Michiganmagnet Fund

MichiganMagnet Fund

2005-2006

Application

for

New Market Tax Credit Financing

REVISION 7

PROJECT NAME:
CITY:

Due Date 9/30/05 with nonrefundable check made out to the

Michigan Magnet Fund I

Page 1 of 20

Magnet Fund Application Rev 7

Updated August 30, 2005

SECTION I – PROJECT IDENTIFICATION

PART A. PRIMARY CONTACT PERSON:

NameTitle

Organization

Street Address

City State Zip

Telephone # with Area Code Fax # with Area Code

E-Mail Address:

PART B. PROJECT LOCATION

(Attach location map – Exhibit A)

Project Name

Street Address

City Township County State Zip

PART C. PROJECT DESCRIPTION

Provide short description of the project (include site plan and elevation, if availableunder Exhibit B______

PART D: TYPE OF CONSTRUCTION (Check applicable category)

New construction Acquisition and rehabilitation

PART E: PROJECTED JOB CREATION

# Temporary Jobs_____ # New Permanent Jobs______# Retained Jobs______

Addendum I.SECTION II - SITE INFORMATION

PART A. TYPE OF DEVELOPMENT (Check all applicable)

Mixed-Use / Neighborhood Commercial / OfficeBuilding
Industrial / For Sale Housing / Downtown Development
Other, Describe:

PART B. LOCATION CHARACTERISTICS OF PROJECT

1.Location Data:(Can be obtained from local city or township office)

Is the Census Tract an Eligible NMTC Census Tract per CDFI? / Yes No
Census Tract # / County:
State Senate District # / State House District # / Congressional District #

a)Is the Median Family Income less than 80% of State or MSA Median Family Income depending on whether community is in an MSA? Yes No

b)Is the Median Family Income less than 70% of State or MSA Median Family Income depending on whether community is in an MSA? Yes No

c)Is Poverty Level of the Census Tract Greater than 20%? Yes No

d)Is Poverty Level of the Census Tract Greater than 30%? Yes No

e)Is the Project located in a

Brownfield Yes No
Empowerment Zones, Yes No
HUB Zones Yes No
HOPE VI neighborhoods, Yes No or a
Community approved Revitalization Area Yes No
Enterprise Community Yes No.
Renewal Community? Yes No If Yes, list that area here______
Renaissance Zone? Yes No If Yes, list that area here:
Cool City Area Yes No If Yes, list that area here:
Eligible distressed area? Yes No

To search the internet for the census tract number, go to:

and then to the Michigan Magnet Fund

2.Political Jurisdiction: City/Township of

Name and Title of CEO of Jurisdiction

Address

CityStateZip

Contact name Department______

Street Address__

City State Zip

e-mail address ______

Telephone # with Area Code Fax # with Area Code___

3Land Control Type:

Titleholder

Option to Purchase – Expiration Date:

Land Contract Vendee

Long-term Lease – Expiration Date:

Other

Describe:

Exhibit C attach documentation proving land control (deed or purchase agreement) for the development site and necessary title commitments

Environmental Clearance:

A Phase 1 Environmental Site Assessment,completed within 6 months of closing date,is required for all MMF Projects

Date Phase 1 Environmental Site Assessment completed ______Attach in Exhibit D

Did the Phase 1 recommend additional Site Assessment Yes No

If Yes, when was the additional assessment completed ______

Does the assessment indicate a reportable environmental condition on the site? Yes No

If Yes, provide a copy of the MDEQ approved Remediation and/or Due Care Plan in Exhibit E

Is the remediation and due care requirements included in the development cost Yes No

Has a BEA with its due care requirements been filed with the MDEQ? Yes No

If yes, Date filed ______Date approved ______

Complete only for Rehabilitation Residential Mixed Use Project

Has the site been tested or lead based paint? Yes No

If yes has a plan been adopted to mitigate the lead based paint problem in accordance with MSHDA guidelines Yes No

5Community Revitalization Plan:

Is the project located in a qualified census tract for which a community development or revitalization plan is in place? Yes No

Demonstrate that the proposed development contributes to the revitalization plan? Yes No

Provide letter from City Planner or Mayor as part of Exhibit F.

