 190,670 188,422 183,537 160,835 50,123 _ 50,123 Amortization (64319) (6,318) (6,319) (6,319) (6,319) (6,320) 6,320 6,320 6,320 6,320 4,730 - - - - - - - - - Transfers - To Operations Net Incorne(Loss) 121,077 185,320 133,939 126,442 185,958 152.367 196,722 191,775 190,149 174.200 170.994 160,903 154,821 145,848 132,591 120,327 109,507 97,831 84,849 74,226 63.856 70,353 165,882 149047 CASH RESERVES _ Operational Cash (Last year+ Net Operating Income (Lo8s)) 418,666 399,257 368,913 _ 327,41$ 269,533 205,119 128,811 536,890 786,437 1,026,084 1,255,223 1,473,225 1,679,435 1,873,177 2,053,746 2,220,415 2,372,429 2,509,005 2,629,331 Transfer to Replacement Reserve (84,000) (84,000) (844(00} (84,000) (64,000) (84,000) (84,000) (84,000) (84,000) (84,000) (84,000) (84,000) (84,000) (84,000) (84,000) (84,000) (84,000) (84,000) (84,000) Transfer to Debt Service (341,788) (343,238) (344,38B) (350,238) (345,638) (345,880) - - - - - - - - - - - - - Transfer from Debt Service 150,724 Interest 30 (72) (283) (604) (1,085) (1,628) (2,287) 1,952 4,594 7,141 9,587 11,926 14,152 16,257 18,235 20,079 21,781 23,333 24,728 Actual End of Year Operational Cash Balance 74,882 43,554 215,373 62,488 2,969 7,092 28,052 59,757 1071426 161,190 226,397 193,248 454,842 707,031 949,225 1,180,811 1,401,151 1,509,587 1,505,433 1,987,981 2,158,494 2,310,210 2,448,338 2,570,060 Debt Service Transfers - from Operations (Debt Service) 341,788 343,238 344,388 350,238 345,638 345,888 - - - - - - - - - - Transfers - To Operations (150,724) Interest Income 1,419 1,433 11448 1,462 11477 1,492 1,507 - Principsll Interest Payments 341,788 343,238 344,388 350,238 345,638 345,888 End of Year Reserve Balance 108,647 111,744 90,171 70,855 140,485 141,904 143,338 144,785 146,248 147,725 149,217 0 e} (od f0d0 0 0 (0)l (0 0 0 0 0 TOTAL Operational Cash + Debt Service Cash RESERVES 183,529 155,298 125,202 133,373 143,454 134,813 115,286 85,028 38,622 (13,465) (77,180) 193,248 454,841 707,031 949,225 1,180,810 1,401,151 1,609,587 1,805,433 1,987,987 2,156,494 2,310,209 2,448,338 2,570,059 Replacement Reserves Transfer from Operational Cash Account 84,000 84,000 84,000 84,000 84,000 84,000 84,000 84,000 84,000 84,000 84,000 84,000 84,000 84,000 8000 84,000 84,000 84,000 84,000 Interest Income 2,184 (402) (466) (948) (673) (1,820) (1,367) (3,628) (3,226) (2,933) (4,589) (4,164) (3,935) (4,326) (3,900) (5,120) (6,528) {6,123} (6,552) Replacement LlsefMlsc. Invoices 342,248 89,894 737,376 55,764 19fi,924 37,324 306,534 40,516 51,824 245,014 37,324 57,124 178,980 37,3x4 200,924 218,264 37 324 120,416 120,720 End afYear Reserve Balance 858,682 987,584 983,700 914,709 218,288 39,795 46,091 93,872 66,585 780,782 135,328 359,227 319,371 290,421 454,368 472,281 389,569 428,484 386,138 508,980 648,344 608,196 548,735 892,007 TOTAL CASH RESERVES 1,042,211 1,122,882 1,108,902 1,048,081 359,722 95,017 69,195 8,845 27,763 193,647 212,506 165,979 135,471 416,610 494,857 768,530 1,011,582 1,181,103 1,419,297 1,481,421 7,510,750 1,704,014 1,799,603 1,878,053 gt ' - Crossover refundings are reflected in the Debt Servlee interest balances Vicksburg Crossings REVENUE Apartment Rental Revenue Apartment Rental Revenue -County Rent Concession Garage Rental Guest Suite Revenue Late Fee Revenue Application Fee Revenue Transfer Fee Revenue Smoker's Fee Revenue Miscellaneous Revenue HRA Subsidy EXPENSES Property Administration Resident Services Marketing & Leasing Housekeeping Buildings & Grounds Property & Liability Insurance Payment in Lieu of TaXes Investment Income Interest Expense Depreciation Amortixatlon CASH RESERVES Green = no escatalor Operational Cash (Last year+ Profit) 1,367,670 1,360,859 Income 14336,171 1,318,263 1,294,638 1,265,070 1,229,922 1,190,166 1,146,199 1,092,870 1,035,613 989,926 895,663 813,381 718,715 616,543 502,558 377,491 Transfer to Replacement Reserve (72,000) (72,000) (72,000) (72,006) (72,000) (72,000) Escalator 1 % (72,000) Acluals (72,000) (72,000) (72,000) (72,000) (72,000) (72,000) (72,000) (72,000) (72,000) Transfer to Debt Service Reserve (661,550) (662,950) (659,200) (660,300) (661,200) (661,900) (661,800) (660,275) (857,900) (660,213) Expense (656,913) (65$,856) (655,675) (658,275) (655,350) (656,119) (655.481) - Transfer from Debt Service Escalator 3% Budget 52045&1 Interest 6,501 6,470 6,385 6,300 6,163 5,971 5,724 5,424 5,081 4,7,00 4,229 3,722 3,135 2,468 1,722 857 79 1,128 2,283 End of Year 0 PERATI 0 NA L Cash Be lance 500,140 501,247 587,146 652,004 643,618 Projected 632,179 623,757 610,171 591,226 566,709 536,994 503,070 465,347 418,687 368,542 310,423 244,204 170,455 84,826 7,779 111.684 22 6,,050 823,789 Debt Service 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 661,200 Actual Actual Actual Actual Actual Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection 1,099,672 1,116,706 1,145,575 1,148,466 1,165,706 1 1,161,944 1 1,173,563 1 1,185,299 1 1,197,152 1 1,209,124 1 1,221,215 1 1,233,427 1 1,245,761 1 1,258,219 J1,270,801 1 1,283,509 1 1,296,344 1 1,309,308 1,322,401 1,335,625 1,348,981 1,362,471 1,376,095 1 1,389,658 4,901 25,653 24,395 19,352 25,983 22,877 23,376 23,376 23,375 23,376 23,376 23,376 23,376 23,376 23,376 23,376 23,376 23,376 23,376 23,376 23,376 23,376 23,376 23,376 23,376 856,119 0 - - (29) 434,439 438,827 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 35,482 35,925 35,904 36,118 36,570 39,600 39,800 39,600 39,600 39,600 39,600 39,6130 39,600 39,600 39,600 39,600 39,600 39,600 39,600 39,600 39,600 39,600 39,600 39,600 72,000 3,580 3,020 3,356 2,920 3,140 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,620 1,820 1,820 1,620 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 3,847 390 600 30 - - - (1,985) (1,898) - - - Replacement UselMlsc. Invoices 311,690 170,008 - - - - 119,770 119,520 - - - 44,000 770 525 350 420 560 420 420 420 420 420 420 420 420 420 420 420 420 420 420 420 420 420 420 426 171,213 2,600 1,000 - 1,540 540 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 SOQ 500 500 500 0 - - - - - - 3,834 4,110 3,372 4,091 4,822 3,420 3,400 3,400 3,400 1 3,400 3,400 3,490 1 3,400 3,400 3,400 7,400 3,400 3,400 3,400 3,400 3,400 3,400 3,400 3,400 30,000 50,004 60,000 48,000 76,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 36,000 30,000 30,000 Total RUvenue 1,201,981 1,238,285 1,267,938 1,267,469 1,254,175 1,261,080 1,272,679 1,284,416 1,296,270 1,308,243 1,320,335 1,332,548 1,344,883 1,357,342 1,369,925 11,362,634 1,395,470 1,408,435 1,421,529 1,434,754 1,448,311 1,461,602 1,475,227 1,488,989 3% 3% 3% 0% -1% 1% 1% 1% 1% 1% 1% I% 1% I% 1% 1% 1% 1% 1% 1% 1% 1% I% 1% 165,251 180,822 188,358 194,499 192,503 202,039 208,100 214,343 220,773 227,397 234,219 241,245 2484482 256,937 263,615 271,524 279,689 288,059 296,701 305,602 314,770 324,213 333,940 343,958 5,137 4,655 4,830 5,262 6,735 5,800 5,974 6,153 6,338 6.528 6,724 6,926 7,133 7,347 7,568 7,795 8,029 8,269 8,517 8,773 9,036 %307 9,587 9,874 1,945 6,712 1,108 375 11025 1,200 1,236 1,273 1,311 1,351 1,391 1,433 1,476 1,520 10566 1,613 1,661 1,711 1,762 1,815 11870 1,926 7.983 2,043 12,944 124687 13,005 15,063 14,565 15,720 16,192 16,677 17,178 17,693 18,224 18,771 19,334 19,914 20,511 21,126 21,760 22,413 23,085 23,778 24,491 25,226 25,983 26.762- 210o628 207,429 174,762 185,742 224,946 223,480 230,184 237,090 244,203 251,529 259,075 266,847 274,852 283,098 291,591 300,338 309,349 318,629 328188 338,034 348,175 358,620 369,378 384,460 31,303 32,197 32,204 32,516 31,801 30,766 31,689 32,640 33,819 34,627 35,666 36,736 37,838 38,973 46,143 41,347 42,587 43,865 45,181 46,536 47,932 49,370 50,852 52,377 54,984 57,055 58,246 58,723 59,429 56,023 59,266 59,847 60,434 61,026 61,625 62,230 62,540 63,457 64,080 64,709 65,344 65,986 66,634 67,289 67,950 68,618 69,292 69,974 Total Expense 482,092 501,557 472513 492,180 530,005 537,028 552,641 568,023 563,655 600,151 616,923 634,167 651,956 670,246 689,073 7080452 726,399 748,933 770,069 79147 814,224 637,280 861,015 885,448 12% 4% -6% 4% 8% 19A 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% Net Operating Income (loss) 719,889 734.728 795,425 775.269 724,170 724,052 720,038 716,393 712,415 708,092 703,412 698,361 692,927 687,096 680.852 674.183 667,071 659.502 651,459 642,927 633,887 624,321 614,213 603.542 57,966 58,678 8,237 6,864 (30316) 7,000 16,849 15,879 16,172 1 15,026 14,503 14,624 13,932 13,195 13,170 7,923 7,373 7,106 6,440 4,737 4,010 3,294 1 2,500 1,664 720,516 688,828 298,709 250,677 242,103 233,008 224,325 215,533 2064550 197,367 187,983 177,300 165,171 152,692 139,848 125,547 110,725 95,497 78,550 600900 42,786 22,655 1,747 367,667 365,245 340,184 337,220 304,735 310,000 310,412 311,212 3184366 309,296 310,096 314,190 319,524 312,229 244,498 245,298 2464098 246,898 245,558 222,789 223,589 224,389 225,189 222,873 2,494 2,494 2,494 25,177 1,240 1,240 1,240 1,240 1,240 1,240 1,240 1,240 1,240 1,240 1,240 1,240 1,240 1,240 1,240 7,240 1,240 1,240 100 Not Income(Lass) -312,822 (272,961) 162,275 169.079 172,774 185,604 200,910 204,286 202,431 215,215 218,596_ 220,255 220,924 234,130 308,437 310,026 316,381 322,973 332,553 362.734 370,280 379,331 389,677 382,333 CASH RESERVES Operational Cash (Last year+ Profit) 1,367,670 1,360,859 1,348,572 14336,171 1,318,263 1,294,638 1,265,070 1,229,922 1,190,166 1,146,199 1,092,870 1,035,613 989,926 895,663 813,381 718,715 616,543 502,558 377,491 Transfer to Replacement Reserve (72,000) (72,000) (72,000) (72,006) (72,000) (72,000) (72,000) (72,000) (72,000) (72,000) (72,000) (72,000) (72,000) (72,000) (72,000) (72,000) (72,000) (72,000) (72,000) Transfer to Debt Service Reserve (661,550) (662,950) (659,200) (660,300) (661,200) (661,900) (661,800) (660,275) (857,900) (660,213) (656,556) (656,913) (65$,856) (655,675) (658,275) (655,350) (656,119) (655.481) - Transfer from Debt Service 52045&1 Interest 6,501 6,470 6,385 6,300 6,163 5,971 5,724 5,424 5,081 4,7,00 4,229 3,722 3,135 2,468 1,722 857 79 1,128 2,283 End of Year 0 PERATI 0 NA L Cash Be lance 500,140 501,247 587,146 652,004 643,618 640,621 632,179 623,757 610,171 591,226 566,709 536,994 503,070 465,347 418,687 368,542 310,423 244,204 170,455 84,826 7,779 111.684 22 6,,050 823,789 Debt Service Transfers - From Operations (Principal) 661,550 662,950 659,200 660,300 661,200 661,900 661,800 660,275 657,900 660,213 656.556 656,913 656.856 655,675 658,275 655,350 656,119 655,481 - Tra nsfers - To Operati ons (520,581) IMerest Income 4,344 4,388 4,432 4,477 4,522 4,568 4,614 4,661 4,708 4,755 4,803 4,852 4,901 4.950 5,000 6,051 5,102 5,153 5,205 Principal 1 interest Payments (661,550) 662 950 (659,200) (660,300) 561,200 661.900 661.800 (660,275) 657,900 560.213 656,556 656,913 656,858 655,675 658,275 655,350 856,119 (655,481) End of Year 0EBT SERVICE Reserve Balance 9,883,177 9,687,540 441,699 437,917 430,095 434,439 438,827 443,259 447,736 452,258 456,826 461,440 466,101 470,808 475,554 48,0,367 485,218 490,119 495,069 500,970 505,120 510,222 515,375 0 Replacement Reserves Transfers - from operations 72,000 72,000 72,000 72,000 7200 72,000 72,000 72,000 72,GW 72,000 7200 72,000 72,000 72,000 72,400 72,000 72,000 72,000 72,000 interest 6,328 5,991 5,061 5,395 4,341 3,964 4,287 3,847 3,406 3,715 (1,109) (1,201) (930) (977) (1,985) (1,898) (1,729) (1,526) (1,258) Replacement UselMlsc. Invoices 311,690 170,008 44,000 187,780 113,699 44.000 119,770 119,520 44,849 553 340 Bo QQo 44,000 75,690 170,848 61,33,0 53,440 50 .10,0 44,000 181,780 End of Year REPLACEMENT Reserve Balance 362,516 421,944 487,960 553,987 626,508 593,145 501,128 534,189 429,805 392,446 424,410 380,927 337,254 367,820 109,815 118,914 92,115 96,735 196,56,0 187,075 171,213 151,042 124,b 18 238,606 TOTAL CASH RESERVES 10,745,833 10,610,731 1,516,804 1,643,908 1,709,221 1,668,205 1,572,134 1,601,246 1,487,712 1,435,931 1,447,945 1,379,361 1,306,425 1.303,976 784,446 729,995 703,526 637,588 468,964 397,022 326,129 247,525 164,757 588,183 HRA General Fund Cash Reserves $3,500,000 $3,000,000 x $2,907,085 $2,500,000 ----$2,120,084 �$2,235,967 $2,272,709 $2,000,000 $2,120,084 $1,500,000 $1, 000,000 $500,000 2014 2015 2016 2017 2018 $1,518,535 $913,535 2019 Replacement Reserve Schedule Plymouth Towne Square 2018 Item Construction/ Replacement Year Original Projected Replacement Year Adjusted Projected Replacement Year Unit of Measure Q /Area Unit Cost Total Cost Lifetime Years Min Lifetime Years 12131/2017 Accumulated Reserve Balance 2018 Annual Reserve 12131/2018 2018 Replacement Accumulated Disbursements Reserve Balance2 Asphalt (seal/stripe) 2015 2018 Square Feet 16,000 $ 0.59 $ 9,440 3 to 5 3 $ 6,293 $ 3,147 $ 9,440 Boiler Circ. Pumps #1 2012 2022 Unit 1 7,800.00 1 7,800 10 to 15 10 3,900 780 4,680 Boiler Circ. Pumps #2 2012 2022 Unit 1 7,800.00 7,800 10 to 15 10 3,900 780 4,680 Car et Stairwells 2016 2038 Square Yard 200 47.00 9,400 22 to 25 22 427 427 855 arpet eva ors ntryway uare ar 76 42.00 3,192 5 to 7 5 1,277 1,915 Carpet Resident Corridors 2004 2024 Square Yard 1,760 40.00 70,400 20 to 22 20 45,760 3,520 49,280 Carpet - Offices & Computer Room 2004 2018 Square Yard 72 37.00 2,664 12 to 15 12 2,474 190 2,664 Carpet Lobby/Dining/Fireplace Room etc 2004 2018 Square Yard 562 42.00 23,604 12 to 15 12 21,918 1,686 23,604 Carpet - Activity-PuzzJe-Exercise-Library 2004 2018 Square Yard 238 37.00 8,806 12 to 15 12 8,177 629 8,806 Flooring trash rooms/Janitor rooms 2004 2018 Square yard 50 47.00 2,350 12 to 15 12 2,182 168 2,350 Common Area Furniture - Dining Room 2004 2020 Unit 1 48,400.00 1 48,400 16 to 20 1 16 39,325 3,025 42,350 Common Area Furniture - Fireplace Room 2004 2020 Unit 1 51900.00 5,900 16 to 20 16 4,794 369 5,163 Common Area Furniture - Sun Room 2016 2032 Unit 1 4,000.00 4,000 16 to 20 16 250 250 500 Common Area Furniture - Activity Room 2011 2027 Unit 1 8,800.00 8,800 16 to 20 16 3,300 550 3,850 Common Area Furniture - Puzzle Room 1994 2018 Unit 1 2,300.00 2,300 20 to 22 20 2,204 96 2,300 Common Area Furniture - Craft Room 2016 2036 Unit 1 4,100.00 4,100 20 to 22 20 205 205 410 Common Area Furniture - Lobby 2004 2018 Unit 1 6,700.00 6,700 9 to 12 9 6,221 479 6,700 Common Area Furniture - 2nd/3rd floor 1994 2018 Unit 1 51000.00 5,000 20 to 22 20 4,792 208 5,000 Common Area Furniture - outdoor 2006 2018 Unit 1 7,600.00 7,600 12 to 15 12 6,967 633 7,600 Garage Floor Sealer 2011 2019 Square Feet 30,000 0.38 11.400 8 to 12 8 8,550 1,425 9,975 Heating Zone Valves 2010 2020 Unit 120 200.00 24,000 10 to 15 10 16,800 2,400 19,200 Lighting Fixture Wall Sconces (common areas) 2017 2037 Unit 100 33.00 3,300 20 to 25 20 165 165 Lighting fixtures Ceiling (common areas) 1994 2018 Unit 110 36.00 3,960 20 to 25 20 3,795 165 3,960 Lighting fixtures (garage) 2016 2036 Unit 318 17.00 5,406 20 to 25 1 20 270 270 541 Paint Stairwells 2016 2036 Unit 3 1,150.00 3,450 20 to 25 20 173 173 345 Paint Common Areas 2004 2024 Square Feet 34,868 1 2.50 87,170 20 to 22 20 56,661 4,359 61,019 Fire Lane Replacement 1994 2019 Square Feet 11,872 1.80 21,370 25 to 30 25 19,660 855 20,515 Parking Lot Replacement 2015 2035 Square Feet 16,000 3.50 56,000 20 to 25 20 5,600 2,800 8,400 Elevator Modernization 1994 2024 Unit 1 70,000.00 70,000 30 to 35 30 53,667 2,333 56,000 Generator major overhaul) 1994 2024 Unit 1 25 000.00 25,000 30 to 35 30 19,167 833 20,000 KN HW Boiler #1 2012 2022 Unit 1 48,000.00 48,000 10 to 15 10 24,000 4,800 28,800 KN HW Boiler #2 2012 2022 Unit 1 48,000.00 48,000 10 to 15 10 24,000 4,800 28,800 KN HW Boiler #3 2012 2022 Unit 1 48 000.00 48,000 30 to 15 10 1 24,000 4,800 28,800 Roof (asphalt) 2007 2027 Square Feet 1 43,000 2.95 1 126,850 20 to 25 20 63,425 6,343 69,768 Siding removal & reinstall 2017 2042 Square Feet 210 738.00 154,980 25 to 30 25 6,199 6,199 Trim, Fascia, & Soffit 2017 2042 Linear Feet 1,800 19.00 34,200 25 to 30 25 1,368 1,368 Water Softener 2009 2021 Unit 1 9,000.00 9,000 12 to 15 12 6,000 750 6,750 Window Replacement 2017 2042 Unit 346 1,000.00 346,000 25 to 30 25 13,840 13,840 Lennox AHU #1 3rd Floor East Wing) 2003 2018 Unit 1 10,500.00 10,500 15 to 20 15 9,800 700 10,500 Win 1994 2018 Unit 1 7,200.00 7,200 15 to 20 15 6,900 300 7,200 Lennox AHU #2 3rd Floor North Wing) 2003 2018 Unit 1 10 500.00 10,500 15 to 20 15 9,800 700 10,500 Lennox CU #2 (Ground Level North Wing) 1994 2018 Unit 1 1 7,200.00 1 7,200 15 to 20 15 6,900 300 7,200 Lennox AHU #3 (3rd Floor West Wing) 2003 2018 Unit 1 10,500.00 10.500 15 to 20 15 9,800 700 10,500 Lennox CU #3 (Ground Level West Wing) 2009 2024 Unit 1 7,200.00 7,200 15 to 20 15 3,840 480 4,320 Lennox AHU #4 (3rd Floor Central Wing) 2003 2018 Unit 1 13,200.00 13,200 15 to 20 15 12,320 880 13,200 Lennox CU #4 (Heat Pump - Garage) 1994 2018 Unit 1 10,500.00 10,500 15 to 20 15 10,063 438 10,500 Carrier AHU #5 (Garage West Wing Maint Room) 2011 2026 Unit 1 14,500.00 14,500 15 to 20 15 5,800 967 6,767 Carrier CU #5 (Ground Level Front of Building) 2012 2027 Unit 1 13,000.00 1 13,000 15 to 20 15 4,333 867 5,200 Lennox AHU #6 (Garage Storage Area) 1994 2018 Unit 1 7,000.00 7,000 15 to 20 15 6,708 292 7,000 Thermal Zone CU #6 (Garage Storage Area) 1994 2.018 Unit 1 5,500.00 5,500 15 to 20 15 5,271 229 5,500 Carrier AHU #7 (2nd Floor Activity Room 2005 2020 Unit 1 7,000.00 7.000 15 to 20 15 5,600 467 6,067 Carrier CU #7 (Ground Level Front of Building East) 2005 2020 Unit 1 5,500.00 5,500 15 to 20 15 4,400 367 4,767 Titan MUA(Rooftop) 1994 2018 Unit 1 58 000.00 58,000 20 to 25 20 55,583 2,417 58,000 Greenheck EF (Garage) 1994 2018 Unit 1 12 000.00 12,000 20 to 25 20 11,500 500 12,000 Bell & Gossett Loop Pumps#1 1994 2018 Unit 1 9,000.00 9,000 15 to 20 15 8,625 375 9,000 Bell & Gossett Loop Pumps #2 1994 2018 Unit 1 9,000.00 9,000 15 to 20 15 8,625 375 9,000 Unit Heaters (Garage)#1 1994 2018 Unit 1 7,800.00 7,800 15 to 20 15 7,475 325 7,800 Unit Heaters (Garage) #2 1994 2018 Unit 1 7,800.00 7,800 15 to 20 15 7,475 325 7,800 Unit Heaters (Garage) #3 1994 2018 Unit 1 7800.00 7,800 15 to 20 15 7,476 325 7,800 Unit Heaters (Garage) #4 1994 2018 Unit 1 7,800.00 7,800 15 to 20 15 7,475 325 7,800 Unit Heaters (Garage) #5 1994 2018 Unit 1 7,800.00 7,800 15 to 20 15 7,475 325 7,800 Unit Heaters (Garage) #6 1994 2018 Unit 1 7,800.00 7,800 15 to 20 15 7,475 325 7,800 Unit Heaters (Garage) #7 1994 2018 Unit 1 7,800.00 7,800 15 to 20 15 7,475 325 7,800 Unit Heaters (Garage) #8 1994 2018 Unit 1 7,800.00 7,800 15 to 20 15 7,475 325 7,800 American HW Heater #1 (Garage) 2017 2027 Unit 1 10 500.00 10,500 10 to 12 10 1,050 1,050 American HW Heater #2 (Garage) 2017 2027 Unit 1 10 500.00 10,500 10 to 12 10 1,050 1,050 American HW Heater #3 (Garage) 2017 2027 Unit 1 30 500.00 10,500 10 to 12 10 - 1,050 1,050 Washing Machines #1 2009 2019 Unit 1 1,200.00 1,200 10 to 12 10 960 120 1,080 Washing Machines #2 2009 2019 Unit 1 1200.00 1,200 10 to 12 10 960 120 1,080 Washing Machines #3 2009 2019 Unit 1 1200.00 1,200 10 to 12 10 960 120 1,080 Washing Machines #4 2009 2019 Unit 1 1,200.00 1 1,200 10 to 12 10 960 120 1 1,080 Washing Machines #5 2009 2019 Unit 1 1200.00 1,200 10 to 12 10 960 120 1,080 Washing Machines #6 2009 2019 Unit 1 1200.00 1,200 1 10 to 12 10 960 120 1,080 Washing Machines #7 2009 2019 Unit 1 1200.00 1,200 10 to 12 10 960 120 1,080 Washing Machines #8 2009 2019 Unit 1 1200.00 1,200 10 to 12 10 960 120 1,080 Washing Machines #9 2009 2019 Unit 1 1200.00 1,200 10 to 12 10 960 120 1,080 Clothes Dryers #1 2009 2019 Unit 1 1000.00 1,000 30 to 12 10 800 100 900 Clothes Dryers #2 2009 2019 Unit 1 1,000.00 1,000 10 to 12 .10 800 100 900 Clothes Dryers #3 2009 2019 1 Unit 1 11000.00 1,000 10 to 12 10 800 100 900 Clothes Dryers #4 2009 2019 Unit 1 11000.00 1,000 10 to 12 30 800 100 900 Clothes Dryers #5 2009 2019 Unit 1 1,000.00 1,000 10 to 12 10 800 100 900 Clothes Dryers #6 2009 2019 Unit 1 1,000.00 1,000 10 to 12 10 800 100 900 Clothes Dryers #7 2009 2019 Unit 1 1,000.00 1,000 10 to 12 10 800 100 900 Clothes Dryers #8 2009 2019 Unit 1 1,000.00 1,000 10 to 12 10 800 100 900 Clothes Dryers #9 2009 2019 Unit 1 1,000.00 1,000 10 to 12 10 800 100 900 Subtotal $ 751,641 $ 95,539 $ - $ 847,180 Annual Replacements: Concrete Sidewalk (10% per year) 1994 2018 Square Feet 590 9.00 5,310 1 1 1 5,310 5,310 10,620 Replace Concrete Curb/Gutter (10% per year) 1994 2018 Lineal Feet 1 259 46.00 11,914 1 1 11,914 11,914 23,828 Apartment Refrigerators 1994 2018 Unit 5 725.00 3,625 1 1 3,625 3,625 7,250 Apartment Ranges 1994 2018 Unit 6 600.00 3,600 1 1 3,600 3 600 7,200 Unit Carpet 1994 2018 Unit 3 2,300.00 6,900 1 1 6,900 6,900 13,800 Unit Vinyl 1994 2018 Unit 3 1,325.00 3,975 1 1 3,975 3,975 7,950 A/C Units (replacement) 1994 2018 Unit 4 500.00 2,000 1 1 2,000 2,000 4,000 Subtotal $ 37,324 $ 37,324 $ - $ 74,648 GRAND TOTAL $ 788,965 $ 132,863 $ $ 921,828 Current Reserve Balance $ 335,367 Reserve Deficit $ (453,698) Long Range Projection Plymouth Towne Square 2018 ORIGINAL ADJUSTED CONSTRUCTIOW PROJECTED PROJECTED REPLACEMENT REPLACEMENT REPLACEMENT UNIT UNIT TOTAL LIFETIME MIN LIFETIME ANNUAL ACCUM ITEM YEAR YEAR YEAR MEASUREMENT QUANTITY COST COST YEARS YEARS RESERVE RESERVE 2018 2019 Asphalt (seal/stripe) 2015 2018 Square Feet 16,000 $ 0.59 $ 9,440 3 to 5 3 $ 3,147 $ 9,440 9,440 - Boiler Circ. Pumps #1 2012 2022 Unit 1 $ 7,800.00 $ 7,800 10 to 15 10 $ 780 $ 4,680 - - Boiler Circ. Pumps 42 2012 2022 unit 1 $ 7,800.00 $ 7,800 10 to 15 10 $ 780 $ 4,680 - Carpet Stairwells 2016 2038 Square Yard 200 $ 47.00 $ 9,400 22 to 25 22 $ 427 $ 855 - Carpet Elevators/Entryway Vestibule/Garage Lobbies 2015 2020 Square Yard 76 $ 42.00 $ 3,192 5 to 7 5 $ 638 $ 1,915 - Carpet Resident Corridors 2004 2024 Square Yard 1,760 $ 40.00 $ 70,400 20 to 22 20 $ 3,520 $ 49,280 - - Carpet - Offices & Computer Room 2004 2018 Square Yard 72 $ 37.00 $ 2,664 12 to 15 12 $ 190 $ 2,664 2,664 Carpet Lobby/Dining/Fireplace Room etc 2004 2018 Square Yard 562 $ 42.00 $ 23,604 12 to 15 12 $ 1,686 $ 23,604 23,604 - Carpet - Activity -Puzzle -Exercise - Library 2004 2018 Square Yard 238 $ 37.00 $ 8,806 12 to 15 12 $ 629 $ 8.806 8,806 Flooring trash roomslJanitor roams 2004 2018 Square yard 50 $ 47.00 $ 2,350 12 to 15 12 $ 168 $ 2,350 2,350 - Common Area Furniture - Dining Room 2404 2020 Unit 1 $48,400.00 $ 48,400 16 to 20 16 $ 3,025 $ 42,350 - - Common Area Furniture - Fireplace Room 2004 2020 Unit 1 $ 5,900.00 $ 5,900 16 to 20 16 $ 369 $ 5,163 - Common Area Furniture - Sun Room 2016 2032 Unit 1 $ 4,000.00 $ 4,000 16 to 20 16 $ 250 $ 500 - Common Area Furniture - Activity Room 2011 2027 Unit 1 $ 8,800.00 $ 8,800 16 to 20 16 $ 554 $ 3,850 - - Common Area Furniture - Puzzle Room 1994 2018 Unit 1 $ 2,300.00 $ 2,300 20 to 22 20 $ 96 $ 2,300 2,300 - Common Area Furniture - Craft Room 2016 2036 Unit 1 $ 4,100.00 $ 4,100 20 to 22 20 $ 205 $ 410 - - Common Area Furniture - Lobby 2004 2418 Unit 1 $ 6,700.00 $ 6,700 9 to 12 9 $ 479 $ 6,700 6,700 - Common Area Furniture - 2nd/3rd floor 1994 2018 Unit 1 $ 5,000.00 $ 5,000 20 to 22 20 $ 208 $ 5.000 5,000 - Common Area Furniture - Outdoor 2006 2018 Unit 1 $ 7,600.00 $ 7,604 12 to 15 12 $ 633 S 7,600 7,600 - Garage Floor Sealer 2011 2019 Square Feet 30,400 $ 0.38 $ 11,400 8 to 12 8 $ 1,425 $ 9,975 - 11,400 Heating Zone Valves 2010 2424 Unit 120 $ 200.00 $ 24,400 10 to 15 10 $ 2,400 $ 19,200 - - Lighting Fixture Wall Sconces (common areas) 2017 2037 Unit 100 $ 33.00 $ 3,300 20 to 25 20 $ 165 $ 165 - - Lighting fixtures Ceiling (common areas) 1994 2018 Unit 110 $ 36.00 $ 3,960 20 to 25 20 $ 165 $ 3,960 3,950 Lighting fixtures (garage) 2015 2036 Unit 318 $ 17.00 $ 5,406 20 to 25 20 $ 270 $ 541 - - Paint Stairwells 2015 2036 Unit 3 $ 1,150.00 $ 3,450 20 to 25 20 $ 173 $ 345 - - Paint Common Areas 2004 2024 Square Feet 34,868 $ 2.50 $ 87,170 20 to 22 20 $ 4,359 $ 61,019 - - Fire Lane Replacement 1994 2019 Square Feet 11,872 $ 1.80 $ 21,370 25 to 30 25 $ 855 S 20,515 - 21,370 Parking Lot Replacement 2015 2035 Square Feet 16,000 $ 3.50 $ 56,000 20 to 25 20 $ 2,800 $ 8,400 - - Elevator Modernization 1994 2024 Unit 1 $70,000.00 $ 70,000 30 to 35 34 $ 2,333 $ 56,000 - Generator (major overhaul) 1994 2024 Unit 1 $25,000.00 $ 25,004 30 to 35 30 $ 833 $ 20,000 - - KN HW Boiler 41 2012 2022 Unit 1 $48,000.00 $ 48,040 10 to 15 10 $ 4,800 $ 28.800 - - KN HW Boiler 42 2012 2022 Unit 1 $48,000.00 $ 48,000 10 to 15 10 $ 4,800 $ 2800 - - KN HW Boiler #3 2012 2022 Unit 1 $48,000.00 $ 48,000 10 to 15 10 $ 4,800 $ 28,800 - - Roof (asphalt) 2007 2027 Square Feet 43,000 $ 2.95 $ 126,850 20 to 25 20 $ 6,343 $ 69,768 - - Siding (removal ,& reinstall) 2017 2042 Square Feet 210 $ 738.00 $ 154,980 25 to 30 25 $ 6,199 $ 6,199 - - Trim, Fascia, & Soffit 2017 2042 Linear Feet 1,800 $ 19.00 $ 34,200 25 to 30 25 $ 1,368 $ 1,368 - Water Softener 2009 2021 Unit 1 $ 9,000.00 $ 9,000 12 to 15 12 $ 750 $ 6,750 - Window Replacement 2017 2042 Unit 346 $ 1,000.00 $ 346,000 25 to 30 25 $ 13,840 $ 13,840 Lennox AHU #1 (3rd Floor East Wing) 2003 2018 Unit 1 $10.500.00 $ 10,500 15 to 20 15 $ 700 $ 10,500 10,500 - Lennox CU #1 (Ground Level East Wing) 1994 2018 Unit 1 $ 7,240.00 $ 7;200 15 to 20 15 $ 300 $ 7,200 7,200 Lennox AHU #2 (3rd Floor North Wing) 2003 2018 Unit 1 $;10,500.00 $ 10,500 15 to 20 15 $ 700 $ 10,500 '10,500 Lennox CU #2 (Ground Level North Wing) 1994 2018 Unll 1 $ 7.200.00 $ 7,200 15 to 20 15 $ 300 $ 7.200 7,200 Lennox AHU #3 (3rd Floor West Wing) 2003 2018 Unit 1 $10,500.00 $ 10,500 15 to 20 15 $ 700 $ 10,500 '10,500 Lennox CU #3 (Ground Level West Wing) 2009 2024 Unit 1 $ 7,200.00 $ 7,200 15 to 20 15 $ 480 $ 4,320 - - Lennox AHU #4 (3rd Floor Central Wing) 2003 2018 Unit 1 $13,200.00 $ 13,200 15 to 20 15 $ 880 $ 13.200 13,200 Lennox CU #4 (Heat Pump - Garage) 1994 2018 Unit 1 $10,500.00 $ 10,500 15 to 20 15 $ 438 $ 10,500 14,500 Carrier AHU #5 (Garage West Wing Maint Room) 2011 2026 Unit 1 $14,500.00 $ 14,500 15 to 20 15 $ 967 $ 6,767 - Carrier CU #5 (Ground Level Front of Building) 2012 2027 Unit 1 $13,000.00 $ 13,000 15 to 20 15 $ 867 $ 5,200 - Lennox AHU 46 (Garage Storage Area) 1994 2018 Unit 1 $ 7,000.00 $ 7,000 15 to 20 15 $ 292 $ 7.000 7,040 Thermal Zane CU #6 (Garage Storage Area) 1994 20718 Unit 1 $ 5,500.00 $ 5,500 15 to 20 15 $ 229 $ 5,500 5,500 Carrier AHU #7 (2nd Floor Activity Room) 2005 2020 Unit 1 $ 7,000.00 $ 7,000 15 to 20 15 $ 467 $ 6,067 - - Carrier CU #7 (Ground Level Front of Building East) 2005 2020 Unit 1 $ 5,500.00 $ 5,500 15 to 20 15 $ 367 $ 4,767 - - Titan MUA (Rooftop) 1994 2018 Unit 1 $58,000.00 $ 58,000 20 to 25 20 $ 2,417 $ 58,000 58,000 - Greenheck EF (Garage) 1994 2018 Unit 1 $12,000.00 $ 12,000 20 to 25 20 $ 500 $ 12.000 12.000 - Bell & Gossett Loop Pumps#1 1994 2018 Unit 1 $ 9,000.00 $ 9,000 15 to 20 15 $ 375 $ 9,000 9,000 - Bell & Gossett Loop Pumps #2 1994 2018 Unit 1 $ 9,000.00 $ 9.000 15 to 20 15 $ 375 $ 9.000 9,004 - Unit Heaters (Garage)##1 1994 2018 Unit 1 $ 7,800.00 $ 7,800 15 to 20 15 $ 325 $ 7,800 7,800 - Unit Heaters (Garage) #2 1994 2018 Unit 1 $ 7,800.00 $ 7,800 15 to 20 15 $ 325 $ 7,800 7,800 Unit Heaters (Garage) #3 1994 2018 Unit 1 $ 7,800.00 $ 7,800 '15 to 20 15 $ 325 $ 7,800 7.800 Unit Heaters (Garage) #4 1994 2018 Unit 1 $ 7,840.00 $ 7,800 15 to 20 15 $ 325 $ 7,800 7,800 Unit Heaters (Garage) #5 1994 2018 Unit 1 $ 7,800.00 $ 7,800 15 to 20 15 $ 325 $ 7,800 7,800 - Unit Heaters (Garage) #6 1994 2018 Unit 1 $ 7,800.00 $ 7,800 15 to 20 15 $ 325 $ 7,800 7,800 Unit Heaters (Garage) #7 1994 2018 Unit 1 $ 7,800.00 $ 7,800 15 to 20 15 $ 325 $ 7,800 7,800 - Unit Heaters (Garage) #8 1994 2018 Unit 1 $ 7,800.00 $ 7,800 15 to 20 15 $ 325 $ 7,800 7,800 - American HW Heater #1 (Garage) 2017 2027 Unit 1 $10,500.00 $ 10,500 10 to 12 10 $ 1,050 $ 1,050 - American HW Heater #2 (Garage) 2017 2027 Unit 1 $10,500.00 $ 10,500 10 to 12 10 $ 1,050 $ 1,050 - - American HW Heater #3 (Garage) 2017 2027 Unit 1 $10,500.00 $ 10,500 10 to 12 10 $ 1,050 $ 1,050 - Washing Machines #1 2009 2019 Unit 1 $ 1,200.00 $ 1,200 10 to 12 10 $ 120 $ 1,080 - 1,2.00 Washing Machines #2 2009 2019 Unit 1 $ 1,200.00 $ 1,200 101o'[2 10 $ 120 $ 9,080 - 1,200 Washing Machines #3 2009 2019 Unit 1 $ 1,200.00 $ 1,200 10 to 12 10 $ 120 $ 1,084 - 1,200 Washing Machines #4 2009 2019 Unit 1 $ 1,200.00 $ 1,200 10 to 12 10 $ 120 $ 1,080 - 1,200 Washing Machines #5 2009 2019 Unit 1 $ 1,200.00 $ 1,200 10 to 12 10 $ 120 $ 1,080 - 1,200 Washing Machines #6 2009 2019 Unit 1 $ 1,200.00 $ 1,200 10 to 12 10 $ 120 $ 1,080 - 1.200 Washing Machines #7 2009 2419 Unit 1 $ 1,200.00 $ 1,200 10 to 12 10 $ 120 $ 1,080 - 1,200 Washing Machines #8 2009 2019 Unit 1 $ 1,200.00 $ 1,200 10 to 12 10 $ 120 $ 1,080 - 1,200 Washing Machines #9 2009 2019 Unit 1 $ 1,200.00 $ 1,200 10 to 12 10 $ 120 $ 1,080 1,200 Clothes Dryers #1 2009 2019 Unit 1 $ 1,000.00 $ 1,000 10 to 12 10 $ 100 $ 900 - 1,fl00 Clothes Dryers #2 2009 2019 Unit 1 $ 1,000.00 $ 1,000 10 to 12 10 $ 100 $ 900 - 1,000 Clothes Dryers#3 2009 2019 Unit 1 $ 1,000.00 $ 1,000 10 to 12 10 $ 100 $ 900 - 1,000 Clothes Dryers #4 2009 2019 Unit 1 $ 1,000.00 $ 1,000 10 to 12 10 $ 100 $ 900 - 1,000 Clothes Dryers 45 2009 2019 Unit 1 $ 1,000.00 $ 1,000 10 to 12 10 $ 100 $ 900 - 1,000 Clothes Dryers #6 2009 2019 Unit 1 $ 1,000.00 $ 1,000 10 to 12 10 $ 100 $ 900 - 1,000 Clothes Dryers #7 2009 2019 Unit 1 $ 1,000.00 $ 1,000 10 to 12 10 $ 100 $ 900 - 1,000 Clothes Dryers #8 2009 2019 Unit 1 $ 1,000.00 $ 1,000 10 to 12 10 $ 100 $ 900 - 1,000 Clothes Dryers #9 2009 2019 Unit 1 $ 1.000.00 $ 1,000 10 to 12 10 $ 100 $ 900 - 1,000 Subtotal $ 95,539 $ 847,180 304,924 52,570 Annual Replacements Concrete Sidewalk {10% per year) 1994 2018 Square Feet 590 $ 9.00 $ 5,310 1 1 $ 5,310 $ 10,620 5,310 5,310 Replace Concrete Curb/Gutter (10% per year) 1994 2018 Lineal Feet 259 $ 46.00 $ 11,914 1 1 $ 11,914 $ 23,828 11,914 11,914 Apartment Refrigerators 1994 2018 Unit 5 $ 725.00 $ 3,625 1 1 $ 3,625 $ 7,250 3,625 3,625 Apartment Ranges 1994 2018 Unit 6 $ 600.00 $ 3,600 1 1 $ 3,600 $ 7,200 3,600 3,600 Unit Carpet 1994 2018 Unit 3 $ 2,300.00 $ 6,900 I 1 $ 6,900 $ 13,800 6,900 6,900 Unit Vinyl 1994 2018 Unit 3 $ 1,325.04 $ 3,975 1 1 $ 3,975 $ 7,950 3,975 3,975 A1C Units (replacement) 1994 2018 Unit 4 $ 500.00 $ 2,000 1 1 $ 2,000 $ 4,000 2,000 2,000 Subtotal $ 37,324 $ 74,648 37,324 37,324 GRAND TOTAL $ 132,863 $ 921,828 342,248 89,894 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 - 9,440 - - 9,440 - - 9,440 - - 9,440 - - 9,440 - - 9,440 - - - - 7,800 - - - - - - - - - 7,800 - - - - - - - - 7,800 - - - - - - - - - 7,800 - - - - - - - - - - - - - - - - - - - - - - - 9,400 3,192 - - - - 3,192 - - - - 3,192 - - - - 3,192 - - - - - - - 70,400 - - - - - - - - - - - - - - - - - - - - - - - - 2,664 - - - - - - - - - - - - - - - - - - 23,604 - - - - - - - - - - - - - - - - - - 8,806 - - - - - - - - - - - - - - - - - - 2,350 - - - - - - - - 48,400 - - - - - - - - - - - - - - - 48,400 - - 5,900 - - - - - - - - - - - - - - - 5,900 - - - - - - - - - - - - - - 4,000 - - - - - - - - - - - - - 8,800 