Municap 27-A Projections

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Municap 27-A Projections Capital City Opportunity Plan Richmond, Virginia Tax Increment Financing Projections Draft Projection No. 27-A (Citi Debt Service) DRAFT Assumptions: Updated Increment Financing Area Parcels Revenues Available for Debt Service: Includes Real Property Tax Increment Revenues - 100% Pledge Includes Remaining Expanded TIF District Incremental Tax Revenues Includes Meals Tax Revenues - 100% Pledge Includes Lodging Tax Revenues - 100% Pledge Includes BPOL Fee Revenues - 100% Pledge Includes Dominion Tower 1 (Anticipated Building 2019) Increment Tax Revenues - 100% Pledge Includes Dominion Tower 2 (Anticipated Building 2020) Increment Tax Revenues - 100% Pledge Includes Designated Revenues from Arena Includes District-Wide Parking Revenues Includes Music Hall and Armory Revenues Prepared By: MuniCap, Inc. Public Finance November 6, 2019 Capital City Opportunity Plan Richmond, Virginia Tax Increment Financing Projections Table of Contents Bond Assumptions I. Sources and Uses of Funds A. Bond Issuance Assumptions 1 B. Estimated Costs of Improvements 2 II. Debt Service Projections A. Series A 3 B. Series B 4 III. Details of the Capitalized Interest Account A. Series A 5 B. Series B 6 C. Taxable Capitalized Interest Account (Tax-exempt Bonds) 7 IV. Details of the Improvement Fund A. Total 8 B. Detailed Disbursements 9 Development & Tax Projection Assumptions V. Projected Development A. by Type 10 B. by Block 11 VI. Comparison of Valuation Methods 13 VII. Calculation of Market Value A. Income Capitalization (Residential) 14 B. Income Capitalization (Commercial) 15 C. Income Capitalization (Hotel) 16 D. Comparables (Residential) 17 E. Comparables (Commercial) 18 F. Cost Estimates 19 VIII. Projected Absorption A. Residential 21 B. Commercial 29 IX. Total Projected Market Value A. Residential 32 B. Commercial 44 X. TIF District Base Value 51 XI. Projected TIF District Real Property Tax Increment Revenues A. Projected Market Value (By Block) 52 B. Available for Debt Service 53 Capital City Opportunity Plan Richmond, Virginia Tax Increment Financing Projections Table of Contents XII. Projected Dominion Tower Real Property Tax Increment Revenues 54 XIII. Projected Remaining Expanded TIF District Real Property Tax Increment Revenues 55 XIV. Projected Operating Sales Tax Revenues (Local and State) 56 XV. Projected Meals Tax Revenues A. Projected Restaurant Sales Revenues 70 B. Available for Debt Service and to the City 71 XVI. Projected Construction Sales Tax Revenues 72 XVII. Projected Lodging Tax Revenues 75 XVIII. Projected BPOL Fee Revenues 76 XIX. Designated Arena Revenues 87 XX. Other Revenues Available to Repay Debt Service 88 Total Projected Revenues Available for Debt Service - Including Dominion Tower Tax XXI. Increment Revenues 89 Projected Debt Service Coverage XXII. Projected Payment of Debt Service and Debt Service Coverage 90 XXIII. Summary of Turbo Redemptions 91 Appendices Appendix A: Estimated Sales Data A-1 Appendix B: Expanded TIF District Base Value B-1 Capital City Opportunity Plan Richmond, Virginia