Other Investment:

Does MSHDA or Great Lakes Capital or MEDA have a significant investment in the neighborhood? Yes, Provide Information on the projects as part of Exhibit G No

PART D. SPACE USAGE

Land Area (acres): / Building Square Feet: / Number of Floors
Building # / # of Floors / Size in Square Feet
Commercial / Residential / Other/Parking / Total
1
2
3
4
5
6
Total

PART E. PROJECTED TENANT INFORMATION

Complete the following:

List All Commercial Tenants / Square Feet / Signed Leases? / Signed Letter of Intent? / Term of Lease
1. / Yes No / Yes No
2. / Yes No / Yes No
3. / Yes No / Yes No
4. / Yes No / Yes No
5. / Yes No / Yes No
6. / Yes No / Yes No
Total:
% of TotalBuilding with signed Leases ______%

Complete for Mixed Use Projects

Building # / 1 / 2 / 3 / 4 / 5
Projected Gross Rent for Commercial space
Projected Gross Rent for Residential Space
Projected Total Gross Rents
% Commercial Gross Rents/Total gross Rents

Do any of the tenants sell liquor as its primary business and will its prohibition be in the lease agreements Yes No

Do any of the tenants have gambling as its primary function Yes No

Do any of the tenants sell or contain collectibles Yes No

Do any of the tenants sell pornographic material Yes No

SECTION III – OWNERSHIP / MANAGEMENT / DEVELOPMENT INFORMATION

PART A. SPONSOR INFORMATION (General Partner/Developer)

1.Legal Name of Sponsor Taxpayer ID

Street Address

City State Zip

Contact Person

Telephone # with Area Code Fax # with Area Code

E-Mail Address:

Provide attorney letters that the sponsoring organization is a legally constituted organization and can enter into an agreement with the Michigan Magnet Fund or its subsidiary company. Exhibit G

PART B. OWNER INFORMATION(Limited Partnership)

1.Legal Name of Owner Taxpayer ID

Street Address

City State Zip

Contact Person

Telephone # with Area Code Fax # with Area Code

E-Mail Address:

Informational letters and documents requiring signatures will be sent to the contact person listed under Owner Information. Please make sure the name, street address, telephone number, and e-mail address are correct.

1.Type of Sponsor: (Check all that apply.)

General Partnership / Limited Partnership / Individual
Corporation / Local Unit of Government / Limited Liability Company
Nonprofit / Publicly Traded Company / Joint Venture
Other, Describe:

2.Type of Owner: (Check all that apply.) (QLICB)

General Partnership / Limited Partnership / Individual
Corporation / Local Unit of Government / Limited Liability Company
Nonprofit / Publicly Traded Company / Joint Venture
Other, Describe:

Legal Status of Owner:

Currently Exists. / Tax Year: / From: / To:
To Be Formed. / Estimated Date:
Accounting Method of Partnership: / Cash / Accrual

Attach Copy of organizing papers as part of Exhibit G
4.Complete the following:

List Individuals/Organizations which Comprise the Ownership Entity / Indicate Type of Organization / Soc. Sec. or Taxpayer ID / % of
Ownership

Voluntary Information for Government Monitoring Purposes:

The following information is requested by the MichiganMagnet Fund for statistical purposes and relates to the majority/controlling interest in the owner(s) of the proposed development. Furnishing this information is optional. If you do not wish to furnish the following information, please initial below.

APPLICANT: I do not wish to furnish this information. (initials)

RACE/NATIONAL ORIGIN:

Hispanic / Asian or Pacific Islander / Black
Am. Indian or Alaskan Native / Multiracial / White

GENDER: Female Male

PART C - NMTC REQUIREMENTS

Does or will the ownership entity maintain a complete set of books and records for the eligible site? Yes No
Will the ownership entity have revenue within three years of closing on the allocation Yes, submit letter, refer to schedule in the application No
Will at lease 50% of the total gross income of the ownership entity will be derived from the active conduct of a qualified business within the low income area
Will 40% of the use of tangible property of the ownership entity be within the low income community described herein Yes No
Will at least 40% of the services performed for the ownership entity by its employees are performed in a low-income community. (% is determined based on a fraction the numerator of which is the total amount paid by the entity for employee services performed in the low income community and the denominator of which is paid b the entity for employee services Yes No
Does less than 5% of the average of the aggregate unadjusted basis of the property of such entity attributable to nonqualified financial property such as debt, stock, partnership interest, options, futures, forward contracts, warrants, annuities, etc. Yes No

A no answer to any of the above questions means that the project is not eligible to receive NMTC allocation.

PART D. DEVELOPMENT TEAM

1.Management Entity:

Firm Name Related Entity Yes No

Taxpayer Identification Number

Street Address

City State Zip

Contact Person

Telephone # with Area Code Fax # with Area Code

E mail Address:______

Voluntary Information for Government Monitoring Purposes:

The following information is requested by the MichiganMagnet Fund for statistical purposes and relates to the majority/controlling interest of the proposed development. Furnishing this information is optional. If you do not wish to furnish the following information, please initial below.