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,300 - - - - - - - - - - - - - - - - 4,100 - - - - - - - - - 6,700 - _ _ _ _ _ _ - 6,700 - - - - - - - - - - - - - - - - - - - - 5,000 - - - - - - - - - - 7,600 - - - - - - - - - - - - - - - 11,400 - - - - - - - 11,400 - - - 24,000 - - - - - - - - - 24,000 - - - - - - - - - - - - - - - - - - - - - - - - - 3,300 - - - - - - - - - - - - - - - - - - - 3,960 - - - - - - - - - - - - - - - - 5,406 - - - - - - - _ _ _ _ _ _ _ _ _ _ - 3,450 - - - - - - 87,170 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 56,000 - - - - - - - 70.000 - - - - - - - - - - - - - - - - - - 25,000 - - - - - - - - - - - - - - - - 48,000 - - - - - - - - - 48,000 - - - - - - - - 48,000 - - - - - - - - - 48,040 - - - - - - - 48,000 - - - - - - - - - 48,000 - - - - - - - - - - - - 126,854 - - - - - - - - - - - 9,000 - - - - - - - - - - - 9,000 - - - - - - - - - - - - - - - - - - 10,500 - - - - - - - - - - - - - - - - - - 7,200 - - - - - - - - - - - - - - - - - - 10,500 - - - - - - - - - - - - - - - - - - 7,200 - - - - - - - - - - - - - - - - - - 10,500 - - - - - - - - - 7,200 - - - - - - - - - - - - - - - - - - - - - - - - - - - 13,200 - - - - - - - - - - - - - - - - - - 10,500 - - - - - - - - - - - 14,500 - - - - - - - - - - - - - - - - - - - 13,000 - - - - - - - - - - - - - - - - - - - - - - - - 7,000 - - - - - - - - - - - - - - - - - - 5,500 - - - - - 7,000 - - - - - - - - - - - - - - 7,000 - - - 5,500 - - - - - - - - - - - - - - 5,500 - - - - - - - - - - - - - - - - - - - - - 58,000 - - - - - - - - - - - - - - - - - - 12,000 - - - - - - - - - - - - - 9,000 - - - - - - - - - - - - - - - - - - 9,000 - - - - - - - - - - - - - - - - - - 7,800 - - - - - - - - - - - - - - - - - - 7,800 - - - - - - - - - - - - - - - - - - 7,800 - - - - - - - - - - - - - - - - - - 7,800 - - - - - - - - - - - - - - - - - - 7,800 - - - - - - - - - - - - - - - - - - 7,800 - - - - - - - - - - - - - - - - - - 7,800 - - - - - - - - - - - - - - - - - - 7,800 - - - - - - - - - - - - 10,500 - - - - - - - - - 10,500 - - - - - - - - 10,500 - - - - - - - - - 10,500 - - - - - - - - 10,500 - - - - - - - - - 10,500 - - - - - - - - - - 1,200 - - - - - - - - - - - - - - - - - - 1,200 - - - - - - - - - - - - - - - - - - 1,200 - - - - - - - - - - - - - - - - - 1,200 - - - - - - - - - - - - - - - - - - 1,200 - - - - - - - - - - - - - - - - - 1,200 - - - - - - - - - - - - - - - - - - 1,200 - - - - - - - - - - - - - - - - - - 1,200 - - - - - - - - - 93,992 18,440 1159,600 5,310 5,310 5,310 11,914 11,914 11,914 3,625 3,625 3,625 3,600 3,600 3,600 6,900 6,900 6,900 3,975 3.975 3,975 2,000 2,000 2,000 37,324 37,324 37,324 131,316 55,764 196,924 - 269,210 3,192 14,500 207,690 5,310 5,310 5,310 5,310 5.310 11,914 11,914 11,914 11,914 11,914 3,625 3.625 3,625 3,625 3,625 3,600 3,600 3,660 3,600 3,60❑ 6,900 6,900 6.900 6,9❑0 6,900 3,975 3,975 3,975 3,975 3,975 2,000 2,❑00 2,000 2,000 2.000 37,324 37,324 37,324 37,324 37,324 37,324 306,534 40,516 51.824 245,014 - 1,200 - - 1.000 - - 1,000 - - 1,000 5,310 - 1,000 - 5.310 1,000 - - 1,000 11,914 11,914 1,000 - - 1,000 3,625 - 1.000 - - 19,800 81,656 5,310 5,310 5,310 11,914 11,914 11,914 3,625 3,625 3,625 3,600 3,600 3,600 6,900 6,900 6,900 3,975 3,975 3,975 2,000 2,000 2,000 37,324 37,324 37,324 37,324 57,124 118,980 - 163,600 180,940 - 83,092 83,396 34,800 90,660 5,310 5,310 5,310 5,310 5,310 5,310 5,310 5.310 11,914 11,914 11,914 11,914 11,914 11,914 11,914 11,914 3,625 3,625 3,625 3,625 3,625 3,625 3,625 3,625 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 6.900 6,900 6,900 6,900 6,900 6,900 6,900 6,900 3,975 3,975 3,975 3,975 3,975 3,975 3,975 3,975 2,000 2,000 2,400 2,000 2,000 2,000 2,000 2,000 37,324 37,324 37,324 37,324 37,324 37,324 37,324 37,324 37.324 200,924 218,264 37,324 120,416 120,720 72,124 127,984 2039 2840 2041 2042 2943 2044 2045 2446 2047 2048 2049 2050 9,440 - - 9,440 - - 9,440 - - 9,440 - - - - - 7,800 - - - - - - - - - - - 7,800 - - - - - - - - - 3,192 - - - - 3,192 - - - - 3,192 - - - - - 70,400 - - - - - - - - - 2,664 - - - - - - - - - - - 23,604 - - - - - - - - - - - 8,806 - - - - - - - - - - - 2,350 - - - - - - - - - - - - - - - - - 4,000 - - - - - - 8,800 - - - - - - - - - - - - - 6,700 - - - - - - - - 7.600 - - - - - - - - - - - - 11,400 - - - - - - - - 24,000 - - - - - - - - - 24,000 - - - - - 87,170 - - - - - - - - - - - 21,370 - - - - - - - - - 48,000 - - - - - - - - - - - 48,000 - - - - - - - - - - - 48,000 - - - - - - - - - - - - - - - - 125,850 - - - - - - 154,980 - - - - - - - - - - - 34,200 - - - - - - - - - - - - - - 9,000 - - - - - - - - 346,000 - - - - - - - - - - - - - - - - - 10,500 - - - - - - - - - - - 7,200 - - - - - - - - - - - 10,500 - - - - - - - - - - - 7,200 - - - - - - - - - - - 10,500 - - 7,200 - - - - - - - - - - - - _ _ _ _ _ _ _ _ 13,200 - - - - - - - - - - - 10,500 - - - - 14.500 - - - - - - - - - - - - 13,000 - - - - - - - - - - - - - - - - - 7,000 - - - - - - - - - - - 5,500 - - - - - - - - - - - - - 7,000 - - - - - - - - - - - 5,500 - - - - - - - - - 9,000 - - - - - - - - - - - 9,000 - - - - - - - - - - - 7,800 - - - - - - - - - - - 7,800 - - - - - - - - - - - 7,800 - - - - - - - - - - - 7,800 - - - - - - - - - - - 7,800 - - - - - - - - - - - 7,800 - - - - - - - - - - - 7,800 - - - - - - - - - - - 7,800 - - - - - - - - - - 10,500 - - - - - - - - - - - 10,500 - - - - - - - - - - - 10,500 - - - 1,200 - - - - - - - - - 1,200 - 1,200 - - - - - - - - - 1,200 - 1,200 - - - - - - - - - 1,200 - 1,200 - - - - - - - - - 1,200 - 1,200 - - - - - - - - - 1,200 - 1,200 - - - - - - - - - 1,200 - 1,200 - - - - - - - - - 1,200 - 1,200 - - - - - - - - - 1,200 - 1,200 - - - - - - - - - 1,200 - 1,000 - - - - - - - - - 1,000 - 1,000 - - - - - - - - - 1,000 - 1,000 - - - - - - - - - 1,000 - 1,000 - - - - - - - - - 1,000 - 1,000 - - - - - - - - - 1,000 - 1,000 - - - - - - - - - 1,000 - 1,000 - - - - - - - - - 1,000 - 1,000 - - - - - - - - - 1,000 - 1,000 - - - - - - - - - 1,000 - 36,440 27,192 14,500 762,244 20,200 178,940 28,332 - 158,350 175,940 19,800 39,692 5,310 5,310 5,310 5,310 5,310 5,310 5,314 5,310 5,310 5,310 5,310 5,310 11,914 11,914 11,914 11,914 11,914 11,914 11,914 11.914 11,914 11,914 11,914 11,914 3,625 3,625 3,625 3,625 3,625 3,625 3,625 3,625 3,625 3,625 3,625 3,625 3,600 3,600 3,600 3,600 3,600 3,600 3,500 3,600 3,600 3,600 3,600 3,600 6,900 6,900 6,900 6,900 6,900 6,900 6,900 6,900 6,900 6,900 6,900 6,900 3,975 3,975 3,975 3,975 3,975 3,975 3,975 3,975 3,975 3,975 3,975 3,975 2,000 2,000 2,040 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 37,324 37,324 37,324 37,324 37,324 37,324 37,324 37,324 37,324 37,324 37,324 37,324 73,764 64,516 51,824 799,568 57,524 216,264 65,656 37,324 195,674 213,264 57,124 77,016 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,600 100,000 (100,000) ( 200,000) (300,000) Plymouth Towne Square Historical and Projected Replacement Reserve and Disbursements 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 v e 0 A A � A * �v oe A % rA s d x� ® V♦� �4 2018 2619 2020 2021 2022 U2024 � Actual Reserve Balance INNw- ; Projected Reserve Balance --41x-Actual Replacement Disbursements - - Projected Replacement Disbursements Assumes no additional funding of the reserve and annual operating transfers remain at $84,000. includes annual replacement disbursements. Replacement disbursements have historically been funded through Operating. Replacement reserves were utilized in 2012 and 2017. 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Actual Reserve Balance 682,026 569,857 682,528 766,476 853,905 787,188 858,682 967,584 983,700 830,709 Projected Reserve Balance 335,367 77,119 71,225 23,909 52,145 (60,779) (14,103) Actual Replacement Disbur: 51,042 48,861 47,558 68,893 248,560 69,908 79,792 160,169 112,835 789,500 342,248 89,894 131,316 55,764 196,924 37,324 306,534 Projected Replacement Disbursements 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2442 2043 2444 (236,637) (193,153) (160,977) (321,991) (275,315) (248,439) (283,419) (236,743) (353,667) (487,931) (441,255) (477,671) (514,391) (502,515) (546,499) (536,263) (516,779) (484,603) (1,200,171) (1,173,695) 40,516 51,824 245,014 37,324 57,124 118,980 37,324 200,924 218,264 37,324 120,416 120,720 72,124 127,984 73,764 64,515 51,824 799,568 57,524 216,264 2045 2046 2047 2048 2049 2050 (1,305,958) (1,287,514) (1,240,938) (1,352,512) (1,481,876) (1,455,000) 65,656 37,324 195,674 213,264 57,124 77,016 1,100,000 1,000,000 900,000 800,000 700,000 600,000 - 500,000 400,000 300,000 200,000 �\ • 100,000 o • 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 � Actual Reserve Balance '71 Projected Reserve Balance --40--Actual Replacement Disbursements - Projected Replacement Disbursements Assumes a $450,000 one-time funding of the reserve and $133,000 annual operating transfers thereafter. Replacement disbursements have historically been funded through Operating. Replacement reserves were utilized in 2012 and 2017. Plymouth Towne Square Historical and Projected Replacement Reserve and Disbursements Actual Reserve Balance Projected Reserve Balance Actual Replacement Disbursements Projected Replacement Disbursements 2027 2008 2049 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 682,026 569,857 682,528 766,476 853,905 787,188 858,682 967,584 983,700 830,709 788,965 579,717 622,823 624,507 701,743 637,819 51,042 48,861 47,558 68,893 248,560 69,908 79,792 160,169 112,835 789,500 342,248 89,894 131,316 55,764 196,924 37,324 2024 2025 2025 2027 2028 2029 2430 2031 2032 2033 2034 2435 2036 2037 2038 2039 2040 2041 2042 2043 2044 733,495 559,961 652,445 733,621 621,607 717,283 793,159 807,179 942,855 834,931 749,667 845,343 857,927 870,207 931,083 936,099 995,335 1,063,819 1,144,995 478,427 553,903 306,534 40,516 51,824 245,014 37,324 57,124 118,980 37,324 200,924 218,264 37,324 120,416 120,720 72,124 127,984 73,764 64,516 51,824 799,568 57,524 216,264 2045 2046 2047 2048 2049 2050 470,640 537,984 633,660 570,986 490,722 566,598 65,656 37,324 195,674 213,264 57,124 77,016 A B C D F G H I ,] K L M 1 Long Range Projection Vicksburg Grassing T 2 3 2018 4 ORIGINAL ADJUSTED 5 CONSTRUCTION/ PROJECTED P_ROJECTED _ REPLACEMENT YEAR _ _ UNIT MEASUREMENT QUANTITY UNIT COST TOTAL _ COST LIFETIME YEARS MIN LIFETIME YEARS _ANNUAL RESERVE ACCUM RESERVE 6 REPLACEMENT REPLACEMENT 7 ITEM YEAR YEAR 8 Roof (asphalt) Fascia & Soffit Siding (removal & reinstall) Caulking (remove & reinstall) Parking Lot & Trail Replacement Asphalt (seallstripe) Faint Common Areas" Carpet Main Entryway* Carpet Community Room* carpe -t --Resident Corridors* 2007 2007 2007 2007 2007 2015 2007 2016 2007 2007 2027 2037 2037 _ 2025 _ 2024 ^ 20181 2019 _ 2024! 2019' - -f -- 20191 Square Feet Liner Feet Square Feet Linear Feet. Square Feew Square Feet Square Feet Square Yard Square Yard Square Yard 42,000 1,450 38,000 39,000 16,000 18,000 24,000 115 1041 1,760 $ $ $ $ $ $ $ $ $ $ 2.95 $ 19.40 $ 5.50 $ 1.78 $ 3.50 $ 0.59 $ _ 2.10 $ 42.00 $ 42.00 $ 40.00 $ 123,9001 27,550 209,000 69,420 56,000 9,444 50,400 , 4,830 4,368 70,400 20 to 25 30 to 35 30 to 35 '18 to 2_0 17 to 20 l -3t o 5 12 to 15 8 to 10 12 to 15 12 to 15 20 30 30 18 17 3 12 8 12 12 $ $ $ $ $ $ $ $ $ $ 6,195 1 $ 918 $ 6,967 $ 3,857 $ 3,294 $ 3,147 $ 4,200 -V-46,200 _ 604 364 $ 5,867 $ 68,145 10,102 76,633 42,423 36,235 9,440 1,208 4,004 64,533 9 10 11 12 13 14 15 16 17 18 Carpet Stairwells* 2007 20221_ Square Yard 150 $ $ 47.00 3.50 $ $ $ $ $ $ 7,450 846 2,350 840 35,000 35,000 15 to 20 12 to 15 - 15 to 20 5 30 to 35 30 to 35 15 12 15 5 30 30 $ $ w $ $ $ $ 470 70 � 157 168 1,167 1,167 $ $ $ $ $ $ 5,170 770 1,723 336 12,833 12,833 19 _ _ Carpet Common Area small spaces (office, library, exercise room)* 2019 2007 Square Yard 240 20 Hard surface areas - trash rooms, 1- storage lockers, maintenance rooms* _ 2007 _ 2022 Square Yard 50 ` $ 47.00 Carpet - Elevators* _ 2016 2021 Square Yard 20 $ 42.00 Elevator #1 Modernization 2007 2037 Unit 1 { $ 35,000.00 21 22 23 Elevator #2 Modernization _ York AHU #1 (Community Room} 2007 2006 2037 2021 Unit Unit 1 1 $ $ 35,004.00 8,700.00 24 $ 8,700 15 to 20 15 $ 580 $ 6,960 25 York CU #1 (Garage) York AHU #2 (2nd Floor) York CU #2 (Garage) York AHU #3 (4th Floor West Hallway) York CU 93 (Garage) York AHU #4 (4th Floor East Hallway) 2006 2006 2006 2006 2006 2006 2021 2021 2021 2021 20211 2021 Unit1 Unit Unit Unit Unit - - - Unit_ 1 1 1 _ - 1 1 1 $ $ $ $ I $ $ 5,500.00 $ 8,100.00 $ 4,750.00 $ 8,100.00 $ 5,250.00: $ 8,100.40 $ 5,500 8,100 4,750 8,100 5,250 8,100 15 to 20 15 to 20 15 to 20 15 to 20 15 to 20 15 to 20 15 15 15 15 15 15 $ $ $ $ $ $ 387 $ 540 $ 317 $ 540 $ 350 $ 540 $ 4,400 6,480 3,800 6,480 4,200 6,480 26 27 28 29 30 31 York CU #4 (Garage) 2006 2021 Unit 1 $ 4,750.00 $ 4,750 15 to 20 '15 � $ 317 I $ 3,800 32 _ York AHU #5 (4th Floor East Hallway) 2006 _ 2021 Unit 1 $ 5,500.00_ $ 5,500 15 to 20 15 $ 367 $_ $ $ 4,400 3,800 44,000 33 York CU #5 (Garage) - 2006 2021 Unit 1 $ 4,750.00 $ 4,750 15 to 20 - - 15 $ 317 1 34 Titan MUA (Garage) AO Smith DHWH #1 (Garage) 2006 2006 2021 2018 Unit Unit 1 1 $ $ 55,000.00 12,000.00 $ $ 55,000 12,000 1 15 to 20 10 to 12 15 10 $ $ 3,667 1,000 35 $ 12,000 36 AO Smith DHWH. #2 (Garage) 2006 2018 Unit 1 $ 12,000.00 $ 12,0001 10 to 12 10 $ 1,000 $ 12,000 37 AO Smith DHWH #3 (Garage) AO Smith DHWH #4 (Garage) Well McClain Boiler (Garage) Greenheck EF (Garage) Water softener 2017 2006 2006 2006 2007 2027 2018 20181 20181 2021; Unit Unit Unit Unit Unit 1 1 1 1 1 $ $ $ $ $ 12,000.00 $ 12,000.00 $ 12,250.00 $ 10,000.00 ! $ - - 9,000.00 $ 12,000 1 12,000 12,250 10,000 9,000 , 10 to 12 10 to 12 12 to 15 121o'15 15 to 20 10 10 12 12 15 $ $ $ $ $ 1,200 1,000 1,021 833 643 $ $ $ $ $ 1,200 12,000 12,250 10,000 7,071 38 39 40 41 42 Common Area Furniture - Dining Room 2007 _ 2022; Unit 1 $ 33,600.00 $ 33,600_ 15 to 20 15 $ 2,240 1 $ 24,640 43 Common Area Furniture - Library- Common Area Furniture - Lobby Common Area Furniture - 2nd/3rd floor Lobby _ Common Area Furniture - Outdoor Window Caulking (brick sills) Window Replacement/Repair 2007 20161 2007 2012 2007 2007 __20221 20.25 20221 2022 - 2022 2027 Unit Unit Unit _ Unit f Unit Unit 1 $ 1 $ 1 $ -1 $ 172 $ 364 $ 5,000.00 6,100.00 4,200.00 7,000.00 46.51 1,000.00 $ $ $ { $ $ $ 5,000 6,100 4,200 7,000 8,000 364,000 15 to 20 9 to 12 15 to 20 10 to 12 �15 to 20 20 to 25 __15 9 15 10 15 20 $ $ $ $ $ $ 333 _$_ 6.78 $ 280 $ 700 $ 533 $ 18,200 $ 3,667 1,35.6_ 3,080 4,200 5,866 200,200 44 45 46 TT 48 49 Magic Pac Caulking (brick sills) 2007 2022 Unit 58 $ 36.76 $ 2,500 15 to 20 15 $ 167 v $ 4 1,833 50 Garage Floor Sealer 2016 2024 Square Feet 29,500 $ $ $ 0.19 20,000.00 - $__ 5,500 8 to 12 8 $ 687? $ 1,375 51 Generator - Major Service 2007 203.7 Unit 1 $ 20,000 $ - 20 to 25 20 $ 567 $ 0 0 $ 77,692 $ 7,333 807,461 52 Subtotal 01 0 0 4 53 54 Annuai ReQlacements: A S C D F G H I J K L M 55 __ 56 Unit Carpet (97) 2007 2018 Unit 2 3,500.00 7,000 1 1 7,000 7,000 57 Unit Vinyl (97) 2007 20181 Unit 2 1,500.00 3,000 1 1 3,000 3,000 58 Unit Washers (97) 2007 20'18 Unit 3 575.00 1,725 1 1 1,725 1,725 59 Unit Dryers (97) Refrigerators (97) Dishwashers (97) 2007 2007 2007 20'18 20181 2018 Unit Unit Unit 2 2 2 450.00 950,00 270.00 900 1,900 540 1 1 1 1 1 1 900 1,900 540 900 1,900 540 60 61 62 Microwaves (97) 2007 20181 Unit 3 195.00 585 1 1 585 585 63 Ranges (97) 20071 20181 Unit 1 400.00 400 1 1 400 400 64 Replace Concrete Curb/Gutter (1O%Iyr) 2007 2018 Linear Feet 200 46.00 9,200 1 1 9,200 9,200 65 Concrete Sidewalk (10%/yr) 2007 2018 Square Feet 750 9.00 6,750 1 1 6,750 6,750 66 Magic Pacs (97) 2007 2098 Unit 2 6,000.00 12,000 1 1 12,000 12,000 44,000 44,000 J67Subtotal G RAN 0 TOTAL 121,692 895,461 ❑ P 0 R S T u W W x Y Z AA AB AC AD AE AF 1 _ 3 4 5 6 7 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2036 8 - - - - - - - - - 123,900 - - - - - - - - 9- 10- 11 - - - - - - - 69,420- 12 - - ^ - - ^ 56,000 - - - - - - - - - - - 13 9,440 - - 91440 - - 9,440 - - 9,444 - - 9,440 - ^ 9,440 - - 14 - 50,400 - ^ - - - ^ _ - - - - 50,400 - - - - 15 - - - - - - 4,830 - - - - ^ - - 4,830 ^ - - 16 - 4,368 - - - - - - - - - - - 4,368 - - - - 171 70,400 - - - - - - - - - - - 70,440 18 - - - - 7,050 - ^ - - - - - - - - - - - 19 - 840 - - - - - - - - - - - 840 20 - - - - 2,350 - - - - - - - - - - - - - 21 - - - 840 - - - - 840 - - - - 840 - - - - 22- 23 - -- - - - - - - - - - - - - - - - 24 - - - 8,700- 25 - 5,500- 26 - - - 8,100- 27 - - - 4,750 - - - - - - - - - - - - - - 28 - - - 8,100- 29 - - - 5,250- 30 - - - 8,100 - - - - - - - - - - - - - - 31 ---- 32 _ - - 5,500 - - - - - - - - - - - - - - 33 - - - 4,750- 34 - _ - 55,000 35 12,400 - - - - - - - - - 12,000 - - - - - - - 36 12,000 - - - - _ - - - - 12,000 - - - - - - - 37 - - - - - - - - - 12,000 -- 38 12,000 - - - - - - _ - - 12,000 39 12,250 - - - - ' - - - - - - 12,250 - - - - - 40 14,000 - - - - - - - - - - - 10,000 - - - - - 41 - - - 9,000 - - - - - - - - - - - - - - 42 ' - - - 33,600- 43 ^ - - - 5,000 _ - - - - - - - - - - - - 44 - - - - - - 6,100 - - - - - - - - 6,100 - 45 - - - - 4,200 - - - 46 - - - - 7,000 - - - - - - - - - 7,06-0'-- ,000-47 47 - - - - 8,000- 48 - - - - - - - - - 364,000- 49 - - - ^ 2,500 - - - - -- 50 - - - - - - 5,500 - - - - - - - 5,500 - - - 51 - - - - - - - - - - - - - - - - - - 52 67,690 126,008 - 137,780 69,699 - 75,770 75,520 840 509,340 36,000 - 31,690 126,848 17,330 9,440 6,100 - 53 54 ❑ P 0 R S T U V W X Y z AA A8 AC AD I AE AF 55 _7,0_00 - 3,000 7,000 3,000 7,000 3,000 7,000 3,000 7,000f 3,000 ; 7,000 3,000 7,000 3,000 7,000 3,000 7,000 3,000 7,004 3,000 7,0001 3,000 f - -7,000 3,000 _ 7,000_ 3,000 56 7,000 7,000 - 7,000 7,000 7,004 57 3,000 3,000 3,000 3,000 3,000 58 1,725_ 1,725 1,725 1,725 1,725 1,725 1,725 1,725 1,725 1,725 1,725 1,725 1,725 1,725 900 1,900 540 1,725 900 1,900 540 1,725 900; 11900 540 1,725 900 1,900 540 1,725 900 1,900 540 59 900 9_00 904 900 1,900 900 1,900 940 1 1,900 900 900 900 900 900 900 9900 60 1,900 1,900 1,900 _ 1,900 1,904 1,900 1,900 1,900 1,900 1,900 540 544 544 540 540 540 540 61 540 540 540 540 540 1 540 62 5_85 - 585 585 585 585 5851 585 585T--585 585 585 5851 585 585 585 585 585 63 400 400 400 400 -5851 400_ 400 4001 400, 400. 400 9,200 400 9,200 400 9,200 400 9,200 j- 400 9,200 400 9,200 400 9,200 400 9,200 400 9,200 64 9,200 6,750 9,200 ---6.750 9,200 9,200 6,750 9,200 9,200 6,750 12,000. 9,200 5,750 12,000 9,200 - 6,750 12,000 9,200 6,750_6,750 12,000 65 _ 6,750 12,000 6,750 6,7501 6,750 8,750 6,750 6,750 6,750 6,750 6,750 66 12,000 12,000 12,000 12,000 - - 12,000 44,000 12,000 f 44,040 12,000 44,000 12,000 44,000 12,000 12,000 12,000 12,000 12,000_ 67 _ 44,000 44,000 44,000 44,000 +44,000 44,400 44,000 f 44,000 44,000 44,800 44,000 44,000 44,000 44 000 68_ 111,690 170,008 69 44,000. '181,780 1 113,699 44,400 119,770 1 119,520 44,840 553,340 , 80,000 441000 75,690 170,848 61,330 1 53,440 50,100 1 44,000 AG AH Al AJ AK AL AM AN AO AR AD AR AS AT AU AV 1 2 - - -- 3 4 5 6 _ 7 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 i - 8 - - - - - - - - - - - 123,900 - - - 9 - 27,550 - - - - - - - - - - - - - 10 - 209,000 - - - - - - 11 - - - - - - - 69,420 - - - - - - - 12 - - - - - 56,000 - - - - - - - - - 13 9,440 - - 9,440 - - 9,440 - - 9,440 - - 9,440 - - 14 - - - - - - 50,400 - - - - - - - 15 - - - _- - 4,830 - - - - - - - 4,830 - - 16 - - - - - - - 4,368 - - - - - - - 17 - - - - - - - 70,400 - - - - - - - 18 - 7,050 - - - - - - - - - - - - - 19 - - - - - - - 840 20 - 2,354 - - - - - - _ _ - 21 84.0 - - - - 840 - - - - 840 22 - 35,000 - - - - _ _ _ - 23 - 8,700 35,000 - - - - - - - - - - - - - 24 25 5,500 - - - - - - - - - - - - - - 26 8,100 - - - - - - - - - - - - - - 27 4,750 - - - - - - - - - - - - - - 28 8,100 29 5,250 30 8,100 31 4,750 - - - - - - - - - - - - - - 32 5,500- 33 4,750 34 55,000 - - - - - - - - - - - - - - 35 - - 12,000 - - - - - - - - - 12,000 - - 36 - - 12,000 - - - - - - - - - 12,000 - - 37 38 - - 12,000 - - 12,000 - - - - _ - - - - - - - - - - - 12,000 - - - - 12,000 - - 39 - - - I - - - 12,250 - - - _ _ _ 40 - - - - - - 10,400 - - - - - - - - 41 _ 9,000 _ _ _ _ _ - 42 - 33,600 - - - - - - - - - - - - - 43 - 5,000 - - - - - - - - - - - - - 44 - - - - - - - 6,100 - - - - - - - 45 - 4,200 - - - - - - - - - - - - - 46 - - - - - - 7,000 - - - - - - - - 47 - 8,000 - - - - - 48 - - - - - - - - - - - 364,000 - - - 49 - 2,500 - - - - - - - - - - - - - 50 - - - - 5,500 - - - - - - - 5,500 - - 51 - 20,000 - - - - - - - - - - - - - 52 137,780 401,245 36,000 9,440 T 10,330 56,840 38,690 201,528 - 9,440 840 499,900 55,770 - 53 54 - --- - AG AH Al AJ AK AL AM AN AO AP AQ AR AS AT AU AV 55 7,000 7,000 7,000 7,000 7,000 7,000 _ 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 56 57 3,000 3,000 3,000 3,000 3,000 3,004 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 58 1,725 1,725 1,725 1,725 1,725 1,725 1,725 1,725 1,725 1,725 1,725 1,725 1,725 1,725 1,725 59 60 900 1,900 900 900 900 1,900 900 1,900 900 1,900 900 1,900 900 1,900 900 1,900 900 1,900 900 1,900 900 1,900 900 1,900 900 1,900 900 1,900 1,900 1,900 61 _ 540 585 540 544 540 585 540 585 540 585 540 585 540 585 540 585 540 585 540 585 540 585 540 585 540 585 540 585 62 585 585 63 400 400_ ! 400 400 400 400 400 400 400 400 400 400 400 400 400 64 9,200 _9,200 8,750 9,200 9,200 9,200 9,_200 9,200 9,200 9,200 9,200 9,200 9,200 9,200 9,200 9,200 65 6,750 5,750 6,750 6,750 6,750 6,750 6,750 6,750 8,750 6,750 6,750 6,750 6,750 6,750 661 12,000 12,000 12,000 12,000 1 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,0_00 6744,004 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 60 181,780 1 445,249 80,0001 53,440 54,330100,840 82,6901 245,528 44,000 53,440. 44,840 543,900 99,774 44,000 44,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 (100,000) (200,06Q) Vicksburg Crossing Replacement Reserve and Disbursements 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Actual Reserve Balance Projected Reserve Balance Needed Actual Replacement Disbursements - - Projected Replacement Disbursements Assumes no additional funding of the reserve and annual operating transfers remain at $72,000. Replacement disbursements have historically been funded through Operating. Actual Reserve Balance Projected Reserve Balance Needed Actual Replacement Disbursements Projected Replacement Disbursements 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2419 2020 2021 2022 2023 2024 2025 2026 60,582 121,095 181,328 243,139 307,336 362,516 421,944 487,960 493,987 628,602 588,912 490,904 518,904 409,124 367,424 395,424 347,654 300,134 13,517 29,103 22,114 21,840 45,911 70,161 52,516 61,512 79,500 111,690 170,008 44,000 181,780 113,699 44,000 119,770 119,520 44,840 • �� 2020 2021 2022 2023 2024 2025 2026 2027 Actual Reserve Balance Projected Reserve Balance Needed Actual Replacement Disbursements - - Projected Replacement Disbursements Assumes no additional funding of the reserve and annual operating transfers remain at $72,000. Replacement disbursements have historically been funded through Operating. Actual Reserve Balance Projected Reserve Balance Needed Actual Replacement Disbursements Projected Replacement Disbursements 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2419 2020 2021 2022 2023 2024 2025 2026 60,582 121,095 181,328 243,139 307,336 362,516 421,944 487,960 493,987 628,602 588,912 490,904 518,904 409,124 367,424 395,424 347,654 300,134 13,517 29,103 22,114 21,840 45,911 70,161 52,516 61,512 79,500 111,690 170,008 44,000 181,780 113,699 44,000 119,770 119,520 44,840 2027 2428 2829 2030 2031 2032 2033 2034 2035 2036 2437 2038 2039 2040 2041 2642 2043 2044 2045 2046 2047 327,294 (154,046) (162,046) (134,046) (137,736) (236,584) (225,914) (207,354) (185,454) (157,454) (267,234) (640,483) (648,483) (629,923) (612,253) (641,093) (651,783) (825,311) (797,311) (778,751) (751,591) 553,340 80,000 44,000 75,690 170,848 61,330 53,440 50,100 44,000 181,780 445,249 80,000 53,440 54,330 100,840 82,690 245,528 44,000 53,440 44,840 543,900 2048 2049 2050 (1,223,491) (1,251,261) (1,223,261) 99,770 44,000 44,000 1,000,000 900,0()0 800,0()0 700,000 600,000 500,000 400,000 300,000 200,000 100,()0() Vicksburg Crossing Replacement Reserve and Disbursements i 1 ► l ► Op 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 � Actual Reserve Balance Projected Reserve Balance Actual Replacement Disbursements - Projected Replacement Disbursements Assumes a $145,000 one-time funding of the reserve and $122,000 annual operating transfers thereafter. Replacement disbursements have historically been funded through Operating. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Actual Reserve Balani 60,582 121,095 181,328 243,139 307,336 362,516 421,944 487,960 493,987 Projected Reserve Balance 773,769 784,079 736,071 814,071 754,291 762,591 840,591 842,821 845,301 922,461 491,121 Actual Replacement C 13,517 29,103 22,114 21,840 45,911 70,161 52,516 61,512 79,500 111,690 170,008 44,000 181,780 113,699 44,000 119,770 119,520 44,840 553,340 80,000 Projected Replacement Disbursements 2029 2830 2031 2032 2033 2034 2035 2036 2437 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 533,121 611,121 657,431 608,583 669,254 737,814 809,714 887,714 827,934 504,684 546,684 615,244 682,914 704,074 743,384 619,856 697,856 766,416 843,576 421,676 443,906 521,906 44,000 75,690 170,848 61,330 53,440 50,100 44,000 181,780 445,249 80,000 53,440 54,330 100,840 82,690 245,528 44,000 53,440 44,840 543,900 99,770 44,000 44,000 rp)City of Plymouth Adding Quo[ity to Life SPECIAL COUNCIL/PLANNING COMMISSION/HRA MEETING April 24, 2018 Agenda 2C Number: To: Dave Callister, City Manager Prepared by: James Barnes, HRA Manager Reviewed by: Steve Juetten, Community Development Director Item: TIF District Management Review and Analysis 1. ACTION REQUESTED: Review the updated Management Review and Analysis for the City of Plymouth's and the Plymouth Housing and Redevelopment Authority's Tax Increment Financing (TIF) Districts. 2. BACKGROUND: Periodically over the past 10 years, the City has had the financial consultant, Ehlers, provide a review of all of the City's and HRA's TIF districts. The attached current report has been expanded to include additional information and data that provide, the City, HRA and staff an opportunity to better oversee the districts administration. 3. ATTACHMENTS: 2017 Management Review Analysis TIF Districts Page 1 -0— Economic Development and Redevelopment August 2017 Management Review & Analysis Tax Increment Financing Districts City of Plymouth, Minnesota r;pm City of EHLERS LEADERS IN PUBLIC FINANCE v ymoui n vmw,ehters- inc. com Minnesota phone 651-697-8500 3060 Centre Pointe Drive Offices also in Wisconsin and Illinois fax 651-697-8555 Roseville, MN 55113-1122 toll free 800-552-1171 Page 2 Table of Contents Management Review & Analysis...................................................................................................... 3 Overview..................................................................................................................................................................................... 3 TIFDistrict Summary................................................................................................................................................................. 4 Obligationsof the TIF Districts.................................................................................................................................................. 7 DeficitPooling Program............................................................................................................................................................. 8 TIFfor Affordable Housing...................................................................................................................................................... 13 TIFas a Development Tool...................................................................................................................................................... 15 AdministrativeExpenses.......................................................................................................................................................... 18 Assumptions.............................................................................................................................................................................. 18 Recommendations..................................................................................................................................................................... 19 Tax Increment Financing Districts........................................................................................................................................ 21 TIFI-1 — Shops at Plymouth Creek......................................................................................................................................... 21 TIF1-2 — Vicksburg Commons................................................................................................................................................ 29 TIF1-3 — Plymouth Crossroads Station.................................................................................................................................... 38 TIF7-4 — Hoyt.......................................................................................................................................................................... 45 TIF7-5A — Village at Bassett Creek......................................................................................................................................... 52 TIF7-6 — Berkshire................................................................................................................................................................... 59 TIF7-7 — Stone Creek Village.................................................................................................................................................. 67 TIF7-8 — Quest Development.................................................................................................................................................. 75 TIF7-9 — Agora........................................................................................................................................................................ 82 Appendixof Terms.......................................................................................................................... 86 Mapof the TIF Districts................................................................................................................... 