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Figure 1 . <br /> Summary of Financial Results <br /> Entrepreneurial Return as Percent of Development Cost Development <br /> Scenarios <br /> 150% <br /> 100% <br /> 50% <br /> ::: ®Base <br /> 1 MUO E 2 R-1 IMBonus <br /> ❑Bonus&TDR Payment <br /> ❑Bonus&TD R w/M FTE <br /> -100% <br /> -150% <br /> -200% <br /> The higher density scenarios achieve improved economic performance in most cases, but <br /> fall short of targeted entrepreneurial return of 10%. The cases that show the strongest <br /> performance are those that take advantage of the Multifamily Tax Exemption program. <br /> The E-1 MUO scenario achieves a rate of return that exceeds 10%. The E-1 MUO <br /> scenario benefits from a very low parking ratio. The R-1 Cottage Housing scenario also <br /> performs well. It achieves a large increase in density without requiring an expensive <br /> construction solution. <br /> For many of the other scenarios with the tax exemption program, the target return could <br /> be achieved with realistic potential increases in rents beyond assumed levels. <br /> The E-1 MUO is the only case that supports a positive value for the TDR credits at <br /> $5,200. Assuming a sending site value of$15,000 per unit, the equivalent transfer rates <br /> would be 2.9 receiving site units per sending site unit. <br /> Ultimately it is the multifamily tax exemption program that makes the bonus schemes <br /> even marginally feasible. Application of both a TDR and a tax exemption program <br /> would have the effect of funding rural land preservation through the foregone tax <br /> revenues from the tax exemption, rather than the payments from developers. <br /> EVERETT TRANSFER OF DEVELOPMENT RIGHTS STUDY FINAL REPORT <br /> PROPERTY COUNSELORS PAGE 6 <br />