APPLICANT: I do not wish to furnish this information. (initials)

RACE/NATIONAL ORIGIN:

Hispanic / Asian or Pacific Islander / Black
Am. Indian or Alaskan Native / Multiracial / White

GENDER: Female Male

2.Project Attorney:

Firm Name Related Entity Yes No

Street Address

City State Zip

Contact Person

e-mail address ______

Telephone # with Area Code Fax # with Area Code

3.Project Accountant:

Firm Name Related Entity Yes No

Street Address

City State Zip

Contact Person

e-mail address ______

Telephone # with Area Code Fax # with Area Code

4.Consultant:

Firm Name Related Entity Yes No

Street Address

City State Zip

Contact Person

e-mail address ______

Telephone # with Area Code Fax # with Area Code

5.Builder/Contractor:

Firm Name Related Entity Yes No

Street Address

City State Zip

Contact Person

e-mail address ______

Telephone # with Area Code Fax # with Area Code

6.Architect:

Firm Name Related Entity Yes No

Street Address

City State Zip

Contact Person

e-mail address ______

Telephone # with Area Code Fax # with Area Code

7.Engineer:

Firm Name Related Entity Yes No

Street Address

City State Zip

Contact Person

e-mail address ______

Telephone # with Area Code Fax # with Area Code

8.Other (Describe):

Firm Name Related Entity Yes No

Street Address

City State Zip

Contact Person

e-mail address ______

Telephone # with Area Code Fax # with Area Code

SECTION V - PROJECT SCHEDULE
Modify as needed / Actual Date / Anticipated Completion Date
SITE
Acquisition of Land
Acquisition of Building(s)
Site Plan Approval
All Site Utilities in Place
Historic Tax Credits Part 1 Approved
Historic Tax Credits Part 2 Approved
Brownfield Plan (SBT) Approval (Local)
Brownfield Plan Approval (SBT) (State)
Brownfield Plan Approval (Local) (SBT)
Brownfield Plan Approval (State) (SBT)
Obsolete Property or Other Property Tax Incentive
LEASE – UP
Begin Lease-up
Substantial Rent-up
Placed in Service Date
Certificate of Occupancy Issued
Completion of Project Audit by CPA
CONSTRUCTION FINANCING
Firm Loan Approval(s)
Closing and Disbursement of Funds
PERMANENT FINANCING
Firm Approval of Loan(s)
Closing and Disbursement
GRANTS/SUBSIDIES
Firm Approval(s)
Closing and Disbursement
OWNERSHIP ENTITY FORMATION
Articles of Incorporation/Certificate and Agreement of Partnership
CONSTRUCTION/REHABILITATION
Building Permit Issued
Final Plans and Specifications
Construction Start
50% Completion
Construction Completion

SECTION VI - DEVELOPMENT FINANCING

As part of the application, the owner must submit a commitment letter from a Michigan Magnet Fund investment partner listed below indicating the maximum debt financing ($______) they would provide if new market tax credits were not be available and the owner’s equity investment was increased. The letter must also indicate that but for a New Market Tax Credit Allocation they would not finance the project or that the owner would not invest in the low income census tract.

The letter should indicate that the investment partner is willing to make a total qualified equity investment (QEI) in aMichiganMagnet Fund subsidiary of $______either directly or as part of a leveraged financing and a projected closing date. Include details in Exhibit H. In a leveraged model indicate both the terms of the debt $______and the equity investment $______The letter should Include a commitment for all sources of financing including historic tax credits, brownfield SBT, and so on. The projected closing date is:______

NOTE: Magnet Fund investment partners include:

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Magnet Fund Application Rev 7

Updated August 30, 2005

Irwin Union Bank,

Huntington CDC,

Wells Fargo CDC,

Comerica Capital Advisors, Inc.,

Greenleaf Trust

First Independence Bank of Detroit

Charter One Bank

Fifth Third CDC

Key CDC

National City Bank

LaSalle Bank/Standard Federal Bank

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Magnet Fund Application Rev 7

Updated August 30, 2005

PART A. SUBSIDIES AND GRANTS

1.Will the project receive local governmental support in the form of tax abatement?

Yes. Describe:

No.

2.Will the project receive local subsidies or any type of local, state or federal government support?

Yes. Complete the following: (List all Federal, State and Local Funding)

Funding / Dollar Amount / Amount Included in QEI / Commitment Documentation Attached
Grant / Loan
SBT Tax Credit / Yes No
HOME Funds / Yes No
EDA / Yes No
Local Financing / Yes No
CDBG Program / Yes No
State Historic Tax Credit / Yes No
Federal Historic Tax Credit / Yes No
HUD 108 Loan / Yes No
BEDI Grant / Yes No
Foundation / Yes No
State TEDF Grant / Yes No
State Transportation Enhancement / Yes No
Other (Describe) / Yes No
Other: (Describe) / Yes No

TOTAL

No.