87 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 2 Page 3 Management Review & Analysis Overview Revenue from tax increment financing (TIF) districts is a financial asset of the City of Plymouth. This revenue must be used primarily to address blight, contamination, housing or redevelopment needs for the parcels in the TIF district within a specified period of time. The revenue generated is first used to pay debt service on outstanding bonds, interfund loans and developer pay-as-you-go notes (PAYGO). A portion (but not all) of the remaining revenues can be used to participate in other eligible development projects. Over the years, the City and HRA have utilized unobligated revenues from TIF districts to assist the following projects: • Westview Estates - $600,000 30 -year deferred loan • HRA Vicksburg Crossing senior housing facility — 10% pooling for bonds, if needed The management of TIF districts is an ongoing activity. TIF requires administrative oversight for reporting to the State, tracking parcel information, maintaining compliance with use restrictions in the TIF law and the development agreements, and matching TIF revenue to debt service. The factors that produce tax increment revenues such as tax rates, assessor's values, and class rates change every year. The State property tax laws have changed significantly since 1997, including the major reforms enacted in 2001. Reductions in revenue due to the reform and due to capped tax rates, the City does not have adequate cash flow to pay for the outstanding 2009 general obligation (G.O.) tax increment financing bonds in District 7-5A and is utilizing deficit pooling from TIF District 7-4 to offset the shortfalls. Some districts, for which project costs were paid through a "pay-as-you-go" may not meet scheduled principal and interest payments, depending upon future values and rates. The City has no obligation to make up shortfalls for the "pay-as-you-go" notes. The revenues from the districts within the City are largely site specific, meaning that the revenues are restricted by law and/or by contract with the developers. The TIF must be used primarily to address housing or redevelopment needs for the parcels in the TIF district within a specified period of time. The City has given itself flexibility to utilize TIF on a limited basis for affordable housing or redevelopment outside of the TIF boundaries, but it has used that authority sporadically. The Office of the State Auditor (OSA) has a TIF division which is mandated by state law to collect annual reporting forms and, if necessary, audit the use of TIF. Such audits could result in a letter to the county attorney or attorney general for enforcement actions. To date the City and HRA have not been audited. Due to legislative and market changes and oversight of TIF districts by the OSA, the management of the TIF districts within the City is an ongoing activity. Ehlers worked with City staff to create the following plan for the management of its TIF districts and their related obligations. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 3 Page 4 TIF District Summary Currently there are eight (8) active TIF districts in the City, and one district (7-9 a redevelopment district) adopted by City Council in February 2017. The City administers six (6) of the Districts and the City's Housing and Redevelopment Authority (HRA) administers the remaining three (3). Overall the makeup of the types of districts are as follows: Redevelopment HRA 2 Redevelopment City 4 Housinng HRA 1 Housing City 2 TOTAL N/A 9 These Districts are outlined in the chart that follows on the next page. A more detailed explanation of each district can be found starting on page 21. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 4 Page 5 ,i,tMr-­rflFT-'r- TIF 1-2 TIF 1-3 TIF 7-5A TIF 7-7 TIF 7-8 TIF Authorit Plymouth Commons HRA Crossroads HRA Cit Cit Ci Ci Village Development City Cit District Type Redevelopment Qualified Housing Redevelopment Housing Redevelopment Housing Redevelopment Redevelopment -Redevelopment 139 sr. apts, two hotels (Aloft - 95 90 -unit sr. assisted units and Town Place 96 -unit HRA senior living facility, Public 71 for -sale town Renovation of existing 130 -unit Stone Suites - 100 units, Project housing & 0 50 -unit rental town McDonalds & improvements for homes & 240,000 sq/ft Creek Village 157 -Unit City Flats with event space), etall Sq/ftrRetail homes approximately 35,000 Plymouth rtmunit senior apartments office/warehouse/produ Apartments Apartments 19,680 sq/ft of office, to 48,000 sq/ft Technology Park ction facility 61,426 sq/ft of retail & commercial/office a 3 -story, 339 -stall municipal parking ramp Adopted 11/23/2004 6/13/2006 10/24/2006 8/1/1995 9/2/1998 10/10/2000 5/14/2002 4/12/2011 1/24/2017 Legal max term 12/31/2031 12/31/2033 12/31/2033 12/31/2022 12/31/2026 12/31/2028 12/31/2028 12/31/2040 12/31/2044 Anticipated term 12/31/2031 12/31/2033 12/31/2025 12/31/2022 12/31/2026 12/31/2018 12/31/2028 12/31/2040 12/31/2044 Obligation end date 2/1/2022 2/1/2027 8/1/2025 Completed 2/1/2023 7/31/2018 2/1/2018 8/1/2040 TBD First Increment 2006 2008 2008 1997 2001 2003 2003 2015 Anticipated 2019 $250,000 PAYGO $236,000 30 -year $835,000 Interfund Note to Vicksburg $600,000 30 -year deferred loan and Loan from the CommonsLimited $1,899,645 PAYGO deferred loan and $2,490,000 GO GO $900,000 PAYGO Note $1,159,000 $4,500,000 PAYGO Current Obligations Construction Partnersip and Note to Minnwest up to $6,900,000 TIF Refunding to Continential Property PAYGO Note to $2,500,000 PAYGO Note to Rockhill Improvement Fund $250,000 Interfund Bank Metro Deficit Pooling to Bonds, Series 2009 Group & deficit pooling MMA Mortgage Note to 169/55 LLC Management LLC (only $900,000 Loan to Vicksburg TIF 7-5A to TIF 7-5A Investment authorized) Commons Limited Corporation Ptnsh Paygo $87,602 Amount outstanding $634,057 Interfund loan $ 1,267,235 N/A $1,485,000 $161,610 $832,405 $2,500,000 N/A at 02/02/2017 $99,809 10% statutory 27% withheld for Admin percent amount but due to application of the allowed if PAYGO 10% 5% 10% 10% deficit pooling will payment on the 5% 10% 10% be 0% until bonds PAYGO. Statutory limit are paid off in 2023 of 10% 10% additionial Unlimited pooling Unlimited pooling Deficit pooling to Unlimited pooling pooling for HRA for affordable Up to 25% for legal for affordable District 7-5A, 10 for affordable Vicksburg Crossing housing as long as Up to 25% for legal pooling for other housing after additionial pooling for housing as long as Up to 25% for legal Up to 25% for legal Other Uses Senior Housing existing project pooling for other redevelopment Bonds are repaid HRA Vicksburg existing project pooling for other pooling for other Bonds or other maintains redevelopment projects and Deficit as long as existing Crossing Senior maintains redevelopment redevelopment types of affordable affordability and projects pooling to District 7- project maintains Housing Bonds or other affordability and projects projects housing reports to City 5A affordability and types of affordable reports to City reports to Cit housing 2017 Estimated TIF $240,224 $28,964 $282,678 $306,993 $184,169 $217,747 $193,261 $111,868 $0 Rev Revenue Fiscal Disparities B ("inside") A ('outside") B ("inside") B ("inside") A ('outside") A ('outside") A ('outside") B ("inside") B ("inside") Election Estimated Increased property tax as a result of fiscal N/A $0 N/A N/A $3,011 $30,029 $0 N/A N/A disparities election for Pay 2017 Projected ending $582,373 $17,299 $168,373 $732,503 $194 $673,058 $74,081 $54,073 $0 2017 fund balance County Number 2074 1 2075 1 2076 1 2069 1 2071 1 2072 1 2073 1 2077 1 2078 Management Review & Analysis - Tax Increment Financing Districts August 2017 Plymouth, Minnesota Page 5 Page 6 The fiscal disparities election noted in the chart on the previous page refers to the commercial and industrial (C/I) tax capacity sharing program that is in effect for the seven -county metropolitan area. It was designed so that local governments could share in the collective resources of commercial and industrial properties of the region, without creating pressure to compete between local governments for those resources. Under the program, a percent of C/I tax capacity is contributed to the pool, or removed, from a local government's tax base. In turn, a certain percent of C/I tax capacity is returned, or distributed back to a local government for computation of the ending local tax rate. For the City of Plymouth, more C/I tax capacity is contributed to the pool than is distributed back to the City. For tax increment purposes, fiscal disparities election can be inside (B) the district or outside (A) the district. If tax capacity is calculated outside the district, or the A election, TIF revenues for a district do not include a deduction for this contribution/distribution mechanism, which results in more tax increment being available for the project. If tax capacity is calculated inside the district, or the B election, TIF revenues do include a deduction for the final tax base calculation, which means less tax increment being available for the project. The chart on the previous page shows the property tax shift under A election, which means that other properties in the City are contributing (tax impact) toward the fiscal disparities pool rather than C/I properties in the TIF district. Fiscal disparities is calculated on C/I property only so there may be instances where the district includes only residential property and thus there is no property tax shift under A election. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 6 Page 7 Obligations of the TIF Districts The revenues from these districts are largely site specific, meaning that the revenues are restricted by law and by contract with developers. The revenues must be used primarily to address blight, contamination, housing or redevelopment needs for the parcels in the TIF district within Summary of Outstanding Obligations (after the 2/1/2017 payment) ay As You Go Obligation = Bonds and Interfund Loans After 2/1/2017 1-1 Shops at Plymouth Creek Interfund Loan (December 9, 2014) , • 835,000 1 $ 634,057 2/1/2022 1-2 Vicksburg Commons Vicksburg Commons $ 250,000 $ 87,602 1-3 Plymouth Crossroads Minnwest Bank Metro $ 1,899,645 $ 1,353,825 7-6 Berkshire Continental Property Group $ 900,000 $ 89,001 7-7 Stone Creek Village MMA Mortgage Corporation $ 1,159,000 $ 832,405 7-8 Quest Development 169/55 LLC (Quest) $ 2,500,000 $ - 7-9 Agora Rock Hill Management LLC $ 4,500,000 Not Yet Issued TOTAL $ 11,208,645 $ 2,362,833 = Bonds and Interfund Loans After 2/1/2017 1-1 Shops at Plymouth Creek Interfund Loan (December 9, 2014) $ 835,000 1 $ 634,057 2/1/2022 1-2 Vicksburg Commons Interfund Loan $ 250,000 $ 99,809 2/1/2027 TIF 7-5A Village at Bassett Creek 2009 GO TIF Refunding Bonds $ 2,490,000 $ 1,485,000 2/1/2023 N/A TOTAL $ 3.575.000 $ 2.218.865 N/A Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 7 Page 8 Deficit Pooling Program Introduction: Tax Increment District No. 7-5A was established as a "housing district" by the City in 1998, for the purpose of financing public improvements related to the construction of 71 owner -occupied town homes (Village at Bassett Creek) and a 46 -unit, 202 senior rental apartments by Common Bond (Bassett Creek Commons). Prior to August 1, 2001 the City issued bonds which are considered legally binding obligations that required the expenditure of future District 7-5A tax increment. In 2001, the Minnesota legislature enacted sweeping ad valorem property tax changes, effective for taxes payable in 2002. Through a combination of reduced class rates and a shift in education levies from local government to the state, tax increment generated by districts such as District 7-5A was reduced significantly. Recognizing the impact of these property tax changes on existing tax increment districts, the legislature enacted Minnesota Statutes, § 469.1763, Subdivision 6, permitting authorities to utilize unencumbered tax increment from one district to pay certain deficits in another district, to the extent the deficits were caused by the legislative action (the "Deficit Pooling Provisions" or the "Act"). Because of the scope of activities undertaken in District 7-5A were City obligations and because these activities were completed only four (4) years prior to the legislative property tax changes occurred, the City wishes to focus this deficit pooling authority on District 7-5A. Therefore, the aim of this Program is to utilize legally available revenues from other active City tax increment districts with unencumbered revenues to help offset the loss of future increment in District 7-5A. The purpose of this Program, then, is to set forth the legal requirements of the Deficit Pooling Provisions, establish their application to District 7-5A and describe the methods by which the City shall apply these provisions going forward. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 8 Page 9 The Deficit Pooling Provisions: To access the right to deficit pool from various tax increment districts to District 7-5A, the following rules must be followed: The pooled revenues must be utilized solely for "pre-existing obligations," defined as: • Bonds secured by District 7-5A tax increment and issued before August 1, 2001; • Bonds secured by District 7-5A tax increment and issued after August 1, 2001, but issued pursuant to a binding contract entered into before July 1, 2001 that requires issuance of the bonds; • Bonds secured by District 7-5A tax increment and issued to refund bonds described in (1) and (2); • Bonds secured by District 7-5A tax increment and issued to reimburse the City for out-of-pocket expenditures made pursuant to a binding contract entered into before August 1, 2001; and • Binding contracts entered into before August 1, 2001 and requiring payments secured by tax increment. There must be a "deficit" in the Pre -Existing Obligations. In other words, the Pre -Existing Obligation must have a debt service schedule so that it can be determined whether, at any given time, there is, in fact, a deficit. The Deficit Pooling Provisions initially defined a "deficit" as the lesser of (1)(a) the amount due during the calendar year to pay Preexisting Obligations minus (b) total increment collected from the District during the year plus (c) total increment that can legally transferred to the District during the year under Minnesota Statutes, 469.1763, Subdivision 2 (the "Shortfall Amount") OR (2) the reduction in District increment caused by the 2001 Legislation and similar previous legislative enactments (the Legislative Impact Amount"). The legislature subsequently amended the Deficit Pooling Provisions to authorize annual deficit pooling based solely upon calculation of the Shortfall Amount (the "Single Calculation Option") so long as the City irrevocably committed to utilization of all future District 7-5A increment solely for the purpose of paying principal and interest on the Preexisting Obligations In 2013, the City, elected the Single Calculation Option for the purpose of calculating the deficit in District 7-5A. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 9 Page 10 Pre -Existing Obligations Following is a summary of the obligations pertaining to District 7-5A that are considered Pre -Existing Obligations: On October 15, 1998, the City issued $2,900,000 General Obligation Tax Increment Bonds for District 7-5A to finance public improvements for the District. These bonds were refinanced with the $2,490,000 GO TIF Refunding Bonds, Series 2009. These bonds were issued on November 24, 2009 and are callable on February 1, 2018 and have an end payment date of February 1, 2023. The Existence of a Deficit: The formula established by Statute for determining the existence of a "deficit" in any given year can be illustrated as follows: Deficit = X — (Y + Z) X = Annual amount due on Pre -Existing Obligations Y = Annual District revenue derived from tax increment Z = Project Area Transfer Amount X — The Annual Amount Due on Pre -Existing Obligations: The Bonds. All of the $2,900,000 in 1998 Bond proceeds were used to pay for public improvements for the District and, therefore, constitutes a Pre -Existing Obligation. This bond was refunded by the $2,490,000 General Obligation Tax Increment Bonds, Series 2009. Y— Annual District Revenue Derived from Tax Increment: Revenue derived from tax increment includes actual tax increment collections, proceeds from the sale or lease of property purchased with tax increment, principal and interest repayments on loans made with tax increment and interest and investment earnings on any of the above. Z -Project Area Transfer Amount: TIF Statutes permits a certain amount of increment generated by a district to be expended outside of the generating district (the "Project Area Transfer Amount"), so long as (1) it is expended within an underlying project area and (2) its use is one that would have constituted a qualified use Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 10 Page 11 within the district.' For all "redevelopment districts" for which the request for certification was made before July 1, 1995, the permissible Project Area Transfer Amount is 25%. For "housing districts" there is unlimited pooling for other affordable housing projects and they do not need to be within the Project Area. Deficit Solution. The above deficit formula solution is detailed by actual and future estimated needs in the table on the following page and is intended to be updated annually. Priority Between Pre -Existing Obligations and Priority Between Giving Districts: In the case of multiple Pre -Existing Obligations, the TIF Statute does not dictate the order of priority of payment from deficit -pooled revenues, leaving this to the discretion of the City. Pursuant to the City's Deficit Pooling Program, it was determined the order of transfer from these districts to District 7-5A shall be from 7-4, then 7-6. Following is a chart depicting the annual TIF from District 7-5A, annual Project Area transfers, expenses, annual deficit, and TIF needed from each "giving" district in order of priority: $41,185 $0 11M $60,893 Ir -1 $60,893 $64,306 Income TIF 7-5A Investment $64,306 Total Expenses bt Bond DeYear Annual $83,993 Increment Income $83,993 5100,331 Schedule 5100,331 - Actual $189,515 $0 $189,515 $230,700 $41,185 2017 - Estimate $184,169 $0 $184,169 $245,063 $60,893 2018 - Projection $184,169 $0 $184,169 $248,475 $64,306 2019 - Projection $184,169 $0 $184,169 $261,125 $76,956 2020 - Projection $184,169 $0 $184,169 $268,163 $83,993 2021 - Projection 5184,169 50 5184,169 5284,500 5100,331 2022 - Projection $184,169 $0 5184,169 $290,138 $105,968 2023 - Projection $184,169 $0 5184,169 $300,163 $115,993 2024 - Projection $184,169 $0 $184,169 $0 $0 2025 - Projection $184,169 $0 $184,169 $0 $0 2026 - Projection $184,169 $0 $184,169 $0 $0 TOTAL $2,031,206 $0 $2,031,206 $2,128,325 $649,627 $41,185 $0 $41,185 $60,893 $0 $60,893 $64,306 $0 $64,306 $76,956 $0 $76,956 $83,993 $0 $83,993 5100,331 50 5100,331 $105,968 $0 $105,968 $115,993 $0 $115,993 N/A $0 $0 N/A $0 $0 N/A $0 $0 $649,627 $ $649,627 ' This limitation does not apply to deficit pooling, where the State Auditor has concurred that one can deficit pool between districts without regard to differing qualified cost limitations. e.g. economic development to redevelopment. However, it does limit the Project Area Transfers that must be achieved before becoming eligible to deficit pool. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 11 Page 12 As noted, starting in 2023 when the 2009 Bonds are repaid, the amount of increment needed from the "giving" districts, decreases to $0. Overall, through deficit pooling, the City will be able to repay the bonds. It is intended that this schedule be updated each year to reflect changes in remaining bond payments, actual increment collections and changes in Project Area Transfer Amounts, if any. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 12 Page 13 TIF for Affordable Housing The rules for utilizing TIF for affordable housing are complex. Plymouth has used TIF from some of its districts to assist affordable housing developments. The statutory authorities for each case are outlined below: 1. Special Pooling Provision for Tax -Credit Eligible Rental Housing. Minnesota Statutes, Section 469.1763, subdivision 2(d), allows the City to pool up to an additional 10% above the standard allowable limit for rental housing that meets low-income housing tax credit requirements, but does not have 100% of its credit -eligible costs funded by tax credits. Eligible uses include acquisition and site preparation, construction, rehabilitation and public improvements directly relate to the housing. This provision does not apply if all of the eligible expenses are funded through tax credits. This pooling, pursuant to Minnesota Statutes, Section 469.176 subdivision 4k, can be done without regard to project area/development district limitations. The 10% calculation begins with the first TIF received after the TIF Plan was modified to allow for this provision. The HRA has used this provision to assist Plymouth Towne Square senior housing with $80,000 in TIF from District 1-1 in 2015 and approximately $73,000 in 2016. In addition, the HRA could utilize TIF from this district and TIF 7-6 (with City authority) for not only Plymouth Towne Square but for the Vicksburg Crossing facility as well. The HRA will continue to evaluate and utilize funds from these Districts as needed (up to the 35% allotted in each TIF plan, net of administrative costs charged to the District). 2. Pooling from Housing Districts. A housing district is established for either rental or owner -occupied housing. The rental housing developments are income limited to either 20% of the units at 50% or less of median income or 40% of the units at 60% or less of median income, adjusted for family size. The owner -occupied housing is limited to 100% of median income for families of two or less or 115% for families of three or more. The rental housing restrictions remain for the life of the TIF district while the owner -occupied restrictions apply only to the first occupants. If excess funds from a housing district are realized, then 100% of the TIF can be pooled for other housing that meets the same income limitations, as long as the housing within the District either met the test with the first occupant (owner -occupied projects only) or the development agrees to continue to keep the units affordable and continue to provide annual reports to the City (rental projects only). This pooling is not restricted to other parcels in the project area/development district and can be spent anywhere within the City. The five (5) TIF Districts from which the City and HRA could fund affordable housing are TIF Districts 1-1, 1-2, 7-5A, 7-6 and 7-7. TIF Districts 1-1 and 7-6 can be used for affordable rental housing as noted in #1 above and TIF Districts 1-2, 7-5A and 7-7 can be used for affordable housing as noted in #2 above. The table on the following page summarizes the amounts that could be available between the five (5) districts: Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 13 Page 14 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota Pooling for Affordable Rental TIF 1-1 & 7-6 (Redevelopment) $ 133,878 $ 45,797 $ 43,349 $ 41,172 $ 41,172 $ 41,172 $ 41,172 $ 39,015 $ 39,015 $ 39,015 $ 39,015 $ 39,015 $ 39,015 $ 19,417 $ 19,417 $ 19,417 1 $ 680,052 1 Pooling for Affordable Housing (#2) TIF 1-2, 7-5A & 7-7 (Housing) $ 82,705 $ 7,463 $ 188,760 $ 188,760 $ 188,760 $ 188,760 $ 188,760 $ 188,760 $ 379,808 $ 386,687 $ 386,687 $ 216,836 $ 219,138 $ 27,618 $ 27,618 $ 27,618 $ 27,618 $ 27,618 $ 2,949,976 August 2017 Page 14 Page 15 Pooling for Affordable Housing Year 1-1 1-2 7-5A (Housing) 7-6 7-7 Total (Redevelopment) (Housing) (Redevelopment) (Housing) To Date $ 6,700 $ 14,749 $ $ 127,178 $ 67,956 $ 216,583 2017 $ 24,022 $ 2,402 $ $ 21,775 $ 5,061 $ 53,260 2018 $ 21,575 $ 102 $ $ 21,775 $ 188,659 $ 232,110 2019 $ 21,575 $ 102 $ $ 19,597 $ 188,659 $ 229,932 2020 $ 21,575 $ 102 $ $ 19,597 $ 188,659 $ 229,932 2021 $ 21,575 $ 102 $ $ 19,597 $ 188,659 $ 229,932 2022 $ 21,575 $ 102 $ $ 19,597 $ 188,659 $ 229,932 2023 $ 19,417 $ 102 $ - $ 19,597 $ 188,659 $ 227,775 2024 $ 19,417 $ 6,981 $ 181,307 $ 19,597 $ 191,520 $ 418,823 2025 $ 19,417 $ 13,860 $ 181,307 $ 19,597 $ 191,520 $ 425,702 2026 $ 19,417 $ 13,860 $ 181,307 $ 19,597 $ 191,520 $ 425,702 2027 $ 19,417 $ 25,315 $ - $ 19,597 $ 191,520 $ 255,850 2028 $ 19,417 $ 27,618 $ $ 19,597 $ 191,520 $ 258,153 2029 $ 19,417 $ 27,618 $ $ - $ - $ 47,035 2030 $ 19,417 $ 27,618 $ $ $ $ 47,035 2031 $ 19,417 $ 27,618 $ $ $ $ 47,035 2032 $ - $ 27,618 $ - $ $ $ 27,618 2033 $ - $ 27,618 $ - $ - $ $ 27,618 Total $ 313,352 $ 243,484 $ 543,922 $ 366,699 $ 2,162,570 $ 3,630,028 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota Pooling for Affordable Rental TIF 1-1 & 7-6 (Redevelopment) $ 133,878 $ 45,797 $ 43,349 $ 41,172 $ 41,172 $ 41,172 $ 41,172 $ 39,015 $ 39,015 $ 39,015 $ 39,015 $ 39,015 $ 39,015 $ 19,417 $ 19,417 $ 19,417 1 $ 680,052 1 Pooling for Affordable Housing (#2) TIF 1-2, 7-5A & 7-7 (Housing) $ 82,705 $ 7,463 $ 188,760 $ 188,760 $ 188,760 $ 188,760 $ 188,760 $ 188,760 $ 379,808 $ 386,687 $ 386,687 $ 216,836 $ 219,138 $ 27,618 $ 27,618 $ 27,618 $ 27,618 $ 27,618 $ 2,949,976 August 2017 Page 14 Page 15 TIF as a Development Tool Continuous redevelopment is vital to maintaining the City's long-term economic health and vitality. Plymouth has utilized TIF for key redevelopment and housing projects. Utilizing this tool to accomplish the various goals of the City has strengthened the overall diversity of housing options, land uses and tax base, while increasing employment opportunities. One immediate benchmark of the benefit in utilizing TIF is the overall increase in market value from when the district was created to when it is fully developed. As illustrated in the following table, the City's overall market value has increased in the various TIF districts by over 650% as noted in the table below: TIF 1-1 Shops at Plymouth Creek 6,972,800 24,343,000 249.11% TIF 1-2 Vicksburg Commons 1,487,700 7,140,000 379.94% TIF 1-3 Plymouth Crossroads 2,544,100 23,332,000 817.10% TIF 7-4 Hoyt 440,700 21,836,000 4854.84% TIF 7-5 Village at Basset Creek 749,694 17,629,140 2251.51% TIF 7-6 Berkshire 4,200,000 14,460,000 244.29% TIF 7-7 Stone Creek Village 296,000 17,128,000 5686.49% TIF 7-8 Quest Development 1,244,900 10,336,000 730.27% **TIF 7-9 Agora 8,549,000 8,549,000 0.00% ** This District is excluded from the calculation since it is just beinig certified at time of this report Is the City using the tool too much or not enough? One good way to measure use of TIF is to compare with similar cities in the use of TIF. A common measure of the use of TIF is the percentage of the gross tax base captured in TIF districts. On the following page is a chart which demonstrates the City's current and projected tax base which is captured in TIF districts and similar cities' situation. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 15 Page 16 City of Plymouth Projected Captured TIF Tax Capacity and Comparison with Other Cities Total Tax Capacity (Gross) 106,455,241 113,659,712 119,316,499 129,056,727 130,347,294 131,650,767 132,967,275 134,296,948 135,639,917 136,996,316 Percentage of Tax Base in TIF 1.0% 1.1% 1.1% 1.2% 1.2% 1.2% 1.4% 1.4% 1.4% 1.2% * Assumes 1% annual increase in tax base and TIF ** After application of fiscal disparties B election Final Payable 2017 Captured TIF as a Percent Tax Base of City Tax Rate City Bond Rating Minneapolis 8.5% 61.13% Aa1/AAA Bloomington 7.8% 40.93% Current Districts TIF 1-1 Shops at Plymouth Creek 209,712 209,726 217,317 222,424 224,648 226,895 229,164 231,455 233,770 236,108 TIF 1-2 Vicksburg Commons 33,873 26,193 28,376 31,039 31,349 31,663 31,980 32,299 32,622 32,949 TIF 1-3 Plymouth Crossroads 116,975 293,721 295,229 313,366 316,500 319,665 322,861 326,090 329,351 332,644 TIF 7-4 Hoyt 249,392 246,760 255,640 274,493 277,238 280,010 282,810 285,639 288,495 0 TIF 7-5 Village at Basset Creek 119,598 127,215 167,952 172,951 174,681 176,427 178,192 179,974 181,773 183,591 TIF 7-6 Berkshire 163,362 190,744 193,290 205,950 208,010 0 0 0 0 0 TIF 7-7 Stone Creek Village 134,190 152,922 168,683 180,343 182,146 183,968 185,808 187,666 189,542 191,438 TIF 7-8 Quest Development 0 1,455 1,508 105,052 106,103 107,164 108,235 109,318 110,411 111,515 TIF 7-9 Agora 0 229,319 569,518 575,213 580,965 586,775 Total Captured** 1 1,027,102 1,248,736 1,327,995 1,505,6181 1,520,674 1,555,110 1,908,567 1,927,653 1,946,929 1,675,019 Total Tax Capacity (Gross) 106,455,241 113,659,712 119,316,499 129,056,727 130,347,294 131,650,767 132,967,275 134,296,948 135,639,917 136,996,316 Percentage of Tax Base in TIF 1.0% 1.1% 1.1% 1.2% 1.2% 1.2% 1.4% 1.4% 1.4% 1.2% * Assumes 1% annual increase in tax base and TIF ** After application of fiscal disparties B election Final Payable 2017 Captured TIF as a Percent Tax Base of City Tax Rate City Bond Rating Minneapolis 8.5% 61.13% Aa1/AAA Bloomington 7.8% 40.93% Aaa/AAA Edina 2.6% 28.19% Aaa/AAA Eden Prairie 2.6% 32.48% Aaa Minnetonka 2.2% 36.38% Aaa Brooklyn Park 2.1% 54.37% AA+ Plymouth 1.2% 26.48% Aaa/AAA Maple Grove 0.4% 38.25% AAA Golden Valley 0.1% 56.11% Aa1 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 16 Page 17 As noted in the table on the previous page, the City is below average versus similar cities in the use of TIF. Also shown are comparable cities' tax rates and bond ratings. Although this is a small sample of municipalities, the amount of TIF used by a city does not seem to correlate directly with a city's tax rate or bond rating. In conversations with rating agencies, we do know that market value growth is an important factor in maintaining Plymouth's Aaa/AAA bond rating. Redevelopment plays an important factor in market value growth. Following is a table which demonstrates the historical market value growth of the City. 2004 7,154,421,600 9.82% 2005 7,948,847,200 11.10% 2006 8,634,475,000 8.63% 2007 9,418,688,200 9.08% 2008 10,041,598,400 6.61% 2009 10,031,989,800 -0.10% 2010 9,582,498,400 -4.48% 2011 9,012,393,300 -5.95% 2012 8,579,997,810 -4.80% 2013 8,473,380,300 -1.24% 2014 8,650,691,024 2.09% 2015 9,321,237,463 7.75% 2016 9,788,873,773 5.02% 2017 10,546,513,938 7.74% Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 17 Page 18 Administrative Expenses Minnesota TIF law defines certain costs to administer and maintain the district as allowable expenses that can be paid for from tax increment revenues. The maximum allowed by State law is 10% of expenses. In some cases, the City has reduced the maximum to 5% or less for certain development agreements. The allowable costs generally include city staff time, legal expenses, financial advisory expenses and publication and reporting expenses. This allows a city to defray documented staff time, such as finance staff, community development staff, and administration such as the City Manager. Time spent can be paid for from TIF revenues rather than general property tax or other revenues. Assumptions Before discussing the findings of the current TIF analysis, it is important to understand the assumptions used in making these projections. 