Bond Assumptions Capital City Opportunity Plan Richmond, Virginia Schedule I-A: Sources and Uses of Funds - Bond Issuance Assumptions1 Series A Series B Tax-Exempt Taxable Bond Total Bond Bond Proceeds Percent Proceeds Percent Proceeds Percent Sources of funds: Bond proceeds $286,180,000 100.0% $26,190,000 100.0% $312,370,000 100.0% Total sources of funds $286,180,000 100.0% $26,190,000 100.0% $312,370,000 100.0% Uses of funds: Improvements (See Schedule I-B)2 $217,559,655 76.0% $14,303,500 54.6% $231,863,155 74.2% Costs of issuance/underwriter's discount $5,723,600 2.0% $523,800 2.0% $6,247,400 2.0% Deposit to escrow fund for G.O. bonds3 $0 0.0% $3,000,000 11.5% $3,000,000 1.0% Deposit to capitalized interest fund for tax-exempt bonds3 $0 0.0% $1,008,427 3.9% $1,008,427 0.3% Capitalized interest (See Schedule III)34 $36,857,880 12.9% $4,734,712 18.1% $41,592,592 13.3% Reserve fund $26,037,400 9.1% $2,619,000 10.0% $28,656,400 9.2% Rounding $1,464 0.0% $461 0.0% $1,925 0.0% Total uses of funds $286,180,000 100.0% $26,189,900 100.0% $312,369,900 100.0% Assumptions: Weighted average maturity 20.05 years 21.13 years Interest only 5.03 years 6.13 years Amortization 24 years 22 years Bond coupon rate 5.50% 7.25% Reinvestment rates: Reserve fund 1.70% 1.70% Improvement fund 1.40% 1.40% Capitalized interest account 1.40% 1.40% Date bonds issued 1-Apr-20 1-Apr-20 Dates payments due: Interest September 1 and March 1 September 1 and March 1 Principal March 1 March 1 Capitalized interest: Interest funded through 1-Mar-23 1-Mar-24 Months interest funded 35 47 MuniCap, Inc. ONSULTING\Concord Eastridge\Projections\[Concord Eastridge - Projection No. 27-A (Citi Debt Service).xlsx]I-A 6-Nov-19 1Debt service projections prepared by Citi as of 10/29/2019. Preliminary, subject to change. 2Improvement amount is net of interest earned on the improvement fund and excess revenues. 3Provided by Citi. Addition due diligence required. 4A portion of the capitalized interest funded by the taxable bonds, is applied to debt service on the tax-exempt bonds. This capitalized interest is applied to debt service on the tax-exempt bonds after 36 months and is assumed to be taxable. DRAFT Page 1 DRAFT Capital City Opportunity Plan Richmond, Virginia Schedule I-B: Sources and Uses of Funds - Estimated Costs of Improvements1 Costs Deposit to project fund $231,863,155 Interest earnings $4,594,449 Excess revenues $8,542,396 Estimated costs financed by bonds $245,000,000 MuniCap, Inc. astridge\Projections\[Concord Eastridge - Projection No. 27-A (Citi Debt Service).xlsx]I-B 6-Nov-19 1Based on information provided by Concord Eastridge. Additional break-out of costs to be provided. DRAFT Page 2 DRAFT Capital City Opportunity Plan Richmond, Virginia Schedule II-A: Debt Service Projections - Series A1 Gross Gross Annual Reserve Net Annual Interest Debt Service Debt Service Capitalized Fund Debt Date Principal Rate Interest Payments Payments Interest Income Service 1-Apr-20 1-Sep-20 $6,558,292 $6,558,292 ($6,558,292) $0 1-Mar-21 $0 5.50% $7,869,950 $7,869,950 $14,428,242 ($7,423,388) ($446,562) $0 1-Sep-21 $7,869,950 $7,869,950 ($7,869,950) $0 