Insert copies of commitment Letters in Exhibit H

PART B. SOURCE & USES OF FUNDS

SECTION VII –SOURCE & USES OF FUNDS
USE OF FUNDS / Amount
LAND
Land Purchase
Closing/Title & Recording
Real Estate Expenses
Other Land Related Expenses
SUBTOTAL
BUILDING ACQUISITION
Existing Structures
Demolition (Exterior)
Other, Describe:
SUBTOTAL
SITE WORK
On Site
Off Site Improvement
Other: (Describe)
SUBTOTAL
NEW CONSTRUCTION/REHAB
New Structures
Rehabilitation
General Requirements
Builder Overhead
Builder Profit
Construction Contingency
Other: (Describe)
SUBTOTAL
Design Architect
Supervisory Architect
Real Estate Attorney
Engineer/Survey
Tap Fees/Soil Borings
Permits & Fees
Other, Describe:
SUBTOTAL
Builders Risk Insurance
Other Insurance
Interest
Loan Origination Fee
Loan Enhancement
Title & Recording
Legal Fees
Taxes
Other, Describe:
SUBTOTAL
Bond Premium
Credit Report
Loan Origination Fee
Loan Credit Enhancement
Title & Recording
Legal Fees
Taxes
Other: (Describe)
SUBTOTAL
Feasibility Study
Market Study
Environmental Study
New Market Tax Credit Origination Fee
New Market Tax Credit Professional Fees
Marketing/Rent-up
Cost Certification
Bridge Loan Exp. (During Construction)
Other: (Describe)
SUBTOTAL
Organizational
Bridge Loan Cost
Tax Opinion
Other: (Describe)
Other: (Describe)
SUBTOTAL
Developer Fee
Consultant Fee
Other: (Describe)
SUBTOTAL
Rent Up Reserves
Operating Reserves
Replacement Reserves
Other: (Describe)
SUBTOTAL
TOTAL USES OF FUNDS
SOURCES OF FUND (Assume Leveraged Model) / Amount / Total
QEI
Grant/Loan Proceeds (Section VI, a, 2) In QEI
Debt Committedto Investment Entity
(Assume Leverage Model)
Other (Describe)
NMTC Equity Investment
Total QEI
Non QEI Investment
Developer Equity Investment
Debt not In QEI
Grant/Loan Proceeds (Section VI, a, 2) not in QEI
Other:
Other:
Total Non QEI Investment
TOTAL SOURCES OF FUNDS

PART C:APPRAISAL

Provide a copy of an as built appraisal for the projected development in Exhibit I using the development plans and financial data provided herein.

SECTION VIII - ANNUAL PROJECT OPERATING EXPENSES

PART A. ADMINISTRATION / Project Costs
Accounting
Advertising
Legal
Leased Equipment
Management
Management Salaries & Payroll Taxes
Office Supplies/Postage
Telephone
Annual Compliance Fees
Other: (Describe)
Total Administrative Costs
PART B. OPERATING
Fuel (Heat/Water)
Electricity
Water/Sewer
Gas
Trash Removal
Security
Cable TV
Other: (Describe)
Total Operating Expenses
PART C. MAINTENANCE
Elevator
Extermination
Grounds
Repairs
Maintenance Salaries/Payroll Taxes
Maintenance Supplies
Snow Removal
Cleaning & Decorating
Other: (Describe)
Total Maintenance Expenses
PART D. FIXED
Real Estate Taxes
Payment in Lieu of Taxes
Other Tax Assessment
Annual Depreciation Expense
Insurance
Other: (Describe)
Total Fixed Expenses
TOTAL PROJECT EXPENSES:
PART E. ANNUAL REPLACEMENT RESERVES
PART F. ANNUAL DEBT SERVICE

SECTION X – PROJECT PRO-FORMA

PART A: Sources of Revenue:

Indicate all sources of Revenue including annual rents, annual tax increment payments (Include copies of brownfield plan and MEGA approval letter as part of Exhibit H, annual common area fees, other services, annual foundation grants, other source, etc.If a mixed use project, indicate revenue from each use. Indicate start up assumptions.

Sources of Revenue / Year 1 / Year 2
Total Revenue

Indicate the assumptions you used for the projections (MUST BE CARRIED OUT FOR TEN YEARS)

Projected Annual Percentage Increase in Income:%

Projected Annual Percentage Increase in Expenses%

Projected Annual Vacancy Rate Percentage:%

Projected Annual Percentage Increase in Replacement Reserves:%

Year 1 / Year 2 /

Year 3

/ Year 4 / Year 5
Total Revenue
Less Vacancy Amount
Effective Gross Income
Less Operating Expenses
Net Income
Plus Depreciation Expense
Net Operating Income (NOI)
Plus Tax Increment Financing
Net Cash Flow
Less Debt Service
Less Replacement Reserve
Net Cash Flow
Year 6 / Year 7 / Year 8 / Year 9 / Year 10
Rental Income
Less Vacancy Amount
Effective Gross Income
Less Operating Expenses
Net Income
Plus Depreciation Expense
Net Operating Income (NOI)
Plus Tax Increment Financing
Less Debt Service
Less Replacement Reserve
Cash Flow

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