1. Fund balances shown for TIF funds are based on actual amounts for December 31, 2016. 2. Pay 2016 tax increment revenues are based on City reported actual revenue collections. Pay 2017 revenues are based upon taxable values for pay 2017 from Hennepin County reports, using actual 2017 tax rates. Projected revenues do not account for additional development (except the developments under a development agreement) or inflation of existing values. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 18 Page 19 Recommendations The updated financial analysis of the HRA's and City's TIF Districts offers the following recommendations: 1. Le, -al Pooling in Districts. Four (4) redevelopment districts have cash balances within them due to funds not being utilized for administration or other projects within or outside the district. Following is a chart outlining the districts and their cash balances available for pooling as of May 1, 2017. for Year 1.1 1.3 7.4 7.6 Total (Redevelopment) (Redevelopment) (Redevelopment) (Redevelopment) To Date $ 361,668 $ 141,030 $ 471,469 $ 483,954 $ 1,458,121 2017 $ 189,983 $ 27,363 $ 261,034 $ 40,152 $ 518,532 2018 $ 81,327 $ 21,810 $ 247,091 $ 96,957 $ 447,184 2019 $ 51,780 $ 22,028 $ 236,912 $ - $ 310,719 2020 $ 51,780 $ 22,248 $ 108,482 $ - $ 182,510 2021 $ 51,780 $ 22,471 $ 49,691 $ $ 123,941 2022 $ 51,780 $ 22,696 $ 48,281 $ $ 122,756 2023 $ - $ 22,923 $ - $ - $ 22,923 2024 $ $ 23,152 $ $ $ 23,152 2025 $ $ 140,209 $ $ - $ 140,209 Total $ 840,095 $ 465,930 $ 1,422,960 $ 621,062 $ 3,350,047 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 19 Page 20 2. Funding for Affordable Housing Proiects. As noted on pages 13 and 14 of this report, there are five (5) TIF Districts from which the City and HRA could fund affordable housing (TIF Districts 1-1, 1-2, 7-5A, 7-6 and 7-7). TIF Districts 1-1 and 7-6 can be used for affordable rental housing that meets the requirements for tax credit housing (including use on Plymouth Towne Square and Vicksburg Crossing for capital improvements) and TIF Districts 1-2, 7-5A and 7-7 can be used for affordable housing that meets the income guidelines for a housing TIF district. We recommend annually completing the calculations for available TIF and for the City and HRA to determine a plan for use of the funds. If no use is determined, we recommend decertifying the Districts when their obligations are paid off. In addition, we recommend monitoring the income restrictions on Districts 1-2, 7-5A and 7-7 after the obligations are paid off to ensure they maintain eligibility through the life of the district so the City and HRA can utilize the funds for affordable housing. Six Year Rule. MN Statute 469.1763 subdivision 4 requires that beginning in year 6 of the district, the City must utilize 75% of the tax increment generated to pay obligations. We have accounted for this in Districts 1-1, 1-3, 7-4, 7-6 and 7-7. We recommend annually reviewing this requirement to assure 75% (or 65% for districts 1-1 and 7-6) is utilized to pay any outstanding obligations. In addition, districts 1-1 and 7-6 will require increment to be returned in future years when the obligations are paid off (City and HRA can retain the 10% for affordable rental housing going forward). 4. Return of Increment on an Annual Basis. TIF District 1-1 and 7-6 have elected the additional 10% for affordable housing projects. However, their in -district obligations end prior to the end date of the District. The HRA and City will need to annually monitor, calculate and return any increment in excess of the 35% it is retaining for affordable housing purposes (inclusive of the 25% admin) in these Districts. Dericit Pooling. Annually the City Finance Department should review to determine that all revenue derived from District 7-5A tax increment has been and is applied to the Bonds and make transfers from TIF District 7-4 as needed to cover deficits in the year the deficit occurs. 6. Modification of TIF Plans for Additional 10% TIF for Affordable Housing. The City and HRA could modify the TIF plans for Districts 1- 3, and 7-4 to allow an additional 10% pooling for affordable housing projects. If the City and HRA are interested in this, we recommend completing an analysis to determine the amount of TIF that would be available under this election. 7. Stone Creek Village Budget Modification. The Developer is required to maintain affordability until 2038 for the project due to their financing. Since the obligation is paid off in 2018 (second half 2017 TIF), the City will be able to continue to collect eleven (11) more years of TIF for use on affordable housing projects (2018-2028). We recommend the City modify the TIF Plan to increase the budget to avoid generating excess increment and maximize the future TIF available for affordable housing projects. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 20 Page 21 Tax Increment Financing Districts TIF 1-1 — Shops at Plymouth Creek Description: The Shops at Plymouth Creek (County number 2074) is a Redevelopment District established in 2004 and is located within Redevelopment Project Area No. 1. Originally, the district encompassed one 28 - acre parcel of land and was established to facilitate the redevelopment of the parcel into a combination of retail (Shops at Plymouth Creek) and senior housing. On February 2, 2005, the HRA entered into a Pledge Agreement with the City to pledge TIF from the District for repayment of the $1,370,000 General Obligation Bonds issued by the City for public improvements (since refinanced with interfund loan noted in the Obligations section). In 2010 the HRA modified the District to extend the term of the District from December 31, 2022 to December 31, 2031 (legal term), to modify the budget to allow the additional 10% pooling for affordable housing purposes (specifically for the HRA Vicksburg Crossing senior housing facility) and removed parcel 20-118-22-14-0010 (Vicksburg Crossing). In 2015 and 2016, the HRA provided $80,000 and $73,412 respectfully to Plymouth Towne Square senior housing project. The HRA will continue to evaluate and utilize funds from this District as needed to offset any shortfalls for capital costs of the Plymouth Towne Square senior housing project and for the Vicksburg Crossing (no approval is needed from the City). ..........................11 /23/2004 3 Date...................12/21/2004 ertified Date ....................04/04/2005 irst Increment .......................06/2006 bligation End Date..............02/01/2022 ec ertifi e s ........................12/31/2031 [odification .....................01 /26/2010 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 21 Page 22 TIF 1-1 — Shops at Plymouth Creek Continued Administrative Authority: The Plymouth Housing and Redevelopment Authority is responsible for this District. Parcels: Former PID # Former Use New PID # New Use 20-118-22-14-0005 Dane Spicer Industrial 20-118-22-14-0006 20-118-22-14-0002 Manufacturer 20-118-22-14-0007 Shops at Plymouth Creek 20-118-22-14-0008 20-118-22-14-0009 Fiscal Disparities Election: The City elected to calculate fiscal disparities from inside (B election) the district. Original and Current Tax Rate: Original (Pay 2005): 97.3490% Current (Pay 2017): 108.393% Allowable Uses: TIF 1-1— Redevelopment Funds. MN Statute 469.176 sub 4j specifies the activities on which tax increment from a redevelopment district may be spent. In general, tax increment must be spent on correcting those conditions which caused the area to be designated a redevelopment district. Allowable uses include property acquisition, demolition, soils correction, environmental remediation, rehabilitation, installation of public utilities, road, sidewalks, public parking facilities, and allowable administrative expenses. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 22 Page 23 TIF 1-1 — Shops at Plymouth Creek Continued TIF 1-1 — Affordable Housing. Minnesota Statutes, Section 469.1763, subdivision 2(d), allows the City to pool up to an additional 10% above the standard allowable limit for rental housing that meets low-income housing tax credit requirements, but does not have 100% of its credit - eligible costs funded by tax credits. Eligible uses include acquisition and site preparation, construction, rehabilitation and public improvements directly relate to the housing. This provision does not apply if all of the eligible expenses are funded through tax credits. This pooling, pursuant to Minnesota Statutes, Section 469.176 subdivision 4k, can be done without regard to project area/development district limitations. The 10% calculation begins in with the first TIF received after the TIF Plan was modified to allow for this provision (January 26, 2010). Obligations: There is one interfund loan as follows: • $835,000 Interfund Loan at 4% from the Construction Improvement Fund which was utilized to pay off the 2005A GO TIF bonds. The HRA approved an interfund loan for up to $900,000 on December 9, 2014 and will be repaid from 65% of the TIF generated from the District. After the 2/1/2017 payment, the current balance is $634,056.90 and the projected final payment is on February 1, 2022. Other Development Agreement Compliance: Minimum Assessment Agreement. The minimum market value for each portion of the development shall be in effect until termination of the District or when the HRA collects $845,765 in TIF. The minimum market values shall be as follows: Lot 1, Block 1, Shops at Plymouth Creek as of January 2, 2006 shall be less than $2,875,000 and as of January 2, 2007 shall not be less than $11,000,000. The Assessment Agreement shall be in place until the TIF District terminates. Lot 2, Block 1, Shops at Plymouth Creek as of January 2, 2006 shall be less than $2,875,000 and as of January 2, 2007 shall not be less than $6,200,000. The Assessment Agreement shall be in place until the TIF District terminates. Lot 3, Block 1, Shops at Plymouth Creek as of January 2, 2006 shall be less than $1,035,000 and as of January 2, 2007 shall not be less than $2,000,000. The Assessment Agreement shall be in place until the TIF District terminates. Lot 4, Block 1, Shops at Plymouth Creek as of January 2, 2006 shall be less than $1,552,500 and as of January 2, 2007 shall not be less than $2,800,000. The Assessment Agreement shall be in place until the TIF District terminates. Lot 5, Block 1, Shops at Plymouth Creek as of January 2, 2006 shall be less than $0 and as of January 2, 2007 shall not be less than $1,000,000. The Assessment Agreement shall be in place until the TIF District terminates. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 23 Page 24 TIF 1-1 — Shops at Plymouth Creek Continued Three Year Rule The three-year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has caused public improvements to be constructed in the district. This District met the requirement when the City issued the 2005A GO Tax Increment Bonds in April 2005. Four Year Rule: MN Statute 469.176 sub 6 requires that, within four years from certification date, certain activities must have taken place on each parcel within the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. The State Legislature amended the four- year rule limit in 2009 to increase it to six years for districts certified after January 1, 2005 and before April 20, 2009. The four-year deadline was April 4, 2011 and was met because qualifying activities happened prior to this date. Five Year Rule: At least 75% of tax increment revenues generated within the District must be used to pay for qualified costs within the District. In 2009, the State Legislature amended the five-year rule limit to increase it to ten (10) years for Redevelopment or Renewal and Renovation districts certified after June 30, 2003 and before April 20, 2009. In 2014, the State Legislature again amended the five-year rule limit for Redevelopment districts to eight (8) years after certification for districts certified after April 20, 2009 and before June 30, 2012. The five-year deadline (10 -year deadline) for this District is April 4, 2015. This District complied with this rule when the GO TIF Bonds were issued in 2005. Geographic Enlargements: MN Statute 469.175 sub 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. This District may not be enlarged after April 4, 2010. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 24 Page 25 TIF 1-1 — Shops at Plymouth Creek Continued Recommendations. 1. Minimum Assessment Agreement (MAA). Annually assure that the development meets the required MAA amounts. Additional 10% TIF for Affordable Housing. In 2010 the HRA modified the TIF plan to allow an additional 10% pooling for affordable housing projects. It is estimated that the balance available at the end of 2031 (legal end term of the District) will be approximately $313,352. If the City chose to decertify the District when the Bonds are paid off (2/1/22) it is estimated that the balance available at the end of 2021 would be $117,022. This increment may be used to finance improvements to the Plymouth Towne Square facility and the Vicksburg Crossing facility (up to the 35% allotted in each TIF plan, net of administrative costs charged to the District). In addition, they can be used to pay credit -eligible costs for tax credit eligible rental projects. Eligible uses include acquisition and site preparation, construction, rehabilitation and public improvements directly related to the housing as long as these costs were not funded through tax credits (does not apply if all eligible expenses are funded through tax credits). The funds can be spent anywhere within the City and do not need to be located within the Project Area. The income and rent guidelines are defined as follows: Rental Housing: 20% of the units occupied by families at 50% of median income (20/50) or 40% of the units occupied by families at 60% of median income (40/60) and rents for all the income -restricted units must not exceed 30% of the applicable income limit 2. Use of Legal Pooling Funds. At the end of 2016, there was $361,668 available for legal pooling. It is estimated that there will be approximately $840,095 available for legal pooling in 2022. We recommend that the HRA develop a plan for use of these funds. If no pooling is completed, the balance will have to be returned when the district expires. 3. Six Year Rule. MN Statute 469.1763 subdivision 4 requires that beginning in year 6 of the district, the City must utilize 75% of the tax increment generated to pay obligations. Because the HRA modified the TIF plan to allow an additional 10% pooling for affordable housing projects, this requirement is reduced to 65%. We recommend annually reviewing this requirement to assure 65% is utilized to pay the Interfund Loan (estimated to be repaid by February 1, 2022). After that date (2021 TIF) the City can only retain 10% of the TIF for affordable housing projects that meet the definition under the Statute through the term of the District, which is December 31, 2031. 4. Return oflncrement on an Annual Basis. Starting in pay 2023 when the Obligation of the District is paid off, the City will need to annually monitor, calculate and return any increment in excess of the 35% (10% increase for housing and 25% admin portion) it is retaining for affordable housing purposes and noted in #1 above (estimated to be approximately $196,000). Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 25 Page 26 TIF 1-1 - Shops at Plymouth Creek Continued Modified First Receipt City Approved Cert Request Certified Legal Term 2006 11/23/2004 12/21/2004 4/4/2005 12/31/2031 Interest Income 1.00% I) Budget Mod: Not Recommended at this time Admin Expense 1.00% 2) Admin. Expense is currently: for year 2016 2.0% At or Under Limn 3) 25% pooling for redevelopment projects and 10%poolinigforhousingprojects(HRAVicksburgCrossingorotherhousingneeds) 4) Current redevelopment pooling dollars (25%) 5) Current housing pooling dollars (10%) Revenues Expe Term Tax Increment Bonds Interestlncome TOTALREVENUES Project Bonds Interfund Loan Admin Expense '2031 2,900,000 1,500,000 168,000 4,568,000 1,190,000 2,800,000 - 145,000 Admin Outside District Other Expense TOTALEXPENSE Total Budget 433,000 4,568,000 4,568,000 End of District Projected Actual Total 5,547,817 522,670 357,290 6,427,777 1,258,510 1,001,007 130,697 80,843 17,915 153,412 - 2,642,384 2,642,384 r xx ORIGINAL HSS Geo. Enlargement District Type Redevelopment Project Area Fiscal Disparities B Election County Number 2074 Frozen Rate UTA#1 97.349% 0.000% 0.000% UTA#2 0.000% UTA#3 0.000% Current Year 2016 Modified First Receipt City Approved Cert Request Certified Legal Term 2006 11/23/2004 12/21/2004 4/4/2005 12/31/2031 Interest Income 1.00% I) Budget Mod: Not Recommended at this time Admin Expense 1.00% 2) Admin. Expense is currently: for year 2016 2.0% At or Under Limn 3) 25% pooling for redevelopment projects and 10%poolinigforhousingprojects(HRAVicksburgCrossingorotherhousingneeds) 4) Current redevelopment pooling dollars (25%) 5) Current housing pooling dollars (10%) Revenues Expe Term Tax Increment Bonds Interestlncome TOTALREVENUES Project Bonds Interfund Loan Admin Expense '2031 2,900,000 1,500,000 168,000 4,568,000 1,190,000 2,800,000 - 145,000 Admin Outside District Other Expense TOTALEXPENSE Total Budget 433,000 4,568,000 4,568,000 End of District Projected Actual Total 5,547,817 522,670 357,290 6,427,777 1,258,510 1,001,007 130,697 80,843 17,915 153,412 - 2,642,384 2,642,384 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 26 Page 27 CASH FLOWPROJECTIONS ROLL UP TAX CAPACITY Revenues Expenditures Current Local Affordable Increment TIF Year Year Base Current Fiscal Disparities Captured Tax Rate Tax Increment Bonds Interest Income TOTAL REVENUES Project Bonds Interfund Loan Admin Expense CountyAdmin Housing Returned TOTALEXPENSE Ending Balance 9 2015 - - - - 112.547% 2,047,730 522,670 70,196 2,640,596 1,258,510 1,001,007 16,7O0 46,921 4,139 80,000 - 2,407,211 233,319 10 2016 138,706 479,000 122,977 217,317 110554% 239,390 1,941 241,331 - - 30,694 1,315 861 73,412 - 106,282 368,368 11 2017 138,706 485,360 124,230 222,424 108.393% 240,224 3,684 243,908 - - 26,639 2,402 861 - - 29,902 582,373 12 2018 138,706 485,360 124,230 222,424 108.393% 215,748 5,824 221,572 - - 21,413 2,157 861 - - 24,431 779,514 13 2019 138,706 485,360 124,230 222,424 108.393% 215,748 7,795 223,543 - - 16,450 2,157 861 - - 19,468 983,589 14 2020 138,706 485,360 124,230 222,424 108.393% 215,748 9,836 225,584 - - 11,449 2,157 861 - - 14,467 1,194,705 15 2021 138,706 485,360 124,230 222,424 108.393% 215,748 11,947 227,695 - - 6,246 2,157 861 - - 9,264 1,413,136 16 2022 138,706 485,360 124,230 222,424 108.393% 215,748 14,131 229,879 - - 1,106 2,157 861 - - 4,125 1,638,890 17 2023 138,706 485,360 124,230 222,424 108.393% 215,748 16,389 232,137 - - - 2,157 861 - - 3,018 1,868,009 18 2024 138,706 485,360 124,230 222,424 108.393% 215,748 18,680 234A28 - - - 2,157 861 - - 3,018 2,099,419 19 2025 138,706 485,360 124,230 222,424 108.393% 215,748 20,994 236,742 - - - 2,157 861 - - 3,018 2,333,142 20 2026 138,706 485,360 124,230 222,424 108.393% 215,748 23,331 239,079 - - - 2,157 861 - - 3,018 2,569,203 21 2027 138,706 485,360 124,230 222,424 108.393% 215,748 25,692 241,440 - - - 2,157 861 - - 3,018 2,807,625 22 2028 138,706 485,360 124,230 222,424 108.393% 215,748 28,076 243,824 - - - 2,157 861 - - 3,018 3,048,431 23 2029 138,706 485,360 124,230 222,424 108.393% 215,748 30,484 246,232 - - - 2,157 861 - - 3,018 3,291,645 24 2030 138,706 485,360 124,230 222,424 108.393% 215,748 32,916 248,664 - - - 2,157 861 - - 3,018 3,537,291 25 2031 138,706 485,360 124,230 222,424 108.393% 215,748 35,373 251,121 - - - 2,157 861 - - 3,018 3,785,393 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 26 Page 27 TIF 1-1 - Shops at Plymouth Creek Continued TEST 1: Admin per TIF Plan 400,000 TEST 2: Estimated TIF Admin Allowable (10%) $625,000 Estimated Total TIF Revenues per TIF Plan $6,250,000 TEST 3: Cumulative TI F Admin Allowable (10%) $590,511 Total TIF Revenues for the Project $5,905,107 RESULTS: Admin per TIF Plan $400,000 Actual Admin Expenses $80,843 Available Admin $319,157 Actual Percentage 1.4% Pursuant to M.S. 469.1763 Subd. 2: District Type: Does this section apply? Certification Request Date: Does TIF Plan Specify Assisting Housing Outside Project Area? If so, What is the Additional %Allowed in TIF Plan (Up to 10%): Total Pooling %: Accummulated Totals 1 1 Tax Increment TIF Year Year Admin. Expenses Total %Allowable Current Year Cummulative Admin Costs 9 2015 46,921 2,117,926 2.2% 2,047,730 2,047,730 46,921 10 2016 48,236 2,359,257 2.0% 239,390 2,287,120 48,236 11 2017 50,638 2,603,165 1.9% 240,224 2,527,344 50,638 12 2018 52,796 2,824,737 1.9% 215,748 2,743,092 52,796 13 2019 54,953 3,048,280 1.8% 215,748 2,958,840 54,953 14 2020 57,111 3,273,864 1.7% 215,748 3,174,588 57,111 15 2021 59,268 3,501,559 1.7% 215,748 3,390,336 59,268 16 2022 61,426 3,731,438 1.6% 215,748 3,606,084 61,426 17 2023 63,583 3,963,575 1.6% 215,748 3,821,832 63,583 18 2024 65,741 4,198,003 1.6% 215,748 4,037,580 65,741 19 2025 67,898 4,434,745 1.5% 215,748 4,253,328 67,898 20 2026 70,056 4,673,825 1.5% 215,748 4,469,076 70,056 21 2027 72,213 4,915,265 1.5% 215,748 4,684,825 72,213 22 2028 74,371 5,159,089 1.4% 215,748 4,900,573 74,371 23 2029 76,528 5,405,322 1.4% 215,748 5,116,321 76,528 24 2030 78,685 5,653,986 1.4% 215,748 5,332,069 78,685 25 2031 80,843 5,905,107 1.4% 215,748 5,547,817 80,843 Redevelopment Yes 12/21/2004 Yes 10% 35% 25% Spent Outside for Cumulative Annual 1u% Spent For Cumulative Annual for Qualified Qualified Available for Available for for Affordable Affordable Available for Available for edevelopment Redevelopment Pooling Pooling Housing Costs Housing Pooling Pooling 465,012 177,146 177,146 136,173 80,000 56,173 56,173 58,532 361,668 184,522 23,939 73,412 6,700 23,939 57,654 551,651 189,983 24,022 - 30,723 24,022 51,779 632,977 81,327 21,575 52,297 21,575 51,780 684,757 51,780 21,575 73,872 21,575 51,779 736,536 51,780 21,575 95,447 21,575 51,780 788,316 51,780 21,575 117,022 21,575 51,779 840,095 51,780 21,575 138,597 21,575 - 840,095 - 19,417 158,014 19,417 840,095 19,417 177,431 19,417 840,095 19,417 196,849 19,417 840,095 19,417 216,266 19,417 840,095 19,417 235,683 19,417 840,095 19,417 255,100 19,417 840,095 19,417 274,518 19,417 840,095 19,417 293,935 19,417 840,095 19,417 313,352 19,417 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 27 Page 28 TIF 1-1 — Shops at Plymouth Creek Continued 2/1/2015 835,000.00 0.00 0.00 0.00 835,000.00 1 -Feb 2015 0.0 835,000.0 44,797.86 16,700.00 1,497.86 790,202.17— 1 -Aug 2015 0.5 790,202.14 45,693.82 15,804.04 61,497.86 744,508.33 1 -Feb 2016 1.0 744,508.33 46,607.69 14,890.17 61,497.86 697,900.64 1 -Aug 2016 1.5 697,900.64 63,843.74 13,958.01 77,801.75 634,056.90 1 -Feb 2017 2.0 634,056.90 65,391.70 12,681.14 78,072.84 568,665.21 1 -Aug 2017 2.5 568,665.21 66,699.54 11,373.30 78,072.84 501,965.67 1 -Feb 2018 3.0 501,965.67 60,078.80 10,039.31 70,118.11 441,886.87 1 -Aug 2018 3.5 441,886.87 61,280.37 8,837.74 70,118.11 380,606.49 1 -Feb 2019 4.0 380,606.49 62,505.98 7,612.13 70,118.11 318,100.51 1 -Aug 2019 4.5 318,100.51 63,756.10 6,362.01 70,118.11 254,344.41 1 -Feb 2020 5.0 254,344.41 65,031.22 5,086.89 70,118.11 189,313.18 1 -Aug 2020 5.5 189,313.18 66,331.85 3,786.26 70,118.11 122,981.33 1 -Feb 2021 6.0 122,981.33 67,658.48 2,459.63 70,118.11 55,322.85 1 -Aug 2021 6.5 55,322.85 55,322.85 1,106.46 56,429.31 0.00 1 -Feb 2022 1 7.0 TOTALS 835.000.00 130,697.09 965.697.09 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 28 Page 29 TIF 1-2 — Vicksburg Commons Description: Vicksburg Commons (County number 2075) is a Qualified Housing District established in 2006 and is located within Redevelopment Project Area No. 1. Originally, the district encompassed a 19.53 -acre parcel of land and was established to facilitate the development of a 50 -unit rental town home project, of which 100% of the units would be affordable to persons or families at or below 50% of the area median income. In October of 2006, the HRA entered into a development agreement with Vicksburg Commons Limited Partnership (Common Bond). In it, the HRA agreed to loan $250,000 to the Developer, which would be payable from 50% of the tax increment received from the TIF district, after application of a 5% reduction for administrative costs. In addition, the HRA agreed to reimburse the Developer for public improvement costs and issued a Tax Increment Note in the amount of $250,000, payable from the remaining 50% of tax increment revenues at 6% interest. Adopted ...........................06/ 13/2006 Requested Date ...................06/29/2006 Certified Date ....................07/17/2006 First Increment .......................06/2008 Obligation End Date..............02/01/2027 Decertifies ........................12/31/2033 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 29 Page 30 TIF 1-2 — Vicksburg Commons Continued Administrative Authority: The Plymouth Housing and Redevelopment Authority is responsible for this District. Parcels: 04-118-22-22-0001 1 Vacant Land 1 04-118-22-22-0005 Fiscal Disparities Election: Vicksburg Commons Rental Town Homes (4d The City elected to calculate fiscal disparities from outside (A election) the district. This election does not have a financial effect on the district because it contains only non-commercial properties, which do not contribute to the fiscal disparities pool. Original and Current Tax Rate: Original (Pay 2007): 93.6530% Current (Pay 2017): 107.056% Allowable Uses: MN Statute 469.176 subd. 4d specifies the activities on which tax increment from a housing district may be spent. In general, tax increment must be spent on housing projects meeting the income guidelines, public improvements directly related to housing projects and administrative expenses. The City has used increment from this district to support affordable housing initiatives, in compliance with TIF law. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 30 Page 31 TIF 1-2 — Vicksburg Commons Continued Obligations: There is currently two (2) PAYGO Notes in this District as follows: $250,000 PAYGO Note at 6.00% interest. The Note was issued on issued on October 31, 2006, to Vicksburg Commons Limited Partnership. The Note is payable from 50% of the increment received from the District, after deducting the HRA's 5% administrative fee, and is payable from August 1, 2008 through February 1, 2034. After the 2/1/2017 payment, the current balance is $87,601.92 and the projected final payment is on August 1, 2025. The maximum capitalized interest paid on the Note shall not exceed and shall not be less than $35,210.21 as provided in the TIF Plan. To date $19,451.16 was paid in capitalized interest. In addition, the maximum total Note payments cannot exceed $546,480.87. To date at total of $272,867.85 has been paid on the Note. • $250,000 loan at 6.00% interest. The Loan was made on October 31, 2006 to Vicksburg Commons Limited Partnership. The Note is payable from 50% of the increment received from the District, after deducting the HRA's 5% administrative fee, and is payable from August 1, 2008 through February 1, 2034. After the 2/1/2017 payment, the current balance is $99,808.51 and the projected final payment is on February 1, 2027. The maximum capitalized interest paid on the Loan shall not exceed and shall not be less than $35,210.21 as provided in the TIF Plan. To date $19,451.16 was paid in capitalized interest. Income Compliance Requirements: Income limitations are required to be monitored on an on-going basis for a Housing District. The Authority is required to substantiate that the applicable income limitations and rent restrictions are being met on an annual basis for rental. The compliance must be completed regardless of whether the project receives tax credits or not, pursuant to 469.174 sub 11. The Developer has been submitting the required documentation by February 1 on an annual basis and have continued to meet the requirement that 100% of the units are affordable to persons and families at or below 50% of the area median income (AMI). If the income of an individual or family occupying the project increases above 50% but not greater than 125% of the AMI, then the unit will continue to be incompliance. This income requirement is required to stay in place through the term of the Agreement. Other Development Agreement Compliance: 1. Minimum Assessment Agreement. The minimum market value as of January 2, 2007 shall be $2,643,000 and as of January 2, 2008 shall be $6,835,000. The Assessment Agreement shall be in place until the TIF District terminates. M� Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 31 Page 32 TIF 1-2 — Vicksburg Commons Continued Four Year Rule: MN Statute 469.176 sub 6 requires that, within four years from certification date, certain activities must have taken place on each parcel within the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. The State Legislature amended the four- year rule limit to increase it to six years for districts certified after January 1, 2005 and before April 20, 2009. The four-year deadline was July 17, 2012. During research done in order to comply with this rule, staff discovered certain parcels needed to be removed from the District. The HRA took action to remove the parcels by resolution. After subsequent communication with the County, these parcels were removed for payable 2013. Five Year Rule: The five-year rule is not applicable to housing districts. Geographic Enlargements: MN Statute 469.175 sub 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. This District may not be enlarged after July 17, 2011. Recommendations: 1. Income Verification. The HRA will need to continue to receive and keep income verification reports for the project to assure that 100% of the units are affordable to persons at or below 50% of the AMI. 2. Decertification of the District. The District's obligations will be paid off on February 1, 2027 (pay 2026 TIF). The HRA should discuss with the Developer their plans for maintaining the project's affordability longer than the required term of the obligation. If they choose to not maintain the affordability, the HRA will need to decertify the TIF district for Pay 2027. If they choose to maintain the affordability, the will need to continue to report to the HRA on an annual basis. