This ordinance approves the issuance of Chapter 100 Bonds by the City for the 39th Place Apartments project (also known as the Ansley Apartments project) to be located near the southeast corner of the intersection of Jackson Drive and East 39th Street in the City. In connection with the issuance of the Bonds, the ordinance also approves a Plan for the project.
As further described in the plan, the project to be financed by the Bonds consists of a 280-unit luxury multi-family development consisting of 5 apartment buildings (each a 56-plex building with attached garages), a pool, a clubhouse, a fitness center and a dog park, with associated parking areas and greenspace.
The transaction structure will involve conveyance to the City of the real property and improvements financed with the proceeds of the Bonds (the “Project”), including the existing real property at the site. The Project will be leased by the City to 39th Place Apartments, LLC, a Missouri limited liability company, or another affiliate of The Spanos Corporation (the “Company”). The structure will result in tax abatement for the project starting in 2020 and continuing through 2033 at the rate of 50% of the taxes that would otherwise be due on the Project. Payments in lieu of tax will be calculated during 2018 (if the Bonds are issued in 2018) and 2019 to equal the taxes otherwise due on the Project during those years, resulting in no abatement for such years. The transaction will also provide a sales tax exemption for construction materials purchased and incorporated into the Project.
The methodology and assumptions for calculating the payments in lieu of taxes and the amounts to be paid are set forth in the plan and cost benefit analysis for the project.
The Bonds and the interest thereon will be limited obligations of the City payable solely out of the payments to the City under the lease associated with the transaction between the City and the Company.