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Home My Public Portal About2016-07-11-TIF-TrumanHotelDoc-PuriGroup-Final Presentation Group of Enterprises EXCELLENCE IN HOSPITALITY 21 Years in Hospitality in MID MO H1iiIn , Preferred Developer with 0 �[�arrienlnn -Hilton Worldwide -Intercontinental Hotel Group -Marriot International DC)LIBLETREE -Choice Hotels International eY MILTOi1 JEFFIR€1}M CITY Lodging { -534 rooms in Jeff City Market IILF.I.R °. {ITL -272 rooms in Columbia Market 'itt verview Employ 450 people in Mid MO IIII I.Yl.ii ffM _ IaTP • UT SUIT �Groupof Enterprises I'IT 1111 } PIM DRILL JEFF CITY COMMUNITY PG SPONSNORED CHARITIES • Special Learning Center • Annul Fund Raiser 7 years at $5,000.00 per year • Jefferson City Public Schools Fundraiser — Two years $1000.00 • Special Olympics of Missouri — Over the Edge 5 Years at $5,000 per year • Apples For Teachers Program — Annual Banquet; 5 Years $3,000 per year • Boy and Girls Club OF JEFFERSON CITY — Building of new Club $2500.00 • Safety Net MO: Taking care of Children and Spouse of Local Law Enforcement who have lost their lives in the line of duty. — $4,400 —$84,400.00 DONATED to LOCAL COMMUNITY BACKGROUND OF PROJECT • In 2013, Frustrated Owner Contacted us to Procure Truman — This "PRIME LOCATION" on sale for several years, to no Avail — Inquired if we would be interested in purchasing • Efforts at upgrading • Efforts Failed — Heavy Losses-Doors Closed • New Idea Takes Birth — Encouragement from local community • Idea Presented to City — Good Project — Definitely what TIF statute was designed to accomplish — BUT it must meet all criteria • Idea Presented to Financier — Good Project — Will Finance Provided TIF is approved • SO THE PROCESS BEGAN TRUMAN HOTEL PROJECT TAX INCREMENT FINANCING PROJECT DEVELOPMENT COST PROJECT PHAS CO TERM* TOTAL PROJECT COST $56, 798, 300 2016 - 2039 RPA 1 $22, 095, 500 2016 - 2018 RPA 2 $34, 702, 800 2019 - 2020 *PROJECTED TIME LINE; TERM CAN CLOSE SOONER SOURCE OF FUNDS SOURC AMOUNT I PERCENTAGE a PURI GROUP (PG) $47,908,832 84.35% $8,889, 468 15.65% TOTAL $56, 798, 300 100% TIF** - REIMBURSEMENT ONLY— Generated From Revised Tax Rates PG Financer Extends Project Funds Based on TIF Reimbursement Only INITIAL PROPOSAL — STATUTORY TIF ALLOWS FOR RECAPTURE BY DEVELOPER OF: • 100% INCREASE IN AD VALOREM (PROPERTY) TAXES (PILOTS) • 50% OF SALES TAX FROM INCREASED ECONOMIC ACTIVITY — FOOD AND BEVERAGE SALES — Opposed by JCPS • Wanted the "City of Jefferson" to pay its "fair share" • Did not want 100% of Increase to be recaptured — Developer went back to City to address JCPS Concerns • Find a way that Jeff City could increase its contribution — Thereby Reducing the PILOTS contribution • CITY and DEVELOPER found a way REVISED PROPOSAL • 50% of Sales Tax from Increased Economic Activity — Excluding Room Sales Tax • In Exchange for Annexing the Hampton Inn ( HI ) and Comfort Suites(CS), City will divert 50% of lodging tax generated from project to TIF. • PILOTS = Increased Property Taxes — 50% of Lodging Tax Generated by NEW Projects. • Estimate PILOTS will be reduced 60%; �$5 .3M • NO COINCIDENCE : HI and CS Generate $5 .3M over TIF term . WHAT DOES THIS MEAN ? • JCPS gets immediate Benefit — Pilots Provide only 40% of overall finance • CVB Gains Revenues to Help Tourism — Lodging Tax ( LT) Injection is replaced By HI and CS — LT Collections Increase During TIF • 50% of LT from new project not redirected — LT will continue to collected Beyond TIF Term from all four Hotels — You and I may