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 32 Page 33 TIF 1-2 — Vicksburg Commons Continued 3. Use of Increment. If the Developer agrees to maintain the affordability after 2026, the HRA will be able to continue to collect seven (7) more years of TIF for use on affordable housing projects (2027-2033). It is estimated that the balance available at the end of 2033 will be approximately $255,256 (balance would be $54,543 at the end of 2026). This increment may be used to pay eligible costs for "housing projects" as defined by MS 469.174, Subd. 11, located anywhere within the City limits. A housing project is a rental or owner -occupied housing development intended for occupancy by low and moderate income families. The income guidelines are defined in MS 469.1761 as follows: Rental Housing: 20% of the units occupied by families at 50% of median income (20/50) or 40% of the units occupied by families at 60% of median income (40/60). Owner Occupied: Assistance to home owner's with an income at or below 100% of the median income for a family of two or less or 115% of the median income for a family of three or more. Typically, TIF is utilized for capital expenditures, but may be used for non -capital expenditures on a limited basis. Examples of potential rental housing projects would include: 1. New affordable rental housing as part of redevelopment (20/50 or 40/60 election) 2. Renovation of an existing rental housing development (20/50 or 40/60 election) 3. Providing subsidy to an existing project that is earmarked for additional affordability (20/50 or 40/60 election) Examples of potential owner -occupied projects would include: 1. Site acquisition and demolition for infill lots that will be sold for new housing construction 2. Acquisition of foreclosed homes for resale to income qualified buyers 3. Rehabilitation loans for home improvements (including HIA owners) 4. Second mortgages to qualified home buyers In order for the HRA to continue to utilize these funds for housing projects, the development is required to continue to meet income guidelines and report them annually to the HRA (100% of the units affordable at 50% of AMI). The HRA needs to annually monitor the income verification to assure that the existing income requirements are met. If the income requirements are not met on any given year, then the HRA will need to return that year's increment to the County for redistribution. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 33 Page 34 TIF 1-2 - Vicksburg Commons Continued r ,• , , ORIGINAL HSS Geo. Enlargement Interest Income 1.00% District Type Housing Admin Expense 2.75% Project Area Fiscal Disparities A Election County Number 2075 Frozen Rate UTA#1 93.653% 0.000% 0.000% UTA#2 0.000% UTA#3 0.000% Current Year 2016 RECOMMENDATIONS 1) Unlimited pooling for affordable housing - approximately $28O,O0O at end of District term 2) Budget Mod: Not Recommended at this time. 3) Admin. Expense is currently: 4.8% At or Under Limit Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 34 Page 3 5 Decertifies Revenues Expenditures First Receipt City Approved Cert Request Certified Legal Term Expected Term Tax Increment Credits Interestlncome Loan Proceeds TOTALREVENUES Project Paygo Admin Expense CountyAdmin Outside District Other Expense TOTAL EXPENSE Total Budget Original Budget 2008 6/13/2006 6/30/2006 7/17/2O06 12/31/2033 12/31/2033 1,360,000 - 20,000 500,000 1,880,000 500,000 1,241,579 68,000 - - 70,421 1,880,000 1,880,000 Cumulative Modified - - - - - - - - - - End of District Projected Actual Total 1,057,005 12,526 12,394 1,081,925 756,981 40,915 12,713 826,669 810,609 Under/ (Over) Budget 302,995 (12,526) 7,606 500,000 798,075 500,000 484,598 27,085 (12,713) - 70,421 1,053,331 1,069,391 CASH FLOW PROJECHONS ROLL UP TAX CAPACITY Revenues Expenditures Increment Current Local TIF Year Year Base Current Fiscal Disparities Captured Tax Rate Tax Increment Credits Interest Income Loan Proceeds TOTAL REVENUES Project Paygo Admin Expense County Admin Affordable Housing Returned TOTAL EXPENSE Ending Balance 7 2015 - - - - 110.935% 541,021 12,526 501 - 554,048 - 508,289 26,641 2,813 - - 537,743 16,305 8 2016 14,877 43,253 - 28,376 109.046% 23,591 121 23,712 - 23,985 733 550 - - 25,268 14,749 9 2017 14,877 45,916 - 31,039 107.056% 28,964 147 29,112 - 25,216 797 550 - - 26,562 17,299 10 2018 14,877 45,916 - 31,039 107.056% 28,964 173 29,137 - 27,516 797 550 - - 28,863 17,574 11 2019 14,877 45,916 - 31,039 107.056% 28,964 176 29,140 - 27,516 797 550 - - 28,863 17,851 12 2020 14,877 45,916 - 31,039 107.056% 28,964 179 29,143 - 27,516 797 550 - - 28,863 18,131 13 2021 14,877 45,916 - 31,039 107.056% 28,964 181 29,146 - 27,516 797 550 - - 28,863 18,414 14 2022 14,877 45,916 - 31,039 107.056% 28,964 184 29,148 - 27,516 797 550 - - 28,863 18,700 15 2023 14,877 45,916 - 31,039 107.056% 28,964 187 29,151 - 27,516 797 550 - - 28,863 18,989 16 2024 14,877 45,916 - 31,039 107.056% 28,964 190 29,154 - 20,637 797 550 - - 21,984 26,159 17 2025 14,877 45,916 - 31,039 107.056% 28,964 262 29,226 - 13,758 797 550 - - 15,105 40,281 18 2026 14,877 45,916 - 31,039 107.056% 28,964 403 29,367 - 13,758 797 550 - - 15,105 54,543 19 2027 14,877 45,916 - 31,039 107.056% 28,964 545 29,510 - 2,302 797 550 - - 3,649 80,404 20 2028 14,877 45,916 - 31,039 107.056% 28,964 804 29,768 - Will keep district 797 550 - - 1,347 108,826 21 2029 14,877 45,916 - 31,039 107.056% 28,964 1,088 30,053 - open after PAYGO 797 550 - - 1,347 137,532 22 2030 14,877 45,916 - 31,039 107.056% 28,964 1,375 30,340 issuming develope 797 550 - - 1,347 166,525 23 2031 14,877 45,916 - 31,039 107.056% 28,964 1,665 30,630 - is willing to keep 797 550 - - 1,347 195,808 24 2032 14,877 45,916 - 31,039 107.056% 28,964 1,958 30,922 - original project 797 550 - - 1,347 225,384 25 2033 14,877 45,916 - 31,039 107.056% 28,964 2,254 31,218 - affordable. 797 550 - - 1,347 255,256 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 34 Page 3 5 TIF 1-2 - Vicksburg Commons Continued TEST 1: Admin per TIF Plan 68,000 TEST 2: Estimated TIF Admin Allowable (10%) $138,000 Estimated Total TIF Revenues per TIF Plan $1,380,000 TEST 3: Cumulative TIF Admin Allowable (10%) Total TIF Revenues for the Project $106,940 $1,069,399 RESULTS: Admin per TIF Plan $68,000 Actual Admin Expenses $40,915 Available Admin $27,085 Actual Percentage 3.8% Accummulated Totals Pursuant to M.S. 469.1763 Subd. 2: District Type: Does this section apply? Certification Request Date: Does TIF Plan Specify Assisting Housing Outside Project Area? If so, What is the Additional %Allowed in TIF Plan (Up to 30%): Total Pooling %: Tax Increment TIF Year Year Admin. Expenses Total %Allowable 2,402 Current Year Cummulative Admin Costs 100% for Affordable Housing 7 2015 26,641 541,522 4.9% 553,547 553,547 26,641 526,906 8 2016 27,374 565,234 4.8% 6,981 23,591 577,138 27,374 22,858 9 2017 28,171 594,346 4.7% 27,618 28,964 606,102 28,171 28,168 10 2018 28,967 623,483 4.6% 28,964 635,067 28,967 28,168 11 2019 29,764 652,623 4.6% 28,964 664,031 29,764 28,167 12 2020 30,560 681,766 4.5% 28,964 692,995 30,560 28,168 13 2021 31,357 710,912 4.4% 28,964 721,960 31,357 28,168 14 2022 32,153 740,060 4.3% 28,964 750,924 32,153 28,168 15 2023 32,950 769,211 4.3% 28,964 779,888 32,950 28,168 16 2024 33,746 798,366 4.2% 28,964 808,852 33,746 28,167 17 2025 34,543 827,591 4.2% 28,964 837,817 34,543 28,168 18 2026 35,339 856,959 4.1% 28,964 866,781 35,339 28,168 19 2027 36,136 886,468 4.1% 28,964 895,745 36,136 28,168 20 2028 36,932 916,237 4.0% 28,964 924,710 36,932 28,167 21 2029 37,729 946,289 4.0% 28,964 953,674 37,729 28,168 22 2030 38,525 976,629 3.9% 28,964 982,638 38,525 28,168 23 2031 39,322 1,007,258 3.9% 28,964 1,011,603 39,322 28,168 24 2032 40,118 1,038,181 3.9% 28,964 1,040,567 40,118 28,168 25 2033 40,915 1,069,399 3.8% 28,964 1,069,531 40,915 28,167 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota Housing Yes 6/30/2006 No 0% 100% Outside Cumulative Available for Annual Available Pooling for Pooling 16,305 16,305 14,749 14,749 17,151 2,402 17,253 102 17,355 102 17,456 102 17,558 102 17,660 102 17,762 102 24,742 6,981 38,602 13,860 52,462 13,860 77,777 25,315 105,395 27,618 133,013 27,618 160,631 27,618 188,248 27,618 215,866 27,618 243,484 27,618 August 2017 Page 35 Page 36 TIF 1-2 — Vicksburg Commons Continued City of Plymouth Housing and Redevelopment Authority Principal Ledger - Vicksburg Commons PAYGO Note Principal Amount Note Issue •. Final Payment Date $ 250,000 • 0. 1 -Feb -34 Interest Due Total Tax Tax Increment Available (95%) Increment Available at Total 00% Interest Rate Payments 6.00% Note Balance 10/31/2006 $ 250,000.00 2/1/2007 3,780.82 $ $ 253,780.82 8/1/2007 7,613.42 $ 261,394.25 2/1/2008 7,841.83 $ 269,236.07 8/1/2008 8,077.08 7,862.00 7,862.00 $ 269,451.16 2/1/2009 8,083.53 8,294.88 16,156.88 $ 269,239.81 8/1/2009 8,077.19 34,091.00 50,247.88 $ 243,226.01 2/1/2010 7,296.78 17,377.25 67,625.13 $ 233,145.54 8/1/2010 6,994.37 - 6,973.81 74,598.94 $ 233,166.09 2/1/2011 6,994.98 42,165.00 39,074.64 113,673.58 $ 201,086.43 8/1/2011 6,032.59 42,165.00 22,071.17 135,744.75 $ 185,047.86 2/1/2012 5,551.44 53,074.80 24,201.75 159,946.50 $ 166,397.54 8/1/2012 4,991.93 53,074.80 28,012.38 187,958.88 $ 143,377.09 2/1/2013 4,301.31 18,049.00 28,012.38 215,971.26 $ 119,666.02 8/1/2013 3,589.98 18,049.00 8,573.35 224,544.61 $ 114,682.65 2/1/2014 3,440.48 17,093.50 8,573.35 233,117.96 $ 109,549.78 8/1/2014 3,286.49 17,093.50 8,119.79 241,237.75 $ 104,716.49 2/1/2015 3,141.49 12,952.50 8,119.79 249,357.54 $ 99,738.19 8/1/2015 2,992.15 12,952.50 6,152.39 255,509.93 $ 96,577.95 2/1/2016 2,897.34 12,952.50 6,152.39 261,662.32 $ 93,322.89 8/1/2016 2,799.69 13,253.45 6,626.82 268,289.14 $ 89,495.76 2/1/2017 2,684.87 9,157.42 4,578.71 272,867.85 $ 87,601.92 8/1/2017 2,628.06 13,758.05 6,879.02 279,746.87 $ 83,350.96 2/1/2018 2,500.53 13,758.05 6,879.02 286,625.90 $ 78,972.46 8/1/2018 2,369.17 13,758.05 6,879.02 293,504.92 $ 74,462.62 2/1/2019 2,233.88 13,758.05 6,879.02 300,383.94 $ 69,817.47 8/1/2019 2,094.52 13,758.05 6,879.02 307,262.96 $ 65,032.97 2/1/2020 1,950.99 13,758.05 6,879.02 314,141.99 $ 60,104.94 8/1/2020 1,803.15 13,758.05 6,879.02 321,021.01 $ 55,029.06 2/1/2021 1,650.87 13,758.05 6,879.02 327,900.03 $ 49,800.91 8/1/2021 1,494.03 13,758.05 6,879.02 334,779.06 $ 44,415.92 2/1/2022 1,332.48 13,758.05 6,879.02 341,658.08 $ 38,869.37 8/1/2022 1,166.08 13,758.05 6,879.02 348,537.10 $ 33,156.43 2/1/2023 994.69 13,758.05 6,879.02 355,416.12 $ 27,272.10 8/1/2023 818.16 13,758.05 6,879.02 362,295.15 $ 21,211.24 2/1/2024 636.34 13,758.05 6,879.02 369,174.17 $ 14,968.56 8/1/2024 449.06 13,758.05 6,879.02 376,053.19 $ 8,538.59 2/1/2025 610.88 13,287.50 6,643.75 366,252.95 $ 2,505.72 /20251 13,287.50 3,134.93 366,252.95 $ 0.00 TOTAL 135,831.87 554,978.65 385,831.87 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 36 Page 37 TIF 1-2 — Vicksburg Commons Continued City of Plymouth Housing and Redevelopment Authority Principal Ledger - Vicksburg Commons Internal Loan from Reserve Fund Principal Amount Loan Issue Date $ 250,000 Interest Rate 6.00% Final Payment Date Interest Due Total Tax Tax Increment Available Increment Available at 50.00% Total Payments Note Balance 10/31/2006 $ 250,000.00 2/1/2007 3,780.82 $ 253,780.82 8/1/2007 7,613.42 $ 261,394.25 2/1/2008 7,841.83 $ 269,236.07 8/1/2008 8,077.08 7,862.00 7,862.00 $ 269,451.16 2/1/2009 8,083.53 8,294.88 16,156.88 $ 269,239.81 8/1/2009 8,077.19 34,091.36 50,248.24 $ 243,225.65 2/1/2010 7,296.77 17,377.25 67,625.49 $ 233,145.16 8/1/2010 6,994.35 - 17,630.67 85,256.16 $ 222,508.85 2/1/2011 6,675.27 42,165.00 19,537.32 104,793.48 $ 209,646.79 8/1/2011 6,289.40 42,165.00 22,071.17 126,864.65 $ 193,865.03 2/1/2012 5,815.95 53,074.80 24,201.75 151,066.40 $ 175,479.23 8/1/2012 5,264.38 53,074.80 28,012.38 179,078.78 $ 152,731.23 2/1/2013 4,581.94 18,049.00 28,011.21 207,089.99 $ 129,301.95 8/1/2013 3,879.06 18,049.00 8,573.36 215,663.35 $ 124,607.65 2/1/2014 3,738.23 17,093.50 8,573.36 224,236.71 $ 119,772.52 8/1/2014 3,593.18 17,093.50 8,119.79 232,356.50 $ 115,245.91 2/1/2015 3,457.38 12,952.50 8,119.79 240,476.29 $ 110,583.49 8/1/2015 3,317.50 12,952.50 6,152.39 246,628.68 $ 107,748.61 2/1/2016 3,232.46 13,253.64 6,152.39 252,781.07 $ 104,828.68 8/1/2016 3,144.86 13,253.45 6,626.73 259,407.80 $ 101,346.81 2/1/2017 3,040.40 9,157.42 4,578.71 263,986.51 $ 99,808.51 8/1/2017 2,994.26 13,758.05 6,879.02 270,865.53 $ 95,923.74 2/1/2018 2,877.71 13,758.05 6,879.02 277,744.55 $ 91,922.43 8/1/2018 2,757.67 13,758.05 6,879.02 284,623.57 $ 87,801.08 2/1/2019 2,634.03 13,758.05 6,879.02 291,502.60 $ 83,556.09 8/1/2019 2,506.68 13,758.05 6,879.02 298,381.62 $ 79,183.75 2/1/2020 2,375.51 13,758.05 6,879.02 305,260.64 $ 74,680.24 8/1/2020 2,240.41 13,758.05 6,879.02 312,139.66 $ 70,041.62 2/1/2021 2,101.25 13,758.05 6,879.02 319,018.69 $ 65,263.85 8/1/2021 1,957.92 13,758.05 6,879.02 325,897.71 $ 60,342.74 2/1/2022 1,810.28 13,758.05 6,879.02 332,776.73 $ 55,274.00 8/1/2022 1,658.22 13,758.05 6,879.02 339,655.76 $ 50,053.20 2/1/2023 1,501.60 13,758.05 6,879.02 346,534.78 $ 44,675.77 8/1/2023 1,340.27 13,758.05 6,879.02 353,413.80 $ 39,137.02 2/1/2024 1,174.11 13,758.05 6,879.02 360,292.82 $ 33,432.11 8/1/2024 1,002.96 13,758.05 6,879.02 367,171.85 $ 27,556.05 2/1/2025 826.68 13,758.05 6,879.02 374,050.87 $ 21,503.71 8/1/2025 645.11 13,758.05 6,879.02 380,929.89 $ 15,269.80 2/1/2026 458.09 13,758.05 6,879.02 387,808.92 $ 8,848.87 8/1/2026 265.47 13,758.05 6,879.02 394,687.94 $ 2,235.31 2/1/2027 67.06 13,758.05 2,302.37 396,990.31 $ 0.00 TOTAL 146,990.31 597,495.02 396,990.31 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 37 Page 38 TIF 1-3 — Plymouth Crossroads Station Description. Plymouth Crossroads (County number 2076) is a Redevelopment District established in 2006 and is located within Redevelopment Project Area No. 1. Originally, the , f district encompassed 18.26 acres on 6 parcels of land and was _ =� j•.'; " M established to facilitate the redevelopment of the Plymouth �r;; �..... ., , r +� ON Crossroads Station. Originally, the City signed a development '` r " ��_ �� i +1 a' 10 n agreement with Dove Capital I, LLC on May 1, 2007. Dove in::: D.Aim'" a 11.I.. n -r_ —,. ZZ7 -As Capital, went out of business and the property reverted to the r bank. On May 1, 2011, the HRA approved assistance to Oppidan (dba KTJ 198, LLC) and its sub developers for a multi -phase development including four-story, 90 -unit senior assisted living complex, a McDonalds, and approximately 35,000 to 48,000 square feet of commercial/retail and/or office. On May 1, 2014, the HRA issued a TIF Note to KTJ 198 LLC who in turn assigned it to Minnwest Bank Metro on February 1, 2014. On March 10, 2014, a total of $225,000 was paid on the Note from cash accumulated in the district to date. The term of the note is through August 1, 2029 and is expected to be paid in full, assuming the office building in the district is built as expected. In 2008, the City approved a $138,500 Interfund Loan from its Water Resource Fund. The Loan was approved to finance improvements to a culvert that goes under Highway 55. Of the amount authorized, $40,304 was advanced in 2008 and paid in full by year ended 2009. Adopted ...........................10/24/2006 Requested Date ...................02/01/2007 Certified Date....................05/10/2007 First Increment .......................07/2008 Obligation End Date..............08/01/2025 Decertifies ........................12/31/2033 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 38 Page 39 TIF 1-3 — Plymouth Crossroads Station Continued Administrative Authority: The Plymouth Housing and Redevelopment Authority is responsible for this District. Parcels: Former PID # Former Use New PID # New Use 36-118-22-23-0006 (Southeast quarter of NE Shopping Mall 35-118-22-14-0029 Waters Senior Apartments quarter, Section 35, Town 118, Range 22) 38-118-22-23-0006 (Southwest quarter of NW Shopping Mall 35-118-22-14-0030 McDonalds quarter, Section 36, Town 118, Range 22) 36-118-22-23-0007 Vacant Land 35-118-22-14-0031 Storm Water Pond 36-118-22-23-0008 Vacant Land 35-118-22-14-0032 Vacant Land 35-118-22-17-0026 Vacant Land 36-118-22-23-0006 Vacant Land Vacated Hwy 55 ROW ROW 38-116-22-23-0058 Vacant Land Fiscal Disparities Election: County reports show the district as having an A election. TIF Plan documents indicate B election. Staff has reviewed this and the County concurred that it should be B election. The County originally agreed to make this change this for taxes payable 2011, but that did not occur. Staff requested that the County change the fiscal disparities calculation for payable 2018 and the County has stated they will make the change. Original and Current Tax Rate: Original (Pay 2007): 90.533% Current (Pay 2017): 107.550% Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 39 Page 40 TIF 1-3 — Plymouth Crossroads Station Continued Allowable Uses: MN Statute 469.176 sub 4j specifies the activities on which tax increment from a redevelopment district may be spent. In general, tax increment must be spent on correcting those conditions which caused the area to be designated a redevelopment district. Allowable uses include property acquisition, demolition, soils correction, environmental remediation, rehabilitation, installation of public utilities, road, sidewalks, public parking facilities, and allowable administrative expenses. Obligations: There is currently one PAYGO Note in this District as follows: • $1,899,645 PAYGO Note at 6.00% interest. The Note was issued on issued on February 1, 2014, to KTJ 198 LLC (Oppidan) and the Note was assigned to Minnwest Bank Metro on February 2, 2014. The Note is payable from 90% of the increment received from the District and is payable from February 1, 2014 through February 1, 2034. After the 2/1/2017 payment, the current balance is $1,353,825.28 and the projected final payment is on August 1, 2025. Four Year Rule: MN Statute 469.176 sub 6 requires that, within four years from certification date, certain activities must have taken place on each parcel within the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. The State Legislature amended the four- year rule limit to increase it to six years for districts certified after January 1, 2005 and before April 20, 2009. The four-year deadline was May 11, 2013. Five Year Rule: At least 75% of tax increment revenues generated within the District must be used to pay for qualified costs within the District. In 2009, the State Legislature amended the five-year rule limit to increase it to ten (10) years for Redevelopment or Renewal and Renovation districts certified after June 30, 2003 and before April 20, 2009. In 2014, the State Legislature again amended the five-year rule limit for Redevelopment districts to eight (8) years after certification for districts certified after April 20, 2009 and before June 30, 2012. The five-year deadline (10 -year deadline) for this District is May 10, 2017. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 40 Page 41 TIF 1-3 — Plymouth Crossroads Station Continued Geographic Enlargements: MN Statute 469.175 sub 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. The District may not be enlarged after May 11, 2012. Recommendations: 1. Fiscal Disparities Election. Fiscal disparities should be calculated under the "b" election (inside the TIF District). The County has been calculating this election under option "a". They have been notified and stated they will make the correction for pay 2018. The City should review the calculations in 2018 to assure this is completed. 2. Six Year Rule. MN Statute 469.1763 subdivision 4 requires that beginning in year 6 of the district, the City must utilize 75% of the tax increment generated to pay obligations. We recommend annually reviewing this requirement to assure 75% is utilized to pay the TIF Note (estimated to be repaid by August 1, 2025). 3. Additional 10% TIF for Affordable Housing. The HRA could modify the TIF plan to allow an additional 10% pooling for affordable housing projects. If the HRA is interested in this, we recommend completing an analysis to determine the amount of TIF that would be available under this election. 4. Decertification. If the HRA chooses to not modify the TIF plan to allow for the additional dollars to be utilized for affordable housing, this district will need to be decertified early when the Note is paid in full, which is estimated to be August 2025 (current term is December 31, 2033). 5. Pooling Analysis and Use of Funds. Currently there is approximately cash balance $141,030 in the District for use on redevelopment projects, which represents the actual cash balance at December 31, 2016 after the obligation payments are made. It is estimated that there will be approximately $465,930 available for use when the obligations are paid in 2025. We recommend that the HRA update its pooling analysis and develop a plan for use of these funds. If no pooling is completed, the balance will need to be returned either when the district expires or when the obligation is paid. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 41 Page 42 TIF 1-3 - Plymouth Crossroads Station Continued I JI71NlM�IPIi11�U4D11U1PL Outside District Returned TOTAL EXPENSE ORIGINAL HSS Geo. Enlargement Interest Income 1.00% District Type Redevelopment Admin Expense 0.50% Project Area 737,711 Fiscal Disparities B Election County Number 2076 Frozen Rate UTA#1 90.533% 0.000% 0.000% 295,229 UTA#2 0.000% 280,524 UTA#3 0.000% RECOMMENDATIONS 1) Limited Pooling options available 2) Budget Mod: Not Recommended at this time 3) Admin. Expense is currently: 4.0% At or Under limit 4) Fiscal Disparities Election Bshould becorrected with the County for Pay 2O18. 5) District should be decertified early when the Paygo Obligation is paid in full (2025). 6) Remaining fund balance can be used for Admin or Pooling. Decertifies Revenues Expenditures First Receipt City Approved Cert Request Certified Legal Term Expected Term Tax Increment Other Revenue Interestlncome TOTALREVENUES Project Paygo Admin Expense CountyAdmin Outside District Other Expense TOTALEXPENSE Total Budget Budget 2008 10/24/2006 2/1/2001 5/10/2007 12/31/2033 12/31/2025 4,595,918 4,595,918 1,687,000 2,188,103 459,593 261,223 4,595,919 4,595,919 TIF Year Year 7 2015 8 2016 9 2017 10 2018 11 2019 12 2020 13 2021 14 2022 15 2023 16 2024 17 2025 End of District Projected Actual Total 3,060,855 Under/(Over)Budget 1,439,145 TAX CAPACITY ROW PR( 32,754 3,093,609 - 2,564,247 51,197 63,164 1,502,309 1,975,000 (393,329) 398,803 Current Local Base Current Fiscal Disparities Captured Tax Rate Tax Increment Other Revenue Interest Income TOTAL REVENUES Project Paygo Admin Expenditures - - Outside District Returned TOTAL EXPENSE - 111.585% 726,866 10,845 737,711 580,482 39,880 3,215 48,074 343,303 190,203 295,229 109.732% 280,524 797 281,321 252,473 1,050 902 48,074 361,440 201,222 313,366 107.550% 282,678 1,410 284,089 254,410 1,413 902 48,074 361,440 67,988 245,378 107.550% 221,348 1,684 223,032 199,213 1,107 902 48,074 361,440 67,988 245,378 107.550% 221,348 1,902 223,250 199,213 1,107 902 48,074 361,440 67,988 245,378 107.550% 221,348 2,122 223,471 199,213 1,107 902 48,074 361,440 67,988 245,378 107.550% 221,348 2,345 223,693 199,213 1,107 902 48,074 361,440 67,988 245,378 107.550% 221,348 2,570 223,918 199,213 1,107 902 48,074 361,440 67,988 245,378 107.550% 221,348 2,796 224,145 199,213 1,107 902 48,074 361,440 67,988 245,378 107.550% 221,348 3,026 224,374 199,213 1,107 902 48,074 361,440 67,988 245,378 107.550% 221,348 3,257 224,606 82,388 1,107 902 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota a ,a Increment Outside District Returned TOTAL EXPENSE Ending Balance 623,511 114,134 254,425 141,030 256,726 168,393 201,222 190,203 201,222 212,231 201,222 234,480 201,222 256,950 201,222 279,646 201,222 302,569 201,222 325,720 84,396 465,930 August 2017 Page 42 Page 43 TIF 1-3 - Plymouth Crossroads Station Continued TEST 1: Admin per TIF Plan $450,000 TEST 2: Estimated TIF Admin Allowable (10%) $459,592 Estimated Total TIF Revenues per TIF Plan $4,595,918 TEST 3: Cumulative TIF Admin Allowable (10%) Total TIF Revenues for the Project $309,361 $3,093,609 RESULTS: Cumulative TIF Admin Allowable (30%) $309,361 Actual Admin Expenses 51,197 Available Admin $258,164 Actual Percentage 1.7% Accummulated Totals TIF Year Year I Admin. Expenses Total %Allowable 7 2015 39,880 737,711 5.4% 726,866 8 2016 40,930 1,019,032 4.0% 280,524 9 2017 42,343 1,303,121 3.2% 282,678 10 2018 43,450 1,526,153 2.8% 221,348 11 2019 44,557 1,749,403 2.5% 221,348 12 2020 45,664 1,972,874 2.3% 221,348 13 2021 46,770 2,196,567 2.1% 221,348 14 2022 47,877 2,420,485 2.0% 221,348 15 2023 48,984 2,644,630 1.9% 221,348 16 2024 50,091 2,869,004 1.7% 221,348 17 2025 51,197 3,093,609 1.7% 221,348 Pursuant to M.S. 469.1763 Subd. 2: District Type: Does this section apply? Certification Request Date: Does TIF Plan Specify Assisting Housing Outside Project Area? If so, What is the Additional %Allowed in TIF Plan (Up to 10%): Total Pooling %: Redevelopment Yes 2/1/2007 No 0% 25% Vir Tax Increment Current Year Cummulative Y�P1 I C l<1N_I �Kq Admin Costs k11 D1 114Y�1�hf Ci3 i r113 i7i� i! 25% for Qualified Redevelopment Costs Spent Outside Cumulative Available for Pooling Annual Available for Pooling 726,866 726,866 39,880 141,837 141,837 114,134 280,524 1,007,390 40,930 69,081 141,030 26,896 282,678 1,290,068 42,343 69,256 168,393 27,363 221,348 1,511,417 43,450 54,230 190,203 21,810 221,348 1,732,765 44,557 54,230 212,231 22,028 221,348 1,954,113 45,664 54,231 234,480 22,248 221,348 2,175,462 46,770 54,230 256,950 22,471 221,348 2,396,810 47,877 54,230 279,646 22,696 221,348 2,618,158 48,984 54,231 302,569 22,923 221,348 2,839,507 50,091 54,230 325,720 23,152 221,348 3,060,855 51,197 54,230 465,930 140,209 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 43 Page 44 TIF 1-3 — Plymouth Crossroads Station Continued City of Plymouth Housing and Redevelopment Authority Principal Ledger - Plymouth Crossroads Station PAYGO Note - Minnwest Bank Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 44 Page 45 $ 1,899,645.00 2/1/2014 0.00 225,000.00 225,000.00 225,000.00 1,674,645.00 8/1/2014 50,239.35 51,396.03 51,396.03 276,396.03 1,673,488.32 2/1/2015 50,204.65 51,393.30 51,393.30 327,789.33 1,672,299.67 8/1/2015 50,168.99 126,347.96 126,347.96 454,137.29 1,596,120.70 2/1/2016 47,883.62 126,344.67 126,344.67 580,481.96 1,517,659.65 8/1/2016 45,529.79 126,236.38 126,236.38 706,718.34 1,436,953.06 2/1/2017 43,108.59 126,236.371 126,236.37 832,954.71 1,353,825.28 8/1/2017 40,614.76 141,339.10 127,205.19 960,159.90 1,267,234.85 2/1/2018 38,017.05 141,339.10 127, 205.19 1,087,365.09 1,178,046.71 8/1/2018 35,341.40 110,674.17 99,606.75 1,186,971.84 1,113,781.36 2/1/2019 33,413.44 110,674.17 99,606.75 1,286,578.59 1,047,588.05 8/1/2019 31,427.64 110,674.17 99,606.75 1,386,185.34 979,408.94 2/1/2020 29,382.27 110,674.17 99,606.75 1,485,792.09 909,184.46 8/1/2020 27,275.53 110,674.17 99,606.75 1,585,398.84 836,853.24 2/1/2021 25,105.60 110,674.17 99,606.75 1,685,005.59 762,352.09 8/1/2021 22,870.56 110,674.17 99,606.75 1,784,612.34 685,615.90 2/1/2022 20,568.48 110,674.17 99,606.75 1,884,219.09 606,577.63 8/1/2022 18,197.33 110,674.17 99,606.75 1,983,825.84 525,168.21 2/1/2023 15,755.05 110,674.17 99,606.75 2,083,432.58 441,316.52 8/1/2023 13,239.50 110,674.17 99,606.75 2,183,039.33 354,949.27 2/1/2024 10,648.48 110,674.17 99,606.75 2,282,646.08 265,991.00 8/1/2024 7,979.73 110,674.17 99,606.75 2,382,252.83 174,363.98 2/1/2025 5,230.92 110,674.17 99,606.75 2,481,859.58 79,988.15 8/1/2025 2,399.64 110,674.17 82,387.79 2,564,247.37 0.00 TOTALS 664,602.37 2,775,745.40 2,564,247.37 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 44 Page 45 TIF 7-4 — Hoyt Description: The Hoyt TIF District (County number 2069) is a Redevelopment District established in 1995 and is located within Municipal Development District No. 7. Originally, the district encompassed two (2) parcels of land and was established to facilitate the construction of public infrastructure improvements in the Plymouth Technology Park. On December 18, 2001, the TIF District was modified to allow for deficit pooling to District 7-5A to assist in paying for the TIF bonds issued in 2005 when a shortfall occurs. Pursuant to the modification, the amount that the District can contribute is limited to $6,900,000. Because the original obligations are paid, TIF must either be used for deficit pooling to TIF 7-5A or be returned to the County. On February 8, 2011, an administrative modification was completed for the TIF plan that authorized a Spending Plan under Minnesota Statutes 469.176 Sub 4(m). This allowed the City to provide assistance for a 67 -unit affordable housing development (Westview Estates). On June 1, 2011, the City entered into a Development Agreement with Plymouth West View Estates, LLC. and on June 15, 2011 issued them a 30 -year deferred loan for $600,000 at 0% interest (payable on June 15, 2041). If there is an event of default, the interest rate increases to 8%. Adopted...........................08/01/1995 Requested Date ...................08/17/1995 Certified Date ....................03/07/1996 First Increment .......................07/1997 Obligation End Date...............12/31/2022 Decertifies ........................12/31 /2022 Modification #1 ....................12/2/1998 #2 .................. 05/09/2000 #3 (deficit pooling) ........ 12/18/2001 #4 (spending plan).......... 