1-Mar-22 $0 5.50% $7,869,950 $7,869,950 $15,739,900 ($7,382,791) ($487,159) ($0) 1-Sep-22 $7,869,950 $7,869,950 ($4,448,612) $0 1-Mar-23 $0 5.50% $7,869,950 $7,869,950 $15,739,900 ($3,961,453) ($487,159) $6,842,676 1-Sep-23 $7,869,950 $7,869,950 ($530,674) $0 1-Mar-24 $0 5.50% $7,869,950 $7,869,950 $15,739,900 ($530,674) $0 $14,678,551 1-Sep-24 $7,869,950 $7,869,950 $0 1-Mar-25 $2,360,000 5.50% $7,869,950 $10,229,950 $18,099,900 $0 $18,099,900 1-Sep-25 $7,805,050 $7,805,050 $0 1-Mar-26 $4,520,000 5.50% $7,805,050 $12,325,050 $20,130,100 $0 $20,130,100 1-Sep-26 $7,680,750 $7,680,750 $0 1-Mar-27 $4,495,000 5.50% $7,680,750 $12,175,750 $19,856,500 $0 $19,856,500 1-Sep-27 $7,557,138 $7,557,138 $0 1-Mar-28 $4,995,000 5.50% $7,557,138 $12,552,138 $20,109,275 $0 $20,109,275 1-Sep-28 $7,419,775 $7,419,775 $0 1-Mar-29 $5,530,000 5.50% $7,419,775 $12,949,775 $20,369,550 $0 $20,369,550 1-Sep-29 $7,267,700 $7,267,700 $0 1-Mar-30 $6,105,000 5.50% $7,267,700 $13,372,700 $20,640,400 $0 $20,640,400 1-Sep-30 $7,099,813 $7,099,813 $0 1-Mar-31 $6,705,000 5.50% $7,099,813 $13,804,813 $20,904,625 $0 $20,904,625 1-Sep-31 $6,915,425 $6,915,425 $0 1-Mar-32 $7,345,000 5.50% $6,915,425 $14,260,425 $21,175,850 $0 $21,175,850 1-Sep-32 $6,713,438 $6,713,438 $0 1-Mar-33 $8,025,000 5.50% $6,713,438 $14,738,438 $21,451,875 $0 $21,451,875 1-Sep-33 $6,492,750 $6,492,750 $0 1-Mar-34 $8,750,000 5.50% $6,492,750 $15,242,750 $21,735,500 $0 $21,735,500 1-Sep-34 $6,252,125 $6,252,125 $0 1-Mar-35 $9,505,000 5.50% $6,252,125 $15,757,125 $22,009,250 $0 $22,009,250 1-Sep-35 $5,990,738 $5,990,738 $0 1-Mar-36 $10,320,000 5.50% $5,990,738 $16,310,738 $22,301,475 $0 $22,301,475 1-Sep-36 $5,706,938 $5,706,938 $0 1-Mar-37 $11,175,000 5.50% $5,706,938 $16,881,938 $22,588,875 $0 $22,588,875 1-Sep-37 $5,399,625 $5,399,625 $0 1-Mar-38 $12,085,000 5.50% $5,399,625 $17,484,625 $22,884,250 $0 $22,884,250 1-Sep-38 $5,067,288 $5,067,288 $0 1-Mar-39 $13,050,000 5.50% $5,067,288 $18,117,288 $23,184,575 $0 $23,184,575 1-Sep-39 $4,708,413 $4,708,413 $0 1-Mar-40 $14,065,000 5.50% $4,708,413 $18,773,413 $23,481,825 $0 $23,481,825 1-Sep-40 $4,321,625 $4,321,625 $0 1-Mar-41 $15,145,000 5.50% $4,321,625 $19,466,625 $23,788,250 $0 $23,788,250 1-Sep-41 $3,905,138 $3,905,138 $0 1-Mar-42 $16,285,000 5.50% $3,905,138 $20,190,138 $24,095,275 $0 $24,095,275 1-Sep-42 $3,457,300 $3,457,300 $0 1-Mar-43 $17,495,000 5.50% $3,457,300 $20,952,300 $24,409,600 $0 $24,409,600 1-Sep-43 $2,976,188 $2,976,188 $0 1-Mar-44 $18,775,000 5.50% $2,976,188 $21,751,188 $24,727,375 $0 $24,727,375 1-Sep-44 $2,459,875 $2,459,875 $0 1-Mar-45 $20,130,000 5.50% $2,459,875 $22,589,875 $25,049,750 $0 $25,049,750 1-Sep-45 $1,906,300 $1,906,300 $0 1-Mar-46 $21,560,000 5.50% $1,906,300 $23,466,300 $25,372,600 $0 $25,372,600 1-Sep-46 $1,313,400 $1,313,400 $0 1-Mar-47 $23,080,000 5.50% $1,313,400 $24,393,400 $25,706,800 $0 $25,706,800 1-Sep-47 $678,700 $678,700 $0 1-Mar-48 $24,680,000 5.50% $678,700 $25,358,700 $26,037,400 $0 $26,037,400 Total $286,180,000 $315,578,817 $601,758,817 $601,758,817 ($38,705,835) ($1,420,880) $561,632,102 MuniCap, Inc.
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