not be around but the LT surely will Economic Benefit Increase in Tax Revenue to Community • Increased Tax Revenue — State $11,426,349 • Increased Tax Revenues — City $ 6,198,798 • Increased Tax Revenues — County $ 3,675,177 • Increased Tax Revenue — JCP Schools $ 6,938,207 • Increased Tax Revenue — Road & Bridge $ 507,291 • Increased Tax Revenue — Library $ 375,783 • Increased Tax Revenue — Spcl. Services $ 169,641 • Increase in Lodging Tax-City $ 6,783,664 • Increase in Utility Tax $ 197,285 • INCREASE IN TAX REV TO Comm. $36,272,195 *Monies are Net of Redirected TIF revenue *Monies do not include property tax already being collected and that will continue to be collected and distributed to each jurisdiction. $722K *LODGING TAX value does not include the $5,250, 000 added from Hampton Inn and Comfort Suites annexation. COLLATERAL ECONOMIC BENEFIT • Indirect benefit: Payroll Distributed $ 67,278,092 • Increase in TAX REV to COMMUNITY $ 36,272, 195 • Increased spending attributed to job creation + • Due to increase in traffic + — Increased sales taxes of surrounding business — Retail shop fronts, gas stations, restaurants, bars • Increased prop. values around development + • Monies Injected into economy $102,559,287++ * Does not include monies from lodging tax paid in by Hampton Inn and Comfort Suites. ($5,250,000) . TIF CRITERIA — Area is Blighted — Plan Conforms to Comprehensive Plan — Estimated dates are not greater than 23 years — Relocation Plan has been developed — BUT FOR TEST Concludes Project not feasible w/o assistance • This was the result of lowering Acquisition Cost to the Appraised Value derived by Cole County Assessor's — Plan does not include development of gambling establishment. TRUMAN PROJECT MEETS ALL CRITERIA TRUMAN TAX INCREMENT FINANCING • NOTABLE DIFFERENCES — THIS IS A PAY AS YOU GO TIF • Developer finances ENTIRE PROJECT UP FRONT • Developer takes on ENTIRE Risk of Project • Developer pays for cost of all expenses incurred • Developer risks that revenue generated will be enough to allow for reimbursement NO RISKS TO TAXING JURISIDCTIONS • NO BONDS will be issued to Finance Project • All Jurisdictions still Collect Current Value of Property tax ($722k) • All Jurisdictions will get the surplus — Surplus = 50% of Lodging Tax Generated from new properties • CITY AND CVB WILL GET LODGING TAX FROM ANNEXATION of COMFORT SUITES AND HAMPTON INN ^'$5, 250, 000. • Increase in Personal Property Tax will be captured by all Jurisdictions $673, 941 • Jurisdictions are making a promise to let developer reimburse itself if project generates enough revenue • Developer HAS ALL the Risk DEVELOPMENT REMOVES BLIGHT • Removes Social Liability • Removes Economic Liability • Removes a risk to public health and safety • Creates a productive use of land • A catalyst project for continued growth • Will support neighboring commercial development • Will be a commercial traffic generator for retail store fronts, gas stations, and restaurants. ECONOMIC BENEFIT FROM TIF • Direct Injection of $ 102 , 559 , 287 + into LOCAL ECONOMY Does not include monies from lodging tax paid in by Hampton Inn and Comfort Suites. ($5,250,000) . CONLCUSION - Now you have the facts - Request a favorable decision to our proposal - Project will be catalyst for economic growth -Growth that has been lacking for last 20 years. -Other MID MO Cities have more than doubled in size in the same time, we need to take steps to do the same. - Hope you will take this step with me to usher in new hope for a better tomorrow.