02/08/2011 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota .. r August 2017 Page 45 Page 46 TIF 7-4 — Hoyt Continued Administrative Authority: The City of Plymouth is responsible for this District. Parcels: 10-118-22-23-0004 10-118-22-24-0010 Plymouth Technology Park Plymouth Technology Park Fiscal Disparities Election: 10-118-22-23-0006 10-118-22-23-0008 10-118-22-23-0009 10-118-22-23-0010 10-118-22-23-0011 10-118-22-23-0012 The City elected to calculate fiscal disparities from inside (B election) the district. Original and Current Tax Rate: Original (Pay 1996): 123.1040% Current (Pay 2017): 112.244% Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota Plymouth Technology Park Alidald Plymouth Tech Alidald Plymouth Tech Alidald Plymouth Tech ity of Plymouth Vacant Land of Plymouth Storm Water Pond August 2017 Page 46 Page 47 TIF 7-4 — Hoyt Continued Allowable Uses: TIF 7-4 Redevelopment Funds. MN Statute 469.176 sub 4j specifies the activities on which tax increment from a redevelopment district may be spent. In general, tax increment must be spent on correcting those conditions which caused the area to be designated a redevelopment district. Allowable uses include property acquisition, demolition, soils correction, environmental remediation, rehabilitation, installation of public utilities, road, sidewalks, public parking facilities, and allowable administrative expenses. TIF 7-4 Deficit Pooling — In 2001, the Minnesota legislature enacted sweeping ad valorem property tax changes, effective for taxes payable in 2002. TIF District 7-5A was the only impacted TIF district that was established prior to the legislative change since it was the only District the City issued bonds for (other two district were PAYGO and had sufficient TIF to repay the obligations). Recognizing the impact of these property tax changes, the legislature enacted Minnesota Statutes, § 469.1763, Subdivision 6, permitting authorities to utilize unencumbered tax increment from one district to pay certain deficits in another district, to the extent the deficits were caused by the legislative action. TIF District 74's TIF Plan was administratively modified on December 18, 2001 to allow the City to pool funds to TIF District 7-5A to address deficits caused by the legislative change. Obligations: There are currently two (2) obligations for the District as follows: $600,000 up front 30 -year deferred loan/note at 0% interest. The Note was issued on June 15, 2011 to Plymouth West View Estates, LLC. The note is payable on June 15, 2041, unless forgiven. If there is an event of default, the interest rate increases to 8%. • Up to $6,900,000 deficit pooling to TIF District 7-5A. To date the District has deficit pooled $394,698 and it is anticipated that in total, it will deficit pool $1,003,140 (additional $608,442). Three Year Rule: The three-year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has caused public improvements to be constructed in the district. This District met the requirement when the Development Agreement with Hoyt Properties was signed on August 1, 1995 and a Tax Increment Revenue Note was issued. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 47 Page 48 TIF 7-4 — Hoyt Continued Four Year Rule: MN Statute 469.176 sub 6 requires that, within four years from certification date, certain activities must have taken place on each parcel within the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. The State Legislature amended the four- year rule limit to increase it to six years for districts certified after January 1, 2005 and before April 20, 2009. This District does not fall within this timeframe so it's four-year date is March 7, 2000 and was satisfied due to the development commencing by that date. Five Year Rule: At least 75% of tax increment revenues generated within the District must be used to pay for qualified costs within the District. In 2009, the State Legislature amended the five-year rule limit to increase it to ten (10) years for Redevelopment or Renewal and Renovation districts certified after June 30, 2003 and before April 20, 2009. In 2014, the State Legislature again amended the five-year rule limit for Redevelopment districts to eight (8) years after certification for districts certified after April 20, 2009 and before June 30, 2012. This District does not fall within the aforementioned timeframes and therefore its five-year deadline is March 7, 2001. Geographic Enlargements: MN Statute 469.175 sub 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. This District may not be enlarged after March 7, 2001. Recommendations: 1. Use of Increment for Legal Pooling. At the end of 2017, it is estimated that there will be approximately $732,503 available in legal pooling dollars for redevelopment projects. We recommend that the City develop a plan for use of these funds. If no pooling is completed, the balance will need to be returned either when the district expires or when the obligation is paid. 2. Use of Increment for Deficit Pooling. Currently the 2009 TIF refunding bonds (Interfund Loan) in District 7-5A are outstanding. These bonds are credit enhanced by TIF District 7-4 since revenues are pledged to their repayment. The City should continue to utilize the fund balance in this district for transfers to District 7-5A for deficit pooling and transfer the amount in the same calendar year as the deficits occur. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 48 Page 49 TIF 7-4 - Hoyt Continued 3. Additional 10% TIF for Affordable Housing. The City could modify the TIF plan to allow an additional 10% pooling for affordable housing projects (would need to be completed in 2017). If the City is interested in this, we recommend completing an analysis to determine the amount of TIF that would be available under this election (TIF from 2nd half 2017 through 2022). 4. Deferred Loan. The City should determine if the funds will be returned or forgiven at the end of the loan period. If the funds are returned to the City, they will be restricted for use on redevelopment projects. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 49 Page 50 TIF 7-4 - Hoyt Continued ORIGINAL HSS Geo. Enlargement Interest Income 1,00% 1) Limited Pooling options available District Type Redevelopment Admin Expense 2,00% 2) Budget Mod: Not Recommended at this time Project Area 3) Admin, Expense is currently: 1.2% At or Under Limit Fiscal Disparities B Election County Number 2069 Frozen Rate UTA #1 123,104% 0.000% 0.000% UTA g2 0.000% UTA g3 0.000% Current Year 2016 Decertifies Revenues Expenditures First Deficit Pooling for Receipt City Approved Cert Request Certified Legal Term Expected Term Tax Increment Other Revenue Interestlncome TOTALREVENUES Project Paygo Admin Expense CountyAdmin Affordable Housing Other Expense TOTALEXPENSE Total Budget Budget 1997 8/1/1995 8/17/1995 3/7/1996 12/31/2022 12/31/2022 705,000 - - 705,000 634,500 70,500 705,000 705,000 TIFYear Year Wr TAX CAPACITY Base Current Fiscal End of District Projected Actual Total 6,798,137 423,101 7,221,238 600,000 703,896 56,763 11,134 1,003,140 3,082,523 5,457,456 5,457,456 Under/(Over)Budget 862,863 (423,101) 439,762 34,500 (103,896) 13,737 5,896,860 (3,026,523) 2,203,544 2,214,678 18 2015 40,963 4,512 13,279 310,801 19 2016 7,416 407,720 144,664 255,640 20 2017 7,416 435,220 153,311 274,493 21 2018 7,416 435,220 153,311 274,493 22 2019 7,416 435,220 153,311 274,493 23 2020 7,416 435,220 153,311 274,493 24 2021 7,416 435,220 153,311 274,493 25 2022 7,416 435,220 153,311 274,493 26 2023 CASH FLOW ROLL Revenues Expenditures Current Local Tax Rate Tax Increment Other Revenue Interestlncome TOTALREVENUES Jobs Bill Paygo Admin Expense County Admin 4,658,658 297,522 306,993 306,993 306,993 306,993 306,993 306,993 331,524 4,990,182 600,000 703,896 40,963 4,512 13,279 310,801 1,975 946 17,855 324,847 1,975 946 7,325 314,318 1,975 946 9,796 316,189 1,975 946 12,165 319,158 1,975 946 14,487 321,480 1,975 946 16,670 323,663 1,975 946 105,968 1,975 1,881, 750 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota ling? -5a Increment Returned TOTALEXPENSE Ending Balance 352,114 1,768,523 3,470,008 1,520,174 42,584 45,505 1,785,470 60,893 1,314,000 1,311,814 732,503 64,306 67,227 979,594 76,956 79,877 1,216,506 83,993 86,914 1,448,749 100,331 103,252 1,666, 977 105,968 108,889 1,881, 750 115,993 117,968 1,763, 782 August 2017 Page 50 Page 51 TIF 7-4 - Hoyt Continued ADMINISTRATIVE EXPENSE TEST Year TEST 1: Admin per TIF Plan 70,500 TEST 2: Estimated TIF Admin Allowable (10%) $759,050 Estimated Total TIF Expenses per TIF Plan $7,590,500 TEST 3: Cumulative TIF Admin Allowable (10%) $540,069 Total TIF Expenses for the Project $5,400,693 RESULTS: Admin per TIF Plan $70,500 Actual Admin Expenses $56,763 Available Admin $13,737 Actual Percentage 1.1% Pursuant to M.S. 469.1763 Subd. 2: District Type: Does this section apply? Certification Request Date: Does TIF Plan Specify Assisting Housing Outside Project Area? If so, What is the Additional %Allowed in TIF Plan (Up to 10%): Total Pooling %: Redevelopment Yes 8/17/1995 No 0% 25% TIF Year Year Accummulated Totals Admin. Expenses Total %Allowable Current Year Tax Increment Less: Deficit Less: Jobs Bill Pooling Cummulative Admin Costs 25% for Qualified Costs Spent Outside Cumulative Available for Pooling Annual Available for Pooling 18 2015 40,963 3,429,045 1.2% 4,658,658 600,000 352,114 4,306,544 40,963 1,035,673 - 1,035,673 1,035,673 19 2016 42,938 3,472,575 1.2% 297,522 - 42,584 4,561,482 42,938 61,760 - 1,097,433 61,7601 20 2017 44,913 4,848,414 0.9% 306,993 - 60,893 4,807,581 44,913 59,549 - 732,503 - 21 2018 46,888 4,913,666 1.0% 306,993 - 64,306 5,050,268 46,888 58,697 - 979,594 247,0911 22 2019 48,863 4,991,568 1.0% 306,993 - 76,956 5,280,305 48,863 55,534 - 1,216,506 236,9121 23 2020 50,838 5,076,508 1.0% 306,993 - 83,993 5,503,304 50,838 53,775 - 1,324,988 108,482 24 2021 52,813 5,177,785 1.0% 306,993 - 100,331 5,709,966 52,813 49,691 - 1,374,679 49,6911 25 2022 54,788 5,284,699 1.0% 306,993 - 105,968 5,910,990 54,788 48,281 - 1,422,960 48,2811 26 2023 56,763 5,400,693 1.1% - - 115,993 5,794,997 56,763 - - 1,422,960 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 51 Page 52 TIF 7-5A — Village at Bassett Creek Description: The Village at Bassett Creek Housing District (County number 2071) established in 1998 and is located within Municipal Development District No. 7. Originally, the District encompassed three parcels of land and was established to facilitate the construction of 71 owner -occupied town homes (Village at Bassett Creek) and a 46 -unit, 202 senior rental apartments by Common Bond (Bassett Creek Commons). 20 of the town home units were affordable with the remaining 51 being market rate. 45 of the senior apartments are affordable to persons at or below 50% of the Area median income and I is market rate. On October 15, 1998, the City issued $2,900,000 GO Tax Increment Bonds to finance public improvements for the projects. These bonds were refinanced on November 24, 2009 with the $2,490,000 GO TIF Refunding Bonds. Due to tax reform in 2001, the District does not generate enough tax increment to make payments on the Bonds. On December 18, 2001, the City approved a resolution authorizing TIF Districts 7-4 and 7-6 to deficit pool to the District. In 2013, the City passed a resolution irrevocably committing all increment generated by the District and increments transferred from District 7-4 to payment on the Bonds. The maximum amount that can be transferred from TIF 7-4 is $6.9 million. Adopted...........................09/02/ 1998 Requested Date ................... 11/09/1998 Certified Date ....................04/16/1999 First Increment ........................07/2001 Obligation End Date...............02/01/2023 Decertifies ........................12/31 /2026 Modification .....................12/ 18/2001 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 52 Page 53 TIF 7-5A — Village at Bassett Creek Continued Administrative Authority: The City of Plymouth is responsible for this District. Parcels: Former •. # Former Use New •. # New Use 36-118-22-24-0011 through Village at Bassett Creek Town 36-118-22-24-0003 Vacant Land 0083 and 36-118-22-24-0087 Homes through 0088 36-118-22-24-0004 Vacant Land 36-118-22-24-0084 Bassett Creek Sr. Housing 36-118-22-24-0005 Vacant Land (City Owned) 36-118-22-24-0089 Bassett Creek Office Centre Fiscal Disparities Election: The City elected to calculate fiscal disparities from outside (A election) the district. This election does not have a financial effect on the district because it contains only non-commercial properties, which do not contribute to the fiscal disparities pool. Original and Current Tax Rate: Original (Pay 1999): 123.1510% Current (Pay 2017): 106.871% Allowable Uses: MN Statute 469.176 subd. 4d specifies the activities on which tax increment from a housing district may be spent. In general, tax increment must be spent on housing projects meeting the income guidelines, public improvements directly related to housing projects and administrative expenses. The City has used increment from this district to support affordable housing initiatives, in compliance with TIF law. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 53 Page 54 TIF 7-5A — Village at Bassett Creek Continued Obligations. There is currently one bond for this District as follows: • $2,490,000 GO TIF Refunding Bonds, Series 2009. These bonds were issued on November 24, 2009 and are callable on February 1, 2018 and have an end payment date of February 1, 2023. As of February 2, 2017, the outstanding principal on the Bonds was $1,485,000. Three Year Rule: The three-year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has caused public improvements to be constructed in the district. The deadline for this District was April 19, 2002 and was met when the City issued the 1998A GO Tax Increment bonds. Four Year Rule: MN Statute 469.176 sub 6 requires that, within four years from certification date, certain activities must have taken place on each parcel within the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. The State Legislature amended the four- year rule limit to increase it to six years for districts certified after January 1, 2005 and before April 20, 2009. The four-year deadline was April 19, 2003 and was satisfied. Five Year Rule: The five-year rule is not applicable to housing districts. Geographic Enlargements: MN Statute 469.175 sub 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. This District may not be enlarged after April 16, 2004. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 54 Page 55 TIF 7-5A — Village at Bassett Creek Continued Compliance Requirements. Income limitations are required to be monitored on an on-going basis for a Housing District. The City is required to substantiate that the applicable income limitations and rent restrictions are being met on an annual basis for rental and for the first purchasers of an owner -occupied housing unit. The compliance for rental projects must be completed regardless of whether the project receives tax credits or not, pursuant to 469.174 sub 11. The required documentation was submitted for the for -sale housing portion. For the rental portion, they have been submitting the required documentation on an annual basis and have continued to meet the requirement that 100% of the units are affordable to persons at or below 50% of the area median income (AMI). Recommendations: 1. Income Verification. The City will need to continue to receive and keep income verification reports for the project. 2. Deficit Pooling. Continue to monitor the amount needed on an annual basis from deficit pooling from TIF District 7-4 and make the transfers in the year dollars are needed. 3. Refinancinz of 2009A GO TIF Bonds. These Bonds were issued on November 24, 2009 and are callable on February 1, 2018. The City should review the options of refinancing the Bonds through a new debt issuance and/or interfund loan. 4. Use of Increment. The Bonds will be paid off in 2023 and there are still three (3) years remaining in the District. The City could choose to leave the District open and utilize the TIF generated in 2024-2026 for affordable housing projects. It is anticipated that the amount available for affordable housing will be approximately $552,507 (approximately $184,00/year). This increment may be used to pay eligible costs for "housing projects" as defined by MS 469.174, Subd. 11, located anywhere within the City limits. A housing project is a rental or owner - occupied housing development intended for occupancy by low and moderate income families. The income guidelines are defined in MS 469.1761 as follows: Rental Housing: 20% of the units occupied by families at 50% of median income (20/50) or 40% of the units occupied by families at 60% of median income (40/60). Management Review & Analysis - Tax Increment Financing Districts August 2017 Plymouth, Minnesota Page 55 Page 56 TIF 7-5A — Village at Bassett Creek Continued Owner Occupied: Assistance to homeowners with an income at or below 100% of the median income for a family of two or less or 115% of the median income for a family of three or more. Typically, TIF is utilized for capital expenditures, but may be used for non -capital expenditures on a limited basis. Examples of potential rental housing projects would include: 1. New affordable rental housing as part of redevelopment (20/50 or 40/60 election) 2. Renovation of an existing rental housing development (20/50 or 40/60 election) 3. Providing subsidy to an existing project that is earmarked for additional affordability (20/50 or 40/60 election) Examples of potential owner -occupied projects would include: 1. Site acquisition and demolition for infill lots that will be sold for new housing construction 2. Acquisition of foreclosed homes for resale to income qualified buyers 3. Rehabilitation loans for home improvements (including HIA owners) 4. Second mortgages to qualified home buyers In order for the City to continue to utilize these funds for housing projects, the rental portion of the development is required to continue to meet income guidelines and report them annually to the City (100% of the units affordable at 50% of AMI). The City needs to annually monitor the income verification to assure that the existing income requirements are met. If the income requirements are not met on any given year, then the City will need to return that year's increment to the County for redistribution. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 56 Page 57 TIF 7-5A - Village at Bassett Creek Continued � �axn;uruun:naaexsui�� I I I ORIGINAL HSS Geo. Enlargement Interest Income 1,00% District Type Housing Admin Expense 1,00'E Project Area Fiscal Disparities A Election County Number 2071 Frozen Rate UTA01 123.151% 0.000% 0.000% UTA 82 0.000% UTA 03 0.000% Current Year 2016 RECOMMENDATIONS 1) Limited Pooling options available 21 Budget Mod: Not Recommended at this time 3) Admin. Expense is currently: 2.4% At or Under Limit First Receipt CityApproved Cert Request Certified Legal Term Expected Term Taxlncrement Credits Interestlncome Other Revenue Bonds TOTALREVENUES Project Bonds Admin Expense County Admin OutsldeDIstrlct Other Expense TOTALEXPENSE Total Budget Original Budget 2001 9/2/1998 11/9/1998 4/16/1999 12/31/2026 12/31/2026 3,000,000 3,00)1,000 2,400,000 450,000 150,000 3,000,000 3,000,000 Cumulative Modified 12/18/2001 2,412,608 2,900,000 5,312,608 2,400,000 2,819,846 150,000 5,369,846 51369,846 BEE� 14 2015 15 2016 16 2017 17 2018 18 2019 19 2020 20 2021 21 2022 22 2023 23 2024 24 2025 25 2026 TAX CAPACITY Base Current 6,816 174,768 6,816 179,767 6,816 179,767 6,816 179,767 6,816 179,767 6,816 179,767 6,816 179,767 6,816 179,767 6,816 179,767 6,816 179,767 6,816 179,767 End of District Projected Actual Total 4,038,225 118,399 120,863 1,003,140 5,390,000 10,670,627 2,393,351 7,524,670 194,250 8,764 Under/(Over)Budget (1,625,617) (118,399) (120,863) (1,003,140) (2,490,000) (5,358,019) 6,649 (4,704,824) 144,2501 167,952 172,951 172,951 172,951 172,951 172,951 172,951 172,951 172,951 172,951 172,951 Revenues Current Local Tax Rate Tax increment Credits Interest Income Transfer In Bands TOTAL REVENUES Increment Bonds Admin Expense County Admin Outside District Returned TOTAL EXPENSE Ending Balance 2,007,019 118,399 115,403 352,114 5,390,000 7,982,935 2,393,351 5,396,345 187,306 4,684 189,515 1171 42,584 232,082 230,700 1,419 1,020 184,169 2 60,893 245,064 245,063 Move county 184,169 2 64,306 248,411 248,475 administration 184,169 2 76,956 261,127 261,125 and other 184,169 2 83,993 268,164 268,163 administrative 184,169 2 100,331 284,502 284,500 expensesto 184,169 2 105,968 290,140 290,138 TIF 7-7 184,169 2 115,993 300,165 300,163 until 2024. 184,169 2 184,171 1,842 1,020 184,169 1,815 185,984 1,842 1,020 184,169 3,646 187,815 1,842 1,020 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota 7,981,686 1,249 233,139 192 245,063 194 248,475 196 261,125 198 268,163 200 284,500 202 290,138 204 300,163 206 2,862 181,515 2,862 364,638 2,862 549,592 August 2017 Page 57 Page 58 TIF 7-5A - Village at Bassett Creek Continued TEST 1: Admin per TIF Plan $150,000 TEST 2: Estimated TIF Admin Allowable (10%) $521,985 Estimated Total TIF Expenses per TIF Plan $5,219,846 TEST 3: Cumulative TIF Admin Allowable (10%) Total TIF Expenses for the Project $992,679 $9,926,785 RESULTS: Admin per TIF Plan $150,000 Actual Admin Expenses $194,250 Available Admin ($44,250) Actual Percentage 1 2.0% Pursuant to M.S. 469.1763 Subd. 2: Year District Type: Housing Does this section apply? Yes Certification Request Date: 11/9/1998 Does TIF Plan Specify Assisting Housing Outside Project Area? No If so, What is the Additional % Allowed in TIF Plan (Up to 10%): 0% Total Pooling %: 100% TIF Year Year Accummulated Admin. Expenses Totals Total %Allowable 2,007,019 14 2015 187,306 7,794,380 2.4% 189,515 15 2016 188,725 8,026,100 2.4% 184,169 16 2017 188,725 8,271,163 2.3% 184,169 17 2018 188,725 8,519,638 2.2% 184,169 18 2019 188,725 8,780,763 2.1% 184,169 19 2020 188,725 9,048,925 2.1% 184,169 20 2021 188,725 9,333,425 2.0% 184,169 21 2022 188,725 9,623,563 2.0% 184,169 22 2023 188,725 9,923,725 1.9% 184,169 23 2024 190,567 9,924,745 1.9% 184,169 24 2025 192,408 9,925,765 1.9% 184,169 25 2026 194,250 9,926,785 2.0% Tax Increment Current Year Cummulative Admin Costs 100% for Affordable Housing Spent Outside Cumulative Available for Pooling Annual Available for Pooling 2,007,019 2,007,019 187,306 1,819,713 189,515 2,196,534 188,725 188,096 184,169 2,380,703 188,725 184,169 184,169 2,564,872 188,725 184,169 184,169 2,749,041 188,725 184,169 184,169 2,933,210 188,725 184,169 184,169 3,117,379 188,725 184,169 184,169 3,301,548 188,725 184,169 184,169 3,485,717 188,725 184,169 - - 184,169 3,669,886 190,567 182,328 181,307 181,307 184,169 3,854,056 192,408 182,327 362,615 181,307 184,169 4,038,225 194,250 182,328 543,922 181,307 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 58 Page 59 TIF 7-6 — Berkshire Description: The Berkshire District (County number 2072) is a Redevelopment District established in 2000 and is located within Municipal Development District No. 7. Originally, the district encompassed three parcels of land and was established to facilitate the renovation of a 240,000 -square foot office/warehouse/production facility. On December 18, 2001, the TIF plan was modified to allow deficit pooling to TIF District 7-5A. In addition, on January 26, 2010, the TIF plan was modified to allow for 10% additional pooling for affordable housing (primarily for the HRA owned Vicksburg Crossing Sr. Housing Facility). On May 1, 2005, the HRA and City entered into an agreement to pledge these funds to the Vicksburg Crossing project if necessary (TIF 1-1). To date, no pooling has been completed for TIF 1-1 or deficit pooling purposes to 7-5A. funds could also be used for improvements to Plymouth Towne Square senior housing facility and would require the City to transfer these funds (similar to Vicksburg Crossing). Adopted ...........................10/ 10/2000 Requested Date ...................06/05/2001 Certified Date ....................06/20/2001 First Increment .......................07/2003 Obligation End Date...............07/31/2018 Decertifies ........................12/31 /2028 Mod #I (deficit pooling) .......... 12/ 18/2001 Mod #2 (10% aff. Hsg.)......... 01/26/2010 Administrative Authority: The City of Plymouth is responsible for this District. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 59 Page 60 TIF 7-6 — Berkshire Continued Parcels: Fiscal Disparities Election: The City elected to calculate fiscal disparities from outside (A election) the district. Original and Current Tax Rate: Original (Pay 2001): 106.110% Current (Pay 2017): 107.550% Allowable Uses: TIF 7-6 — Redevelopment Funds. MN Statute 469.176 sub 4j specifies the activities on which tax increment from a redevelopment district may be spent. In general, tax increment must be spent on correcting those conditions which caused the area to be designated a redevelopment district. Allowable uses include property acquisition, demolition, soils correction, environmental remediation, rehabilitation, installation of public utilities, road, sidewalks, public parking facilities, and allowable administrative expenses. TIF 7-6 — Affordable Housing. Minnesota Statutes, Section 469.1763, subdivision 2(d), allows the City to pool up to an additional 10% above the standard allowable limit for rental housing that meets low-income housing tax credit requirements, but does not have 100% of its credit - eligible costs funded by tax credits. Eligible uses include acquisition and site preparation, construction, rehabilitation and public improvements directly relate to the housing. This provision does not apply if all of the eligible expenses are funded through tax credits. This pooling, pursuant to Minnesota Statutes, Section 469.176 subdivision 4k, can be done without regard to project area/development district limitations. The 10% calculation begins in with the first TIF received after the TIF Plan was modified to allow for this provision (January 26, 2010). W� Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 60 Page 61 TIF 7-6 — Berkshire Continued TIF 7-6 — Deficit Pooling. In 2001, the Minnesota legislature enacted sweeping ad valorem property tax changes, effective for taxes payable in 2002. TIF District 7-5A was the only impacted TIF district that was established prior to the legislative change since it was the only District the City issued bonds for (other two district were PAYGO and had sufficient TIF to repay the obligations). Recognizing the impact of these property tax changes, the legislature enacted Minnesota Statutes, § 469.1763, Subdivision 6, permitting authorities to utilize unencumbered tax increment from one district to pay certain deficits in another district, to the extent the deficits were caused by the legislative action. TIF District 7-6's TIF Plan was administratively modified on January 26, 2010 to allow the City to pool funds to TIF District 7-5A to address deficits caused by the legislative change. Obligations: There are currently two (2) obligations in this District as follows: $900,000 at 8.50% interest. The Note was issued to Continental Property Group on December 18, 2001 and is payable from July 31, 2002 through December 31, 2027. The Note is payable with 73% of the Tax Increment generated from the project. After the 2/1/2017 payment, the current balance is $161,609.66 and the projected final payment is on February 1, 2018. • Pledge of TIF to the 2012A GO Refunding Bonds. These Bonds refinanced the original the HRA's Governmental Housing Project Bonds, Series 2005 which were issued to allow the HRA to construct the 96 -unit Vicksburg Crossing housing project. If revenues from the Project are not sufficient to make payments on the Bonds, the City can utilize TIF from the District to pay any shortfalls. Three Year Rule: The three-year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has caused public improvements to be constructed in the district. The deadline for this District was June 20, 2004 and was met when the they issued the $900,000 Taxable Limited Revenue TIF Note on December 18, 2001. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 61 Page 62 TIF 7-6 — Berkshire Continued Four Year Rule: MN Statute 469.176 sub 6 requires that, within four years from certification date, certain activities must have taken place on each parcel within the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. The State Legislature amended the four- year rule limit to increase it to six years for districts certified after January 1, 2005 and before April 20, 2009. This District does not fit this timeframe and its four-year rule date was June 20, 2005. Five Year Rule: At least 75% of tax increment revenues generated within the District must be used to pay for qualified costs within the District. In 2009, the State Legislature amended the five-year rule limit to increase it to ten (10) years for Redevelopment or Renewal and Renovation districts certified after June 30, 2003 and before April 20, 2009. In 2014, the State Legislature again amended the five-year rule limit for Redevelopment districts to eight (8) years after certification for districts certified after April 20, 2009 and before June 30, 2012. This District does not fall within the aforementioned timeframes and therefore its five-year deadline is June 20, 2006. Geographic Enlargements: MN Statute 469.175 sub 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. This District may not be enlarged after June 20, 2006. Recommendations: 1. Six Year Rule. MN Statute 469.1763 subdivision 4 requires that beginning in year 6 of the district, the City must utilize 75% of the tax increment generated to pay obligations. We recommend annually reviewing this requirement to assure 75% is utilized to pay the TIF Note (estimated to be repaid by July 31, 2018). After that date (2nd half 2018 TIF) the City can only retain 35% of the TIF for affordable housing projects (10% housing and 25% admin) that meet the definition under the Statute through the term of the District, which is December 31, 2028. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 62 Page 63 TIF 7-6 — Berkshire Continued 2. Use of Increment for Deficit Pooling. Currently the 2009 TIF refunding bonds (Interfund Loan) in District 7-5A are outstanding. These bonds are credit enhanced by TIF District 7-6 since revenues are pledged to their repayment. To date the City has not needed to utilize revenues from this District for transfers to District 7-5A for deficit pooling. We recommend monitoring deficits in District 7-5A and to the extent, revenues from that District and District 7-4 are inadequate to make payments on the Interfund Loan, the City should transfer the amount necessary to cover the deficit in the same calendar year as it occurs. 3. Additional 10% TIF for Affordable Housing. On January 26, 2010, the City modified the TIF plan to allow an additional 10% pooling for affordable housing projects. It is estimated that the balance available at the end of 2028 (legal end term of the District) will be approximately $366,699 (authorized amount in TIF Plan was $550,000). If the City chose to decertify the District when the Note is paid off (7/31/18) it is estimated that the balance available at the end of 2018 would be $170,727. This increment may be used to finance improvements to the Plymouth Towne Square facility and the Vicksburg Crossing facility and would require the City to transfer the funds to the HRA (up to the 35% allotted in each TIF plan, net of administrative costs charged to the District). In addition, they can be used to pay credit - eligible costs for tax credit eligible rental projects. Eligible uses include acquisition and site preparation, construction, rehabilitation and public improvements directly related to the housing as long as these costs were not funded through tax credits (does not apply if all eligible expenses are funded through tax credits). The funds can be spent anywhere within the City and do not need to be located within the Project Area. The income and rent guidelines are defined as follows: Rental Housing: 20% of the units occupied by families at 50% of median income (20/50) or 40% of the units occupied by families at 60% of median income (40/60) and rents for all the income -restricted units must not exceed 30% of the applicable income limit 4. Use of Legal Pooling Funds. It is estimated that there will be approximately $621,062 available for legal pooling at the end of 2018 when the Note is paid off. We recommend that the City develop a plan for use of these funds. If no pooling is completed, the balance will have to be returned when the district expires. 5. Use of TIF for 2012A GO Refunding Bonds. Annually review if revenues from the HRA senior project are adequate to pay debt service on the Bonds. If revenues are inadequate, transfer funds as appropriate. 6. Return oflncrement on an Annual Basis. Starting in pay 2019 when the Obligation of the District is paid off, the City will need to annually monitor, calculate and return any increment in excess of the 35% it is retaining for affordable housing purposes (10% housing and 25% admin) and noted in #3 above (estimated to be approximately $198,000). Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 63 Page 64 TIF 7-6 - Berkshire Continued RECOMMENDATIONS ORIGINAL H55 Geo. Enlargement Interest Income District Type Redevelopment Admin Expense 1.00% 2) Budget Mod: Not Recommended at this time Project Area 3) Admin. Expense is currently: 3.6% At or Under Limit Fiscal Disparities A Election County Number 2072 Frozen Rate UTA#1 106.110% 0.000% 0.000% UTA#2 0.000% UTA#3 0.000% Current Year 2016 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 64 Page 65 Decertifies Revenues Expenditures First Receipt CityApproved Cert Request Certified Legal Term Expected Term Tax Increment Other Revenue Interestlncome TOTALREVENUES Project Paygo Admin Expense CountyAdmin Outside District Other Expense TOTAL EXPENSE Total Budget Original Budget 2003 10/10/2000 6/5/2001 6/20/2001 12/31/2028 12/31/2028 1,840,000 - 1,840,000 900,000 430,000 60,000 450,000 1,840,000 1,840,000 Cumulative Modified 1/26/2010 5,200,000 - 300,000 5,500,000 3,150,000 1,800,000 550,000 - - - 5,500,000 5,500,000 End of District Projected Actual Total 2,728,462 - 66,024 5,163,363 - 1,832,849 58,875 5,226 - - 1,949,155 1,896,950 Under/(over)Budget 2,471,538 - 233,976 336,637 3,150,000 (32,849) 491,125 (5,226) - - 3,550,845 3,603,050 CASH FLOW PROJECTIONS r TAX CAPACITY Revenues Expenditures Current Local Increment TIF Year Year Base Current Fiscal Disparities Captured Tax Rate Tax Increment Other Revenue Interest Income TOTAL REVENUES Project Paygo Admin Expense CountyAdmin Outside District Affordable Housing Returned TOTAL EXPENSE Ending Balance 12 2015 - - - - 111.585% 2,084,173 - 48,212 2,132,385 - 1,521,473 54,910 3,628 - - - 1,580,011 552,374 13 2016 82,500 275,790 193,290 109.732% 208,795 4,970 213,765 152,420 1,788 799 155,007 611,132 14 2017 82,500 288,450 - 205,950 107.550% 217,747 6,111 223,858 - 158,955 2,177 799 - - - 161,932 673,058 15 2018 82,500 288,450 - 205,950 107.550% 217,747 6,731 224,477 - 13,871 2,177 799 - - - 16,848 880,688 16 2019 82,500 288,450 - 205,950 107.550% 217,747 8,807 226,554 - - 2,177 799 - - - 2,976 1,104,265 17 2020 82,500 288,450 205,950 107.550% 217,747 11,043 228,789 2,177 799 2,976 1,330,078 18 2021 82,500 288,450 - 205,950 107.550% 217,747 13,301 231,048 - - 2,177 799 - - - 2,976 1,558,149 19 2022 82,500 288,450 - 205,950 107.550% 217,747 15,581 233,328 - - 2,177 799 - - - 2,976 1,788,501 20 2023 82,500 288,450 - 205,950 107.550% 217,747 17,885 235,632 - - 2,177 799 - - - 2,976 2,021,157 21 2024 82,500 288,450 - 205,950 107.550% 217,747 20,212 237,958 - - 2,177 799 - - - 2,976 2,256,139 22 2025 82,500 288,450 - 205,950 107.550% 217,747 22,561 240,308 - - 2,177 799 - - - 2,976 2,493,470 23 2026 82,500 288,450 205,950 107.550% 217,747 24,935 242,682 2,177 799 2,976 2,733,175 24 2027 82,500 288,450 205,950 107.550% 217,747 27,332 245,079 2,177 799 2,976 2,975,277 25 2028 82,500 288,450 - 205,950 107.550% 217,747 29,753 247,500 - - 2,177 799 - - - 2,976 3,219,801 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 64 Page 65 TIF 7-6 - Berkshire Continued TEST 1: Admin per TIF Plan $550,000 TEST 2: Estimated TIF Admin Allowable (10%) $495,000 Estimated Total TIF Expenses perTlF Plan $4,950,000 TEST 3: Cumulative TIF Admin Allowable (10%) $183,807 Total TIF Expenses for the Project $1,838,075 12 2015 RESULTS: Cumulative TIF Admin Allowable (10%) $183,807 Actual Admin Expenses $58,875 Available Admin $124,932 Actual Percentage 3.2% Pursuant to M.S. 469.1763 Subd. 2: District Type: Does this section apply? Certification Request Date: Does TIF Plan Specify Assisting Housing Outside Project Area? If so, What is the Additional %Allowed in TIF Plan (Up to 10%): Total Pooling %: Redevelopment Yes 6/5/2001 Yes 10% 35% %Allowable Tax Increment Current Year Cummulative Admin Costs Accummulated Totals Admin. 1u"/o for Affordable Housing Costs TIF Year Year Expenses Total 12 2015 54,910 1,525,101 13 2016 56,698 1,678,320 14 2017 58,875 1,838,075 15 2018 61,053 1,852,745 16 2019 63,230 1,853,544 17 2020 65,408 1,854,343 18 2021 67,585 1,855,142 19 2022 69,763 1,855,941 20 2023 71,940 1,856,740 21 2024 74,118 1,857,539 22 2025 76,295 1,858,338 23 2026 78,473 1,859,137 24 2027 80,650 1,859,936 25 2028 82,828 1,860,735 Pursuant to M.S. 469.1763 Subd. 2: District Type: Does this section apply? Certification Request Date: Does TIF Plan Specify Assisting Housing Outside Project Area? If so, What is the Additional %Allowed in TIF Plan (Up to 10%): Total Pooling %: Redevelopment Yes 6/5/2001 Yes 10% 35% %Allowable Tax Increment Current Year Cummulative Admin Costs tsi Spent Outside for Qualified for Qualified Redevelopment Redevelopment Cumulative Available for Pooling Annual Available for Pooling 1u"/o for Affordable Housing Costs Spent for Cumulative Affordable Available for Housing Pooling Annual Available for Pooling 3.6% 2,084,173 2,084,173 54,910 466,133 466,133 446,076 106,298 106,298 106,298 3.4% 208,795 2,292,968 56,698 50,411 483,954 37,878 20,880 127,178 20,880 3.2% 217,747 2,510,715 58,875 52,259 524,106 40,152 21,775 148,952 21,775 3.3% 217,747 2,728,462 61,053 52,259 621,062 96,957 21,775 170,727 21,775 3.4% 217,747 2,946,208 63,230 - 621,062 - 19,597 190,324 19,597 3.5% 217,747 3,163,955 65,408 621,062 19,597 209,922 19,597 3.6% 217,747 3,381,702 67,585 621,062 19,597 229,519 19,597 3.8% 217,747 3,599,449 69,763 621,062 19,597 249,116 19,597 3.9% 217,747 3,817,196 71,940 621,062 19,597 268,713 19,597 4.0% 217,747 4,034,943 74,118 621,062 19,597 288,310 19,597 4.1% 217,747 4,252,689 76,295 621,062 19,597 307,908 19,597 4.2% 217,747 4,470,436 78,473 621,062 19,597 327,505 19,597 4.3% 217,747 4,688,183 80,650 621,062 19,597 347,102 19,597 4.5% 217,747 4,905,930 82,828 621,062 19,597 366,699 19,597 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 65 Page 66 TIF 7-6 — Berkshire Continued City of Plymouth Principal Ledger - Continental PAYGO PAYGO Note Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 66 Page 67 $ 900,000.00 12/18/2001 2,724.66 $ 902,724.66 7/31/2002 38,365.80 $ 941,090.46 12/31/2002 39,996.34 $ 981,086.80 7/31/2003 41,696.19 55,712.27 40,669.96 40,669.96 $ 982,113.03 12/31/2003 41,739.80 55,712.27 40,669.96 81,339.92 $ 983,182.87 7/31/2004 41,785.27 68,673.88 50,131.93 131,471.85 $ 974,836.21 12/31/2004 41,430.54 68,673.88 50,131.93 181,603.78 $ 966,134.82 7/31/2005 41,060.73 64,985.70 47,439.56 229,043.34 $ 950,779.82 12/31/2005 40,408.14 64,985.70 47,439.56 276,482.90 $ 935,424.82 7/31/2006 39,755.56 63,411.68 46,290.53 322,773.43 $ 928,889.85 12/31/2006 39,477.82 63,411.68 46,290.53 369,063.95 $ 922,077.14 7/31/2007 39,188.28 67,596.50 49,345.45 418,409.40 $ 911,919.98 12/31/2007 38,756.60 67,596.50 49,345.45 467,754.84 $ 901,331.13 7/31/2008 38,306.57 82,105.00 59,936.65 527,691.49 $ 879,701.06 12/31/2008 37,387.29 82,105.00 59,963.80 587,655.29 $ 857,124.55 7/31/2009 36,427.79 108,110.00 78,920.30 666,575.59 $ 814,632.04 12/31/2009 34,621.86 108,110.00 78,920.45 745,496.04 $ 770,333.46 7/31/2010 32,739.17 92,322.00 67,395.05 812,891.09 $ 735,677.58 12/31/2010 31,266.30 92,322.00 67,395.05 880,286.14 $ 699,548.82 7/31/2011 29,730.83 94,027.00 - 880,286.14 $ 729,279.65 12/31/2011 30,994.39 94,027.00 137,279.07 1,017,565.21 $ 622,994.96 7/31/2012 26,477.29 67,103.00 48,985.27 1,066,550.48 $ 600,486.98 12/31/2012 25,520.70 67,103.00 48,985.26 1,115,535.74 $ 577,022.42 7/31/2013 24,523.45 83,165.50 60,710.85 1,176,246.59 $ 540,835.02 12/31/2013 22,985.49 83,165.50 60,710.85 1,236,957.44 $ 503,109.66 7/31/2014 21,382.16 90,842.50 66,314.76 1,303,272.20 $ 458,177.06 12/31/2014 19,472.53 90,842.50 66,314.76 1,369,586.96 $ 411,334.82 7/31/2015 17,481.73 104,031.50 75,942.87 1,445,529.83 $ 352,873.68 12/31/2015 14,997.13 104,031.50 75,942.87 1,521,472.70 $ 291,927.95 7/31/2016 12,406.94 104,397.50 76,210.18 1,597,682.88 $ 228,124.71 12/31/2016 9,695.30 104,397.50 76,210.18 1,673,893.05 $ 161,609.83 7/31/2017 6,868.42 108,873.41 79,477.59 1,753,370.64 $ 89,000.66 12/31/2017 3,782.53 108,873.41 79,477.59 1,832,848.23 $ 13,305.60 7/31/2018 1 565.49 108,873.41 13,871.09 1,846,719.32 $ (0.00) TOTAL 964.019.07 2.619.588.29 1.846.719.32 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 66 Page 67 TIF 7-7 — Stone Creek Village Description: The Stone Creek Village Housing District (County number 2073) was established in 2002 and is located within Municipal Development District No. 7. On April 18, 2003, the City entered into a Development Agreement with Plymouth Leased Housing Associates LLC. (Dominium) to construct 130 units of rental housing. The Developer is required to maintain a minimum of 34 units for occupancy by persons or families at or below 50% of the area median income through the term of the Agreement. On April 18, 2003, the City issued a $1,159,000 PAYGO TIF Note to the Developer who in turn assigned the Note MMA Mortgage Investment Corporation in December 2005. In addition, on April 1, 2003, the City provided the Developer a 30 -year Loan for $236,000 from its Tax Increment Housing Assistance Program (TIFAP). The loan carries a 2% simple, non -compounding interest rate and is due and payable in full on April 1, 2033. Adopted ............................05/14/2002 Requested Date....................05/31/2002 Certified Date .....................06/06/2002 First Increment ........................07/2003 Obligation End Date ...............02/01/2018 Decertifies .........................12/31 /2028 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 67 Page 68 TIF 7-7 — Stone Creek Village Continued Administrative Authority: The City of Plymouth is responsible for this District. Parcels: Fiscal Disparities Election: The City elected to calculate fiscal disparities from outside (A election) the district. Original and Current Tax Rate: Original (Pay 2002): 109.2460% Current (Pay 2017): 107.550% Allowable Uses: MN Statute 469.176 subd. 4d specifies the activities on which tax increment from a housing district may be spent. In general, tax increment must be spent on housing projects meeting the income guidelines, public improvements directly related to housing projects and administrative expenses. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 68 Page 69 TIF 7-7 — Stone Creek Village Continued Obligations. There are currently two (2) obligations in this District as follows: $236,000 up front 30 -year deferred loan/note at simple, non -compounding 2% interest. The Note was issued on April 1, 2003 to Plymouth Leased Housing Associates, Limited Partnership. The note is payable on April 1, 2033. $1,159,000 at 7.69% interest. The Note was issued on issued on April 18, 2003, to Plymouth Leased Housing Associates and was assigned to MMA Mortgage Investment Corporation in December 2005. The Note is payable from 95% of the increment received from the Project and is payable from August 1, 2005 through February 1, 2018. In no event, shall the total payment amounts on the Note exceed $1,982,682. After the February 1, 2017 payment, the total payments are $1,598,749.40 and the current balance is $832,404.87. It is not expected that revenues will be sufficient to pay this obligation in full. Income Compliance Requirements: Income limitations are required to be monitored on an on-going basis for a Housing District. The City is required to substantiate that the applicable income limitations and rent restrictions are being met on an annual basis. The compliance must be completed regardless of whether the project receives tax credits or not, pursuant to 469.174 sub 11. The property owner has been submitting the required documentation on an annual basis and have continued to meet the requirement that the required 34 units are affordable to persons or families at or below 50% of the area median income. Other Development Agreement Compliance: None Three Year Rule: The three-year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has caused public improvements to be constructed in the district. This deadline for the District was June 6, 2005 and was met when the City issued the TIF Note on April 18, 2003. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 69 Page 70 TIF 7-7 — Stone Creek Village Continued Four Year Rule: MN Statute 469.176 sub 6 requires that, within four years from certification date, certain activities must have taken place on each parcel within the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. The State Legislature amended the four- year rule limit to increase it to six years for districts certified after January 1, 2005 and before April 20, 2009. TIF District 7-7 does not fit this timeline and its four-year rule deadline was June 6, 2006. Five Year Rule: Five-year rule is not applicable to housing districts. Geographic Enlargements: MN Statute 469.175 sub 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. The district may not be enlarged after June 6, 2007. Recommendations: 8. Use of Increment. The Developer is required to maintain affordability until 2038 for the project due to their financing. Since the obligation is paid off in 2018 (second half 2017 TIF), the City will be able to continue to collect eleven (11) more years of TIF for use on affordable housing projects (2018-2028). We recommend the City modify the TIF Plan to increase the budget to avoid generating excess increment and maximize the future TIF available for affordable housing projects. It is estimated that the balance available at the end of 2028 will be approximately $2,162,570. This increment may be used to pay eligible costs for "housing projects" as defined by MS 469.174, Subd. 11, located anywhere within the City limits. A housing project is a rental or owner -occupied housing development intended for occupancy by low and moderate income families. The income guidelines are defined in MS 469.1761 as follows: Rental Housing: 20% of the units occupied by families at 50% of median income (20/50) or 40% of the units occupied by families at 60% of median income (40/60). Management Review & Analysis - Tax Increment Financing Districts August 2017 Plymouth, Minnesota Page 70 Page 71 TIF 7-7 — Stone Creek Village Continued Owner Occupied: Assistance to homeowners with an income at or below 100% of the median income for a family of two or less or 115% of the median income for a family of three or more. Typically, TIF is utilized for capital expenditures, but may be used for non -capital expenditures on a limited basis. Examples of potential rental housing projects would include: 1. New affordable rental housing as part of redevelopment (20/50 or 40/60 election) 2. Renovation of an existing rental housing development (20/50 or 40/60 election) 3. Providing subsidy to an existing project that is earmarked for additional affordability (20/50 or 40/60 election) Examples of potential owner -occupied projects would include: 1. Site acquisition and demolition for infill lots that will be sold for new housing construction 2. Acquisition of foreclosed homes for resale to income qualified buyers 3. Rehabilitation loans for home improvements (including HIA owners) 4. Second mortgages to qualified home buyers In order for the City to continue to utilize these funds for housing projects, the development is required to continue to meet income guidelines and report them annually to the City (25%, or 34 of the units are affordable at 50% of AMI). The City needs to annually monitor the income verification to assure that the existing income requirements are met. If the income requirements are not met on any given year, then the City will need to return that year's increment to the County for redistribution. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 71 Page 72 TIF 7-7 - Stone Creek Village Continued DISTRICT ,• „ ,RECOMMENDATIONS ORIGINAL HSS Geo. Enlargement Interest Income 1.00% 1) Consider pooling options. Get TIF attorney opinion on use of increment for housing after the obligation is finished. District Type Housing Admin Expense 0.50% 2) Budget Mod: Should consider a modification for increment revenue, admin budget and outside uses, depending on above Project Area 3) Admin. Expense is currently: 1.3% At or Under Limit Fiscal Disparities A Election County Number 2073 Frozen Rate UTA #1 109.246% 0.000% 0.000% UTA k2 0.000% UTA k3 0.000% Current Year 2016 Management Review & Analysis - Tax Increment Financing Districts 0 Plymouth, Minnesota August 2017 Page 72 Page 73 First Receipt City Approved CertRequest Certified Legal Term Expected Term Tax Increment Interestlncome Other Revenue TOTALREVENUES Project Paygo Admin Expense County Admin Outside District Other Expense TOTAL EXPENSE Total Budget Original Budget 2003 5/14/2002 5/31/2002 6/6/2002 12/31/2028 12/31/2028 2,087,000 - - 2,087,000 993,600 1,121,300 104,400 - - - 2,219,300 2,219,300 Cumulative Modified - - - - - - - - - - - - End of District Projected Actual Total 4,000,476 126,671 - 4,127,146 1,782,347 44,711 20,657 - 1,847,715 1,847,715 Under/(Over)Budget (1,913,476) (126,671) - (2,040,146) 993,600 (661,047) 59,689 )20,657) - - 371,585 371,585 TAX CAPACITY Revenues Expenditures Current Local Increment TIF Year Year Base Current Fiscal Disparities Captured Tax Rate Tax Increment Interest Income Other Revenue TOTAL REVENUES Project Paygo Admin Expense County Admin Affordable Hsg Returned TOTAL EXPENSE Ending Balance 12 2015 - - - - 111.585% 1,496,912 9,810 1,506,722 - 1,423,535 19,469 3,455 - - 1,446,459 60,263 13 2016 3,313 171,996 - 168,683 109.732% 184,436 381 184,817 - 175,214 755 774 - - 176,743 68,337 14 2017 3,313 183,656 - 180,343 107.550% 193,261 683 193,944 - 183,598 2,808 1,794 - - 188,200 74,081 15 2018 3,313 183,656 - 180,343 107.550% 193,261 741 194,001 - Will keep 2,808 1,794 - - 4,602 263,480 16 2019 3,313 183,656 - 180,343 107.550% 193,261 2,635 195,895 - district open 2,808 1,794 - - 4,602 454,774 17 2020 3,313 183,656 - 180,343 107.550% 193,261 4,548 197,808 - after PAYGO, 2,808 1,794 - - 4,602 647,980 18 2021 3,313 183,656 - 180,343 107.550% 193,261 6,480 199,740 - assuming 2,808 1,794 - - 4,602 843,119 19 2022 3,313 183,656 - 180,343 107.550% 193,261 8,431 101,692 - developer is 2,808 1,794 - - 4,602 1,040,209 20 2023 3,313 183,656 - 180,343 107.550% 193,261 10,402 203,663 - willing to keep 2,808 1,794 - - 4,502 1,239,269 21 2024 3,313 183,656 - 180,343 107.550% 193,261 12,393 205,653 - original project 966 774 - - 1,740 1,443,182 22 2025 3,313 183,656 - 180,343 107.550% 193,261 14,432 207,692 - affordable. 966 774 - - 1,740 1,649,135 23 2026 3,313 183,656 - 180,343 107.550% 193,261 16,491 209,752 - - 966 774 - - 1,740 1,857,146 24 2027 3,313 183,656 - 180,343 107.550% 193,261 18,571 211,832 - - 966 774 - - 1,740 2,067,238 25 2028 3,313 183,656 - 180,343 107.550% 193,261 20,672 213,933 - - 966 774 - - 1,740 2,279,431 Management Review & Analysis - Tax Increment Financing Districts 0 Plymouth, Minnesota August 2017 Page 72 Page 73 TIF 7-7 - Stone Creek Village Continued TEST 1: Admin per TIF Plan 104,400 TEST 2: Estimated TIF Admin Allowable (10%) $208,700 Estimated Total TIF Revenues per TIF Plan $2,087,000 TEST 3: Cumulative TIF Admin Allowable (10%) Total TIF Revenues for the Project $412,715 $4,127,146 RESULTS: Admin per TIF Plan $104,400 Actual Admin Expenses 44,711 Available Admin $59,689 Actual Percentage 1.1% Pursuant to M.S. 469.1763 Subd. 2: District Type: Housing Does this section apply? Yes Certification Request Date: 5/31/2002 Does TIF Plan Specify Assisting Housing Outside Project Area? No If so, What is the Additional % Allowed in TIF Plan (Up to 10%): 0% Total Pooling %: 100% Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 73 Page 74 Accummulated Totals Tax Increment 100% for Cumulative Affordable Available for Annual Available TIF Year Year Admin. Expenses Total %Allowable Current Year Cummulative Admin Costs Housing Spent Outside Pooling for Pooling 12 2015 19,469 1,506,722 1.3% 1,496,912 1,496,912 19,469 1,477,443 60,263 60,263 13 2016 20,224 1,691,539 1.2% 184,436 1,681,348 20,224 183,681 67,956 7,693 14 2017 23,032 1,885,483 1.2% 193,261 1,874,609 23,032 190,453 73,017 5,061 15 2018 25,840 2,079,484 1.2% 193,261 2,067,869 25,840 190,452 261,675 188,659 16 2019 28,648 2,275,380 1.3% 193,261 2,261,130 28,648 190,453 450,334 188,659 17 2020 31,456 2,473,188 1.3% 193,261 2,454,391 31,456 190,453 638,993 188,659 18 2021 34,264 2,672,929 1.3% 193,261 2,647,651 34,264 190,452 827,651 188,659 19 2022 37,072 2,874,621 1.3% 193,261 2,840,912 37,072 190,453 1,016,310 188,659 20 2023 39,880 3,078,283 1.3% 193,261 3,034,173 39,880 190,453 1,204,969 188,659 21 2024 40,846 3,283,937 1.2% 193,261 3,227,433 40,846 192,294 1,396,489 191,520 22 2025 41,813 3,491,629 1.2% 193,261 3,420,694 41,813 192,294 1,588,009 191,520 23 2026 42,779 3,701,381 1.2% 193,261 3,613,954 42,779 192,295 1,779,530 191,520 24 2027 43,745 3,913,213 1.1% 193,261 3,807,215 43,745 192,294 1,971,050 191,520 25 2028 44,711 4,127,146 1.1% 193,261 4,000,476 44,711 192,294 2,162,570 191,520 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 73 Page 74 TIF 7-7 — Stone Creek Village Continued City of Plymouth Principal Ledger - Stone Creek Village MMA Mortgage Corporation PAYGO Note Maximum amount Note Issue D. Final Payment Date $ 1,159,000 i I -Feb -18 Interest Due Total Tax Increment Tax Increment Available at Total Interest Rate Payments Note 7.69% Balance Available 00 4/18/2003 - $ 1,159,000.00 8/1/2003 25,639.30 $ 1,184,639.30 2/1/2004 45,549.38 $ 1,230,188.68 8/1/2004 47,300.75 $ 1,277,489.4 2/1/2005 49,119.47 $ 1, , 8.91 8/1/2005 51,008.11 33,616.74 31,935.91 31,935.91 1,345,681.11 2/1/2006 51,741.44 30,350.42 28,832.90 6 .81 $ 1,368,589.65 8/1/2006 52,622.27 66,185.34 62,876.08 4 123,644.89 $ 1,358,335.85 2/1/2007 52,228.01 63,635.00 60,009.99 183,654.88 $ 1,350,553.86 8/1/2007 51,928.80 63,635.00 60,009.99 243,664.87 $ 1,342,472.67 2/1/2008 51,618.07 63,635.00 60,453.63 304,118.50 $ 1,333,637.11 8/1/2008 51,278.35 63,635.00 72,879.73 376,998.23 $ 1,312,035.73 2/1/2009 50,447.77 73,529.50 72,879.73 449,877.96 $ 1,289,603.77 8/1/2009 49,585.27 73,529.50 69,853.26 519,731.22 $ 1,269,335.78 2/1/2010 48,805.96 73,375.50 69,853.25 589,584.47 $ 1,248,288.49 8/1/2010 47,996.69 73,375.50 69,706.59 659,291.06 $ 1,226,578.59 2/1/2011 47,161.95 62,493.50 69,706.59 728,997.65 $ 1,204,033.95 8/1/2011 46,295.11 62,493.50 59,368.73 788,366.38 $ 1,190,960.32 2/1/2012 45,792.42 66,577.92 59,368.73 847,735.11 $ 1,177,384.02 8/1/2012 45,270.42 66,577.92 63,248.84 910,983.95 $ 1,159,405.59 2/1/2013 44,579.14 66,577.92 63,248.85 974,232.80 $ 1,140,735.89 8/1/2013 43,861.29 66,577.92 70,227.18 1,044,459.98 $ 1,114,370.00 2/1/2014 42,847.53 77,534.00 70,227.18 1,114,687.16 $ 1,086,990.35 8/1/2014 41,794.78 77,533.50 73,656.83 1,188,343.99 $ 1,055,128.30 2/1/2015 40,569.68 77,533.50 73,656.83 1,262,000.81 $ 1,022,041.16 8/1/2015 39,297.48 85,018.00 80,767.10 1,342,767.91 $ 980,571.54 2/1/2016 37,702.98 85,018.00 80,767.10 1,423,535.01 $ 937,507.42 8/1/2016 36,047.16 92,218.10 87,607.20 1,511,142.21 $ 885,947.38 2/1/2017 34,064.68 92,218.10 87,607.20 1,598,749.40 $ 832,404.87 8/1/2017 32,005.97 96,630.32 91,798.81 1,690,548.21 $ 772,612.03 2/1/2018 1 29,706.93 96,630.32 91,798.81 1,782,347.02 $ 710,520.15 TOTAL 1 1,874,643.60 1,850,135.04 1,782,347.02 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 74 Page 75 TIF 7-8 — Quest Development Description. TIF District 7-8 is a Redevelopment District (County number 2077) established in 2011 and is located within Municipal Development District No. 7. On May 2, 2015, the City entered into a Development Agreement with 169/55 LLC to construct 157 -units of rental housing, of which 16 units were to be affordable to persons at or below 50% of the area median income (AMI). Adopted ............................04/ 12/2011 Requested Date ....................06/22/2011 Certified Date .....................06/28/2011 First Increment ........................07/2015 Obligation End Date ..............08/01/2031 Decertifies .........................12/31 /2044 Administrative Authority: The City of Plymouth is responsible for this District. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota . .,V L�' in August 2017 Page 75 Page 76 TIF 7-8 — Quest Development Continued Parcels: Fiscal Disparities Election: The City elected to calculate fiscal disparities from inside (B election) the District. Original and Current Tax Rate: Original (Pay 2011): 109.623% Current (Pay 2017): 106.871% Allowable Uses: MN Statute 469.176 sub 4j specifies the activities on which tax increment from a redevelopment district may be spent. In general, tax increment must be spent on correcting those conditions which caused the area to be designated a redevelopment district. Allowable uses include property acquisition, demolition, soils correction, environmental remediation, rehabilitation, installation of public utilities, road, sidewalks, public parking facilities, and allowable administrative expenses. Obligations: There is currently one PAYGO Note in this district as follows: • $2,500,000 at 5.00% interest. The Note was issued on issued on August 19, 2015, to 169/55 LLC and was assigned to TCF National Bank on August 19, 2015. The Note is payable from 90% of the increment generated from the Project and is payable from August 1, 2017 through February 1, 2040 (anticipated to be paid off on August 1, 2031). Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 76 Page 77 TIF 7-8 — Quest Development Continued Other Development Agreement Compliance: 1. Minimum Assessment Agreement. The minimum market value as of January 2, 2017 shall be $20,000,000. The Assessment Agreement shall be in place until the TIF Note is paid in full or the TIF District terminates, whichever is sooner. 2. Reduction in Market Value. The Developer will not seek a reduction in Market Value for tax collection in years 2035 through 2039, notwithstanding #1 above. In the event that the market value is reduced and the City has to make a payment to the County for tax collection in years 2018 through 2034, the Developers TIF payment will be reduced by this amount or if the TIF Note is paid off, the Developer shall pay the City the amount due within 30 days of written notice. 3. Affordability. The project shall contain 16 units and be affordable to persons or families at or below 60% of the area median income (both rents and incomes). No more than two (2) units will be efficiency units and at least eight (8) units will have two (2) to three (3) bedrooms. The Developer is required to submit annual reports regarding meeting the affordability requirements by January 31St, through the term of the Agreement. 4. Look Back and Reduction of TIF Assistance. If the site improvements are less than $1,000,000, the TIF assistance shall be reduced on a dollar for dollar basis. If project costs of (excluding site improvements) is less than anticipated, the TIF Note will be reduced by 50% of the excess of the aggregate project costs of $30,151,226 (Exhibit F) over the actual project costs incurred as calculated at the time of completion of construction. This requirement was satisfied on December 1, 2016. 5. Sale or Refinance. If the Developer sells the project to an unrelated third party or refinances the project during the first 7.5 years of the term of the agreement (November 2, 2022), then an Internal Rate of Return (IRR) calculation needs to be completed. To the extent the modified IRR exceeds 15% annually during that period of up to 7.5 years, then 50% of the excess amount of such average profit over the annual 15% modified IRR will be applied to reduce the principal amount of the TIF Note. Any subordinate debt secured by collateral owned by direct or indirect owners of the project and the deferred development fee of $850,000 shall be characterized as equity for purposes of calculating the modified IRR. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 77 Page 78 TIF 7-8 — Quest Development Continued Four Year Rule: MN Statute 469.176 sub 6 requires that, within four years from certification date, certain activities must have taken place on each parcel within the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. The State Legislature amended the four- year rule limit to increase it to six years for districts certified after January 1, 2005 and before April 20, 2009. TIF District 7-8 does not fit this timeline and its four-year rule will be June 28, 2015. Five Year Rule: At least 75% of tax increment revenues generated within the District must be used to pay for qualified costs within the District. In 2009, the State Legislature amended the five-year rule limit to increase it to ten (10) years for Redevelopment or Renewal and Renovation districts certified after June 30, 2003 and before April 20, 2009. In 2014, the State Legislature again amended the five-year rule limit for Redevelopment districts to eight (8) years after certification for districts certified after April 20, 2009 and before June 30, 2012. The five-year deadline (8 -year deadline) for this District is June 28, 2019. Geographic Enlargements: MN Statute 469.175 sub 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. The district may not be enlarged after June 28, 2016. Recommendations: None at this time. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 78 Page 79 TIF 7-8 - Quest Development Continued DISTRICT INFORMATION ORIGINAL N55 Geo. Enlargement Interest Income 1.00% 1) District may need to be decertified early Di strict Type Redevelopment Admin Expense 2.00% 2) Budget Mod: May need an admin mod for administrative expenses. Does not appear to require afull mod if district is decertified early Project Area 3) Admin. Expense is currently: for year 2016 156.1% Over Limit Fiscal Of BElection 4) Discuss requirements for section 4J County Number 2077 Frozen Rate UTA41 109.623% 0.000% 0.000% UTA 42 0.000% UTA 43 0.000% Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 79 Page 80 Fi st _---------- .._-_..___ Receipt CityApproved Cert Request Certified Legal Term Expected Term Tax Increment Interest Income Other Revenue TOTAL REVENUES Project Paygo Interfund Loan Admin Expense CountyAdmin Outside District Other Expense TOTALEXPENSE Total Budget Original Budget 2015 4/12/2011 6/22/2011 6/28/2011 12/31/2040 12/31/2040 6,302,868 100,000 - 6,402,868 2,500,000 3,272,581 630,287 - - - 6,402,868 6,402,868 Cumulative Modified End of District Projected Actual Total 2,688,042 36,680 2,724,722 2,365,966 360 58,654 14,965 1,922,766 2,439,944 Under/(Over)Budget 3,614,826 63,320 3,678,146 2,500,000 906,615 (360) 571,633 (14,965) - 4,480,102 3,962,924 TAX CAPACITY CASH W PROJECTIONS Revenues a ROLL UP Expenditures Current Local Increment TIF Year Year Base Current Fiscal Disparities Captured Tax Rate Tax Increment Interest Income Other Revenue TOTAL REVENUES Project Paygo Interfund loan Admin Expense CountyAdmin Outside District Returned TOTALEXPENSE Ending Balance 0 2015 24,148 26,508 905 1,455 115.673% 1,604 (74) 1,530 - - 110 4,229 1,993 - - 6,332 (4,802) 1 2016 24,148 26,510 854 1,508 112.140% 1,653 (6) 1,647 - - 125 729 519 - - 1,373 (4,528) 2 2017 24,148 129,200 - 105,052 106.871% 111,868 (45) 111,823 - 50,341 125 2,237 519 - - 53,222 54,073 3 2018 24,148 129,200 - 105,052 106.871% 111,866 541 112AO7 - 100,679 - 2,237 519 - - 303,436 63,044 4 2019 24,148 129,200 - 105,052 106.871% 111,866 630 112,496 - 100,679 - 2,237 519 - - 103,436 72,105 5 2020 24,148 129,200 - 105,052 106.871% 111,866 721 112,587 - 100,679 - 2,237 519 - - 103,436 81,256 6 2021 24,148 129,200 - 105,052 106.871% 111,866 813 112,679 - 100,679 - 2,237 519 - - 103,436 90,499 7 2022 24,148 129,200 - 105,052 106.871% 111,866 905 112,771 - 100,679 - 2,237 519 - - 1O3,436 99,835 8 2023 24,148 129,200 - 105,052 106.871% 111,866 998 112,864 - 100,679 - 2,237 519 - - 1O3,436 109,263 9 2024 24,148 129,200 - 105,052 106.871% 111,866 1,093 112,959 - 100,679 - 2,237 519 - - 1O3,436 118,787 10 2025 24,148 129,200 - 105,052 106.871% 111,866 1,188 113,054 - 100,679 - 2,237 519 - - 1O3,436 128,405 11 2026 24,148 129,200 - 105,052 106.871% 111,866 1,284 113,150 - 100,679 - 2,237 519 - - 1O3,436 138,119 12 2027 24,148 129,200 - 105,052 106.871% 111,866 1,381 113,247 - 100,679 - 2,237 519 - - 1O3,436 147,931 13 2028 24,148 129,200 - 105,052 106.871% 111,866 1,479 113,345 - 100,679 - 2,237 519 - - 103,436 157,841 14 2029 24,148 129,200 - 105,052 106.871% 111,866 1,578 113,444 - 100,679 - 2,237 519 - - 103,436 167,849 15 2030 24,148 129,200 - 105,052 106.871% 111,866 1,678 113,544 - 100,679 - 2,237 519 - - 103,436 177,958 16 2031 24,148 129,200 - 105,052 106.871% 111,866 1,780 113,646 - 100,679 - 2,237 519 - - 103,436 188,168 17 2032 24,148 129,200 - 105,052 106.871% 111,866 1,882 113,748 - 100,679 - 2,237 519 - - 103,436 198,480 18 2033 24,148 129,200 - 105,052 106.871% 111,866 1,985 113,851 - 100,679 - 2,237 519 - - 103,436 208,896 19 2034 24,148 129,200 - 105,052 106.871% 111,866 2,089 113,955 - 100,679 - 2,237 519 - - 103,436 219,415 20 2035 24,148 129,200 - 105,052 106.871% 111,866 2,194 114,060 - 100,679 - 2,237 519 - - 103,436 230,039 21 2036 24,148 129,200 - 105,052 106.871% 111,866 2,300 114,166 - 100,679 - 2,237 519 - - 103,436 240,770 22 2037 24,148 129,200 - 105,052 106.871% 111,866 2,408 114,274 - 100,679 - 2,237 519 - - 103,436 251,608 23 2038 24,148 129,200 - 105,052 106.871% 111,866 2,516 114,382 - 100,679 - 2,237 519 - - 1O3,436 262,555 24 2039 24,148 129,200 - 105,052 106.871% 111,866 2,626 314,491 - 100,679 - 2,237 519 - - 1O3,436 273,611 25 2040 24,148 129,200 105,052 106.871% 111,866 2,736 114,602 100,679 2,237 519 1O3,436 284,777 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 79 Page 80 TIF 7-8 - Quest Development Continued Pursuant to M.S. 469.1763 Subd. 2: District Type: Does this section apply? Certification Request Date: Does TIF Plan Specify Assisting Housing Outside Project Area? If so, What is the Additional %Allowed in TIF Plan (Up to 10%): Total Pooling %: Redevelopment Yes 6/22/2011 No 0% 25% TEST 1: Admin per TIF Plan 630,287 TEST 2: Estimated TIF Admin Allowable (10%) $630,287 Estimated Total TIF Revenues per TIF Plan $6,302,868 TEST3: Cumulative TIF Admin Allowable (10%) $268,804 Total TIF Revenues for the Project $2,688,042 RESULTS: Cumulative TIF Admin Allowable (10%) $268,804 Actual Admin Expenses 58,654 Available Admin $210,150 Admin. Expenses Actual Percentage 2.2% Pursuant to M.S. 469.1763 Subd. 2: District Type: Does this section apply? Certification Request Date: Does TIF Plan Specify Assisting Housing Outside Project Area? If so, What is the Additional %Allowed in TIF Plan (Up to 10%): Total Pooling %: Redevelopment Yes 6/22/2011 No 0% 25% Page 81 Accummulated Totals Tax Increment Available for TIF Year Year Admin. Expenses Total %Allowable Current Year Cummulative Admin Costs 25% for Qualified Costs Spent Outside Cumulative Pooling 0 2015 4,229 1,530 276.4% 1,604 1,604 4,229 (3,828) - (3,828) (4,802) 1 2016 4,958 3,177 156.1% 1,653 3,257 4,958 (316) - (4,144) (4,528) 2 2017 7,195 115,000 6.3% 111,868 115,125 7,195 25,730 - 21,586 21,586 3 2018 9,433 227,406 4.1% 111,866 226,991 9,433 25,729 - 47,315 47,315 4 2019 11,670 339,903 3.4% 111,866 338,857 11,670 25,729 - 73,044 72,105 5 2020 13,907 452,490 3.1% 111,866 450,723 13,907 25,729 - 98,773 81,256 6 2021 16,145 565,168 2.9% 111,866 562,589 16,145 25,730 - 124,503 90,499 7 2022 18,382 677,939 2.7% 111,866 674,455 18,382 25,729 - 150,232 99,835 8 2023 20,619 790,803 2.6% 111,866 786,321 20,619 25,729 - 175,961 109,263 9 2024 22,857 903,762 2.5% 111,866 898,186 22,857 25,729 - 201,690 118,787 10 2025 25,094 1,016,816 2.5% 111,866 1,010,052 25,094 25,729 - 227,419 128,405 11 2026 27,331 1,129,966 2.4% 111,866 1,121,918 27,331 25,729 - 253,148 138,119 12 2027 29,569 1,243,213 2.4% 111,866 1,233,784 29,569 25,730 - 278,878 147,931 13 2028 31,806 1,356,558 2.3% 111,866 1,345,650 31,806 25,729 - 304,607 157,841 14 2029 34,043 1,470,003 2.3% 111,866 1,457,516 34,043 25,729 - 330,336 167,849 15 2030 36,281 1,583,547 2.3% 111,866 1,569,382 36,281 25,729 - 356,065 177,958 16 2031 38,518 1,697,193 2.3% 111,866 1,681,248 38,518 25,729 - 381,794 188,168 17 2032 40,755 1,810,940 2.3% 111,866 1,793,114 40,755 25,729 - 407,523 198,480 18 2033 42,992 1,924,791 2.2% 111,866 1,904,980 42,992 25,730 - 433,253 208,896 19 2034 45,230 2,038,746 2.2% 111,866 2,016,846 45,230 25,729 - 458,982 219,415 20 2035 47,467 2,152,806 2.2% 111,866 2,128,712 47,467 25,729 - 484,711 230,039 21 2036 49,704 2,266,972 2.2% 111,866 2,240,578 49,704 25,729 - 510,440 240,770 22 2037 51,942 2,381,246 2.2% 111,866 2,352,444 51,942 25,729 - 536,169 251,608 23 2038 54,179 2,495,628 2.2% 111,866 2,464,310 54,179 25,729 - 561,898 262,555 24 2039 56,416 2,610,119 2.2% 111,866 2,576,176 56,416 25,730 - 587,628 273,611 25 2040 58,654 2,724,722 2.2% 111,866 2,688,042 58,654 25,729 613,357 284,777 Management Review & Analysis - Tax Increment Financing Districts August 2017 Plymouth, Minnesota Page 80 Page 81 TIF 7-8 — Quest Development Continued City of Plymouth Principal Ledger - 169/55, LLC TCF PAYGO Note 1/11/2017 - - $ 2,500,000.00 8/1/2017 69,444.44 19,103.92 55,933.92 50,340.53 50,340.53 - 50,340.53 $ 2,500,000.00 2/1/2018 62,500.00 31,263.39 55,933.92 50,340.53 100,681.06 50,340.53 $ 2,500,000.00 8/1/2018 62,500.00 (50,367.30) 145,601.07 131,040.96 231,722.01 18,173.65 62,500.00 $ 2,481,826.35 2/1/2019 62,045.66 145,601.07 131,040.96 362,762.97 68,995.30 62,045.66 $ 2,412,831.05 8/1/2019 60,320.78 145,601.07 131,040.96 493,803.93 70,720.18 60,320.78 $ 2,342,110.86 2/1/2020 58,552.77 145,601.07 131,040.96 624,844.89 72,488.19 58,552.77 $ 2,269,622.68 8/1/2020 56,740.57 145,601.07 131,040.96 755,885.85 74,300.39 56,740.57 $ 2,195,322.28 2/1/2021 54,883.06 145,601.07 131,040.96 886,926.81 76,157.90 54,883.06 $ 2,119,164.38 8/1/2021 52,979.11 145,601.07 131,040.96 1,017,967.77 78,061.85 52,979.11 $ 2,041,102.53 2/1/2022 51,027.56 145,601.07 131,040.96 1,149,008.73 80,013.40 51,027.56 $ 1,961,089.14 8/1/2022 49,027.23 145,601.07 131,040.96 1,280,049.68 82,013.73 49,027.23 $ 1,879,075.41 2/1/2023 46,976.89 145,601.07 131,040.96 1,411,090.64 84,064.07 46,976.89 $ 1,795,011.33 8/1/2023 44,875.28 145,601.07 131,040.96 1,542,131.60 86,165.68 44,875.28 $ 1,708,845.66 2/1/2024 42,721.14 145,601.07 131,040.96 1,673,172.56 88,319.82 42,721.14 $ 1,620,525.84 8/1/2024 40,513.15 145,601.07 131,040.96 1,804,213.52 90,527.81 40,513.15 $ 1,529,998.03 2/1/2025 38,249.95 145,601.07 131,040.96 1,935,254.48 92,791.01 38,249.95 $ 1,437,207.02 8/1/2025 35,930.18 145,601.07 131,040.96 2,066,295.44 95,110.78 35,930.18 $ 1,342,096.24 2/1/2026 33,552.41 145,601.07 131,040.96 2,197,336.40 97,488.55 33,552.41 $ 1,244,607.69 8/1/2026 31,115.19 145,601.07 131,040.96 2,328,377.35 99,925.77 31,115.19 $ 1,144,681.92 2/1/2027 28,617.05 145,601.07 131,040.96 2,459,418.31 102,423.91 28,617.05 $ 1,042,258.01 8/1/2027 26,056.45 145,601.07 131,040.96 2,590,459.27 104,984.51 26,056.45 $ 937,273.50 2/1/2028 23,431.84 145,601.07 131,040.96 2,721,500.23 107,609.12 23,431.84 $ 829,664.38 8/1/2028 20,741.61 145,601.07 131,040.96 2,852,541.19 110,299.35 20,741.61 $ 719,365.03 2/1/2029 17,984.13 145,601.07 131,040.96 2,983,582.15 113,056.83 17,984.13 $ 606,308.20 8/1/2029 15,157.70 145,601.07 131,040.96 3,114,623.11 115,883.25 15,157.70 $ 490,424.94 2/1/2030 12,260.62 145,601.07 131,040.96 3,245,664.07 118,780.34 12,260.62 $ 371,644.61 8/1/2030 9,291.12 145,601.07 131,040.96 3,376,705.02 121,749.84 9,291.12 $ 249,894.76 2/1/2031 6,247.37 145,601.07 131,040.96 3,507,745.98 124,793.59 6,247.37 $ 125,101.17 8/1/2031 3,127.53 145,601.07 128,228.70 3,635,974.68 125,101.17 3,127.53 $ 0.00 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 81 Page 82 TIF 7-9 — Agora Description: TIF District 7-9 is a redevelopment district that was adopted on January 24, 2017 and is located within Municipal Development District No. 7. The District encompasses three (3) parcels of land (former Four Seasons Mall and City Storm Water Pond) and was established to facilitate the redevelopment of the properties into approximately 139 senior apartments, two hotels (Aloft — 95 units and Town Place Suites - 100 units, with event space), approximately 19,680 sq/ft of office, 61,426 sq/ft of retail and a 3 -story municipal parking ramp consisting of approximately 339 stalls to accommodate the City's transit parking needs. On January 24, the City approved a development Agreement with Rock Hill Management LLC. for the development. The City is required to issue the Developer a $4,500,000 PAYGO TIF Note at 4% interest, to reimburse them for qualified redevelopment costs, euf ¢ nury PaAJnB�M1eilul .a...arA. � 1 = � '� na.w consisting mostly of extraordinary costs related to soils correction and structural elements related to poor soils. To date the TIF Note has not been issued. Adopted ...........................01 /24/2017 Requested Date ...................06/29/2017 Certified Date ....................06/30/2017 First Increment .....................Est. 2019 Obligation End Date..............12/31/2033 Decertifies ........................12/31 /2044 Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 82 Page 83 TIF 7-9 — Agora Continued Administrative Authority: The City of Plymouth is responsible for this District. Parcels: Fiscal Disparities Election: The City elected to calculate fiscal disparities from inside (B election) the District. Original and Current Tax Rate: Original (Pay 2017): 112.7350% Current (Pay 2017): 112.7350% Allowable Uses: MN Statute 469.176 sub 4j specifies the activities on which tax increment from a redevelopment district may be spent. In general, tax increment must be spent on correcting those conditions which caused the area to be designated a redevelopment district. Allowable uses include property acquisition, demolition, soils correction, environmental remediation, rehabilitation, installation of public utilities, road, sidewalks, public parking facilities, and allowable administrative expenses. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 83 Page 84 TIF 7-9 — Agora Continued Obligations. It is anticipated that there will be one PAYGO Note in this district as follows: $4,500,000 at 4.00% interest. To date the Note has not been issued. The Note is payable from 90% of the increment generated from the Project and is payable from August 1, 2019 through February 1, 2034. Other Development Agreement Compliance: 1. Senior Housing. Lancaster Lane Senior Housing LLC shall construct the project by December 31,2019 and not seek tax exemption for all or part of the project. 2. Hotels. Prior to issuance of the TIF Note, the Developer must provide copies of the Franchise agreements for the hotels. In addition, the lessee of the Hotel property must construct the hotels by December 31,2 018. Business Subsidy Act. The Developer agrees to continue operations within the City for at least five (5) years after completion of the project and will provide the City with requested information to satisfy the annual reporting requirements to DEED. 4. Minimum Assessment Awreement. The minimum market value for the commercial and office potion of the development shall be $12,882,000 as of January 2, 2018. The Assessment Agreement shall be in place until the earlier of February 1, 2034, TIF Note is paid in full or the TIF District terminates. The Developer shall notify the City of any administrative or judicial review to reduce the market value. 5. Reduction in Market Value. The Developer will not seek a reduction in Market Value for tax collection in years 2029 through 2033, notwithstanding #3 above. In the event that the market value is reduced and the City has to make a payment to the County for tax collection in years 2019 through 2028, the Developers TIF payment will be reduced by this amount or if the TIF Note is paid off, the Developer shall pay the City the amount due within 30 days of written notice. 6. Parkinz Ramp, The Developer shall submit plans to the City for approval and comply with competitive bidding requirements and payment and performance bond requirements to construct the ramp. Any modifications of the plans and specifications and change orders shall be submitted to the City for approval. If the ramp is comprised of less than 339 -stalls, the Developer shall provide surface parking for the number of stalls not constructed. The Developer shall enter into an Operating and Maintenance Agreement and a Special Assessment Agreement with the City for a term of 50 years. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 84 Page 85 TIF 7-9 — Agora Continued 7. Look Back and Reduction of TIF Assistance. If the site improvements are less than $5,113,184, the TIF assistance shall be reduced on a dollar for dollar basis. If project costs of (excluding site improvements) is less than anticipated, the TIF Note will be reduced by 50% of the excess of the aggregate project costs of $41,936,969 (Exhibit F) over the actual project costs incurred as calculated at the time of completion of construction. 8. Sale or Refinance. If the Developer sells the project to an unrelated third party or refinances the project during the first ten (10) years of the term of the agreement (January 1, 2027), then a cash -on -cash (COC) return needs to be completed. To the extent the average actual project COC exceeds 8% annually during that period of up to 10 years, then 50% of the excess amount of such average profit over the 8% COC will be applied to reduce the principal amount of the TIF Note. Any subordinate debt secured by collateral owned by direct or indirect owners of the project and the deferred development fee of $850,000 shall be characterized as equity for purposes of calculating the modified IRR. Four Year Rule: MN Statute 469.176 sub 6 requires that, within four years from certification date, certain activities must have taken place on each parcel within the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. The State Legislature amended the four- year rule limit to increase it to six years for districts certified after January 1, 2005 and before April 20, 2009. TIF District 7-9 does not fit this timeline and its four-year rule will be a date in 2022 (unknown since the district has not yet been certified by the County). Five Year Rule: At least 75% of tax increment revenues generated within the District must be used to pay for qualified costs within the District. In 2009, the State Legislature amended the five-year rule limit to increase it to ten (10) years for Redevelopment or Renewal and Renovation districts certified after June 30, 2003 and before April 20, 2009. In 2014, the State Legislature again amended the five-year rule limit for Redevelopment districts to eight (8) years after certification for districts certified after April 20, 2009 and before June 30, 2012. TIF District 7-9 does not fit these timelines and its five-year rule will sometime in 2022. Geographic Enlargements: MN Statute 469.175 sub 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. The district may not be enlarged after a date yet to be determined in 2022. Recommendations: None at this Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 85 Page 86 Appendix of Terms Redevelopment Project Area No. 1 - A geographic area in the City that includes all but the northwestern corner of the City. The Project Area plan was adopted in 2004 and subsequently modified as districts were adopted or modified. It is the area in which TIF districts may be established and in which increment may be spent, subject to limitations. This Project Area was established by the Housing and Redevelopment Authority of the City of Plymouth and the HRA administers the districts within this area. The TIF Districts includes in this area are TIF 1-1, 1-2 and 1-3. Municipal Development District No. 7 — This project area includes all but the northwestern edge of the City. It was established in 1995, and like the Redevelopment Project Area No. 1 above, it has been subsequently modified as districts are adopted or modified. It is also a unique geographic area in which TIF from the TIF Districts (TIF 7-4, 7-5A, 7-6, 7-7 and 7-8) can be spent. The City administers this Development District. Three Year Rule — This is governed by MN Statute 469.176 sub la. This statutory section was repealed in 2005, but remained in effect for the districts that existed when the rule was in place. It states that, within three years form certification date, bonds must be issued, the authority has acquired land or has caused public improvements to be constructed in the district. Four Year Rule — This is governed by MN Statute 469.176 sub 6. This section requires that, within four years from certification, certain activities must have taken place on each parcel within the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. If such activities have not taken place on a parcel, the parcel is `knocked down' from the district. This means that increment may no longer be collected from that parcel. If activity subsequently takes place, there are procedures to reinstate the parcel in the district. The reinstatement process does not require a public hear or a TIF plan modification. Five Year Rule — This is governed by MN Statute 469.1763 and places limits on the amount and the time in which revenues may be used on activities outside the district. TIF spent on activities outside the geographic boundary of the district itself is referred to as `pooling'. For redevelopment districts, 25% of increment collected may be spent, subject to limitations, on activities outside the boundaries of the district itself. For economic development and housing districts, this limit is reduced to 20%. Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 86 Page 87 Map of the TIF Districts Plymouth Housing & Redevelopment Authority Project Area No. 1 Open TIF Districts 0 District g°undary Pity ofayR th, 0Lake lhinnesa� 1 0.5 0 1 z 3 4 mommommi hf es Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota August 2017 Page 87 Page 88 Development District No. 7 Apra fat 20 f I T,, ECJ,, ,, o'& e Y e i P er.?e r.. r DLS&V- Wo T iR aeiRP erAamiY7fe y.e toCertskcws M'.TA �e CNy! Vnlls iiy of Ns�4 +wN.ac�a as os � a x xav •w�ti.�vr..T-r-.s..�.1rr is ..,n Management Review & Analysis - Tax Increment Financing Districts Plymouth, Minnesota LEGEND [=Dr ,:.P.11, D11Hd No. 7 117-1 C'ly Sour-darp Lakes Major S33d' './ Roads Tom,/ Railroads August 2017 Page 88 Page 89 h ] - -- 4M EHLERS LEADERS IN PUBLIC FINANCE L- L TIF Status Report City of Plymouth Steve Juetten April 24, 2018 1 - f�■ Overview • Number of TIF Districts • Tax Capacity Captured by TIF • Increase in Tax Base • Existing Obligations • Pooling for affordable housing and redevelopment 2 EHLERS LEARERS IN PUBLIC FINANCE Number of TIF Districts • 9 TIF Districts ✓ 6 Redevelopment (26 years) • TIF 1-1 (Shops at Plymouth Creek), TIF 1-3 (Plymouth Crossroads), TIF 7-4 (Hoyt), TIF 7-6 (Berkshire), TIF 7-8 (Quest), TIF 7-9 (Agora) ✓ 3 Housing (26 years) • TIF 1-2 (Vicksburg Commons), TIF 7-5A (Village at Basset Creek), TIF 7-7 (Stone Creek Village) EHLERS LEARERS IN PU13LIC FINANCE Future Captured Tax Capacity in TIF Total Tax Capacity (Gross) 129,056,727 130,347,294 131,650,767 132,967,275 134,296,948 135,639,917 136,996,316 Percentage of Tax Base in TIF CURRENT DISTRICTS 1.2% 1.2% 1.4% 1.4% 1.4% 1.2% TIF 1-1 Shops at Plymouth Creek 222,424 224,648 226,895 229,164 231,455 233,770 236,108 District Legal Max Term 12/31/2031 Interfund Loan Obligation: Anticipated End 2/1/2022 TIF 1-2 Vicksburg Commons 31,039 31,349 31,663 31,980 32,299 32,622 32,949 District Legal Max Term 12/31/2033 Interfund Loan Obligation: Anticipated End 2/1/2027 PAYG Obligation: Anticipated End 8/1/2025 TIF 1-3 Plymouth Crossroads 313,366 316,500 319,665 322,861 326,090 329,351 332,644 District Legal Max Term 12/31/2033 PAYG Obligation: Anticipated End 8/1/2025 TIF 7-4 Hoyt 274,493 277,238 280,010 282,810 285,639 288,495 0 District Legal Max Term 12/31/2022 Deficit Pooling with TIF 7-5: Anticipated End 2/1/2023 TIF 7-5 Village at Basset Creek 172,951 174,681 176,427 178,192 179,974 181,773 183,591 District Legal Max Term 12/31/2026 2009 GO TIF Refunding Bonds: Anticipated End 2/1/2023 TIF 7-6 Berkshire 205,950 208,010 0 0 0 0 0 District Legal Max Term 12/31/2028 PAYG Obligation: Anticipated End 7/31/2018 TIF 7-7 Stone Creek Village 180,343 182,146 183,968 185,808 187,666 189,542 191,438 District Legal Max Term 12/31/2028 PAYG Obligation: Anticipated End 2/1/2018 TIF 7-8 Quest Development 105,052 106,103 107,164 108,235 109,318 110,411 111,515 District Legal Max Term 12/31/2040 PAYG Obligation: Anticipated End 8/1/2031 TIF 7-9 Agora 0 229,319 569,518 575,213 580,965 586,775 District Le al Max Term 12/31/2044 Total Captured" 1,505,6181 1,520,674 1,555,110 1,908,567 1,927,653 1,946,929 1,675,019 Total Tax Capacity (Gross) 129,056,727 130,347,294 131,650,767 132,967,275 134,296,948 135,639,917 136,996,316 Percentage of Tax Base in TIF 1.2% 1.2% 1.2% 1.4% 1.4% 1.4% 1.2% Tax Capacity Captured by TIF Final Payable 2017 Minneapolis 8.5% 61.13% Aa1/AAA Bloomington 7.8% 40.93% Aaa/AAA Edina 2.6% 28.19% Aaa/AAA Eden Prairie 2.6% 32.48% Aaa Minnetonka 2.2% 36.38% Aaa Brooklyn Park 2.1% 54.37% AA+ Plymouth 1.2% 26.48% Aaa/AAA Maple Grove 0.4% 38.25% AAA Golden Vallev 0.1% 56.11% Aa1 EHLERS LEARERS IN PUBLIC FINANCE Increase in Tax Base • Nearly 660% increase in market value overall TIF 1-1 Shops at Plymouth Creek 6,972,800 24, 343, 000 249.11% TIF 1-2 Vicksburg Commons 1,487,700 7,140,000 379.94% TIF 1-3 Plymouth Crossroads 2,544,100 23, 332, 000 817.10% TI F 7-4 Hoyt 440,700 21, 836, 000 4854.84% TI F 7-5 Village at Basset Creek 749,694 17, 629,140 2251.51% TIF 7-6 Berkshire 4,200,000 14,460, 000 244.29% TI F 7-7 Stone Creek Village 296,000 17,128, 000 5686.49% TIF 7-8 Quest Development 1,244,900 10, 336, 000 730.27% **TIF 7-9 Agora 8,549,000 8,549,000 0.00% ** TOTAL 26,484,894 144,753,140 659.39% EHLERS LEARERS IN PUBLIC FINANCE Final Thoughts 1. Redevelopment efforts have increased property valuations within the TIF districts by nearly 660% and justify the short term investment 2. The City's TIF districts are in overall good financial health 3. The City has opportunities to utilize funds from several districts to augment its housing and redevelopment efforts and to assist in paying for other eligible redevelopment costs and/or affordable housing projects (HRA -owned) and future projects EHLERS LEARERS IN PUBLIC FINANCE rp)City of Plymouth Adding Quality to Life To: SPECIAL COUNCIL MEETING Prepared by: April 24, 2018 Reviewed by: Agenda 2D Number: Mayor and Council Dave Callister, City Manager Item: Set Future Study Sessions Pending Study Session Topics (at least three Council members have approved the following study items on the list): None at this time. Other Council requests for Study Session Topics: None at this time. Staff's requests for Study Sessions: • City Manager's Quarterly update (suggest May 22 following regular Council meeting) • Transit update (placeholder at this time and can be scheduled with other items) Page 1 r�ity Plymouth Adding Quality tO Life April 2018 1 2 3 4 5 6 7 7:00 PM PLANNING COMMISSION MEETING Council Chambers 8 9 10 11 12 13 14 5:30 PM 7:00 PM SPECIAL COUNCIL MEETING ENVIRONMENTAL Hotel Licensing QUALITY Medicine Lake Room COMMITTEE 7:00 PM MEETING REGULAR COUNCIL Medicine Lake Room MEETING Council Chambers 15 16 17 18 19 20 21 4:30 PM to 7:00 PM Hennepin County Primavera Primavera Open Book Meeting Plymouth Creek Plymouth Creek Medicine Lake Room Center Center 7:00 PM PLANNING COMMISSION MEETING Council Chambers 22 23 25:30 PM 25 26 27 28 OUNCIL/HRA/ Planning Commission MEETING Housing Study/TIF District update/Senior Building Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers 7:00 PM 29 30 HOUSING AND REDEVELOPMENT AUTHORITY MEETING Medicine Lake Room Page 2 r�ity Plymouth Adding Quality to Life May 2018 Page 3 1 2 3 4 5 6:00 PM 7:00 PM Walk with PLANNING the Mayor COMMISSION Plymouth Creek MEETING Center Council Chambers 6 7 8 9 10 11 12 5:00 PM 8:00 AM -12:30 SPECIAL COUNCIL 7:00 PM 7:00 PM PM MEETING ENVIRONMENTAL PARK It REC Fire Department Fire Dep t. Update QUALITY ADVISORY Waffle Breakfast Medicine Lake Room COMMITTEE COMMISSION Fire Station III 7:00 PM MEETING MEETING REGULAR COUNCIL Medicine Lake Room Council Chambers MEETING Council Chambers 13 14 15 16 17 18 19 7:00 PM PLANNING 10:00 AM COMMISSION Bark in the Park MEETING Hilde Performance Council Chambers Center 20 21 22 5:30 PM 23 24 25 26 COUNCIL/EQC 7:00 PM MEETING HOUSING AND Organics Recycling REDEVELOPMENT Medicine Lake Room AUTHORITY 7:00 PM MEETING REGULAR COUNCIL Medicine Lake Room MEETING Council Chambers 27 28 29 30 31 MEMORIAL DAY CITY OFFICES CLOSED Page 3 r�ity Plymouth Adding Quality t0 Life June 2018 Page 4 1 2 3 4 5 6 7 8 9 7:00 PM PLANNING COMMISSION MEETING Council Chambers 10 11 12 13 14 15 16 5:30 PM SPECIAL COUNCIL 7:00 PM 7:00 PM MEETING ENVIRONMENTAL PARK £t REC TwinWest Up - date/Budget Goals QUALITY ADVISORY Medicine Lake Room COMMITTEE COMMISSION 7:00 PM MEETING MEETING REGULAR COUNCIL Medicine Lake Room Plymouth Creek MEETING Center Council Chambers 19 17 18 20 21 22 23 7:00 PM PLANNING COMMISSION MEETING Council Chambers 24 25 26 27 28 29 30 5:30 PM SPECIAL COUNCIL 7:00 PM VOTE MEETING HOUSING AND State of the Streets in REDEVELOPMENT NW Plymouth AUTHORITY Medicine Lake Room Absentee Voting 7:00 PM begins for State REGULAR COUNCIL Medicine Lake Room Primary Election MEETING Council Chambers Page 4 r�ity Plymouth Adding Quality to Life July 2018 1 2 3 4 5 6 7 INDEPENDENCE DAY CITY OFFICES CLOSED 8 9 10 11 7:00 PM 12 13 14 ENVIRONMENTAL QUALITY COMMITTEE MEETING Medicine Lake Room 5:30 PM - 10:30 PM Music in Plymouth Hilde Performance Center 15 16 17 18 19 20 21 7:00 PM PLANNING COMMISSION MEETING Council Chambers 22 23 24 25 26 27 28 7:00 PM 7:00 PM REGULAR HOUSING AND COUNCIL MEETING Council Chambers REDEVELOPMENT AUTHORITY MEETING Medicine Lake Room 29 30 31 CITY COUNCIL FILINGS OPEN Mayor, At Large, Ward 2 and Ward 4 Page 5 r�ity Plymouth Adding Quality to Life August 2018 Page 6 1 2 3 4 7:00 PM 6:00 PM - 9:00 PM PLANNING Kids Fest COMMISSION Hilde MEETING Performance Center Council Chambers 5 6 7 8 9 10 11 7:00 PM ENVIRONMENTAL 10:00 AM -3:00 PM QUALITYABSENTEE/DIRECT COMMITTEE BALLOTING MEETING Medicine Lake Room 12 13 14 � 15 16 17 18 VOTE 8:00 AM -5:00 PM 7:00 PM 5:00 PM ABSENTEE/DIRECT PRIMARY PLANNING CITY COUNCIL FILINGS BALLOTING ELECTION COMMISSION DEADLINE TO Polls Open MEETING WITHDRAW 7:00 AM to 8:00 PM Council Chambers 5:00 PM CITY COUNCIL FILINGS CLOSE 19 20 21 22 23 24 25 7:00 PM 5:30 PM HOUSING AND SPECIAL COUNCIL REDEVELOPMENT MEETING AUTHORITY Budget and CIP MEETING Medicine Lake Room Medicine Lake Room 26 27 28 5:30 PM 29 30 31 SPECIAL COUNCIL MEETING Budget and CIP Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers Page 6 r� City of Plymouth Adding Quality to Life September 2018 Page 7 1 2 3 4 5 6 7 6:00 PM 7:00 PM SPECIAL COUNCIL PLANNING LABOR DAY MEETING COMMISSION Budget and CIP MEETING CITY OFFICES Medicine Lake Room Council Chambers CLOSED 9 10 11 12 13 14 15 7:00 PM 7:00 PM 7:00 PM REGULAR COUNCIL ENVIRONMENTAL PARK £t REC MEETING QUALITY ADVISORY Council Chambers COMMITTEE COMMISSION MEETING MEETING Medicine Lake Room Public Works Maintenance Building, 14900 23rd Ave. N. 16 17 18 19 20 21 22 7:30 PM VOTE 10:30 AM - 2:00 PA PLANNING Plymouth on Parad COMMISSION qw Celebration MEETING City Center Area Council Chambers ABSENTEE VOTING BEGINS FOR GENERAL ELECTION 2330 24 25 26 27 28 29 7:00 PM 7:00 PM REGULAR COUNCIL HOUSING AND MEETING REDEVELOPMENT Council Chambers AUTHORITY MEETING Medicine Lake Room Page 7