TIF Joint Review Board

Lexington Prospect Heights Annual Cash Flow Analysis--WITH TIF Month Totals 2021 2022 2023 2024 2025 2026-2045 ABSORPTION Sales 69 12 24 24 9 0 Closings 69 0 24 24 21 0 CASH SOURCES Sales -- Base 21,942,000 0 7,632,000 7,632,000 6,678,000 0 Sales -- Upgrades 1,755,360 0 610,560 610,560 534,240 0 Total Sales 23,697,360 0 8,242,560 8,242,560 7,212,240 0 Net Proceeds from TIF Note Sale [1] 4,800,000 0 0 0 0 4,800,000 0 Annual TIF payments [2,3] 2,608,092 0 0 65,540 197,200 53,747 2,291,605 CASH USES HARD COSTS Site Acquisition 2,100,000 998,500 804,000 204,000 93,500 0 Land Development 5,464,310 3,975,574 120,000 120,000 1,248,736 0 Direct Costs -- Base 11,915,000 863,406 4,144,348 4,144,348 2,762,899 0 Direct Costs -- Upgrade 1,228,752 35,616 427,392 427,392 338,352 0 SOFT COSTS Model Area Dev. Costs 348,351 50,978 101,956 101,956 93,460 0 Indirect Construction 1,312,834 192,122 384,244 384,244 352,224 0 Fire Protection District Impact Fee 688,000 688,000 0 0 0 0 Potential School fees ($3,000 per unit) 207,000 207,000 0 0 0 Potential school impact fee Library impact fee ($12 per person) 2,347 2,347 0 0 0 Sales & Marketing 1,646,967 241,019 482,039 482,039 441,869 0 G&A 350,721 51,325 102,650 102,650 94,096 0 Corporate Overhead 5.0% 1,184,868 173,395 346,791 346,791 317,891 0 Closing Costs 149,118 0 51,867 51,867 45,384 0 Legal and professional fees 400,000 400,000 0 0 0 0 Loan Fees 20,891 20,891 0 0 0 0 Interest -- A&D Loan 207,337 43,875 91,689 53,430 18,344 0 Interest -- Construction Loan 103,388 3,837 35,961 35,961 27,628 0 TOTAL 27,329,882 7,947,886 7,092,937 6,454,677 5,834,382 0 0 PROFITS Lexington Homes Cash Flows 3,775,570 (5,215,249) 590,258 1,006,307 248,902 4,853,747 2,291,605 Lexington Homes IRR * 10.70% * Equity IRR calculated per monthly cash flows. Annual cash flow shown here for presentation clarity. TIF Revenue Summary % of All TIF Revenue Annual TIF Revenue Collections--Townhomes 18,995,000 0 0 113,000 340,000 556,000 17,986,000 Annual TIF Revenue Collections--All Other PINs 2,084,000 0 0 17,000 17,000 17,000 2,033,000 Annual TIF Revenue Collections 21,079,000 0 0 130,000 357,000 573,000 20,019,000 TIF payments to TIF Note issued Feb 2025 8,410,000 0 268,733 8,141,267 40.7% Annual distribution to Lexington 2,608,092 0 65,540 197,200 53,747 2,291,605 11.4% Distributions to school districts 7,598,000 0 45,200 136,000 222,400 7,194,400 Distributions library district 379,900 0 2,260 6,800 11,120 359,720 TIF revenue for City use 2,084,000 0 17,000 17,000 17,000 2,033,000 Total TIF towards public expenditures 10,061,900 64,460 159,800 250,520 9,587,120 47.9% [1] Assumes Developer proceeds $4.80 million from TIF Note sale in Feb 2025 (principal $5.00 million, 4% issue costs, 5% int rate), with present value in 2021 of $3,949,000. [2] Annual TIF payments to Developer in 2022-2045 (excluding TIF Note, are estimated to total $2,608,092, with present value in 2021 of $1,238,000 [3] Present value in 2021 dollars of the total Developer TIF assistance is $5,187,000 or $75,000 per unit, equal to 19.0% of total project costs. 2/2/2021  Lexington Prospect Heights Annual Cash Flow--WITHOUT TIF Month Totals 2021 2022 2023 2024 2025 ABSORPTION Sales 69 12 24 24 9 0 Closings 69 0 24 24 21 0 CASH SOURCES Sales -- Base 21,942,000 0 7,632,000 7,632,000 6,678,000 0 Sales -- Upgrades 1,755,360 0 610,560 610,560 534,240 0 Total Sales 23,697,360 0 8,242,560 8,242,560 7,212,240 0 CASH USES HARD COSTS Site Acquisition 2,100,000 998,500 804,000 204,000 93,500 0 Land Development 5,464,310 3,975,574 120,000 120,000 1,248,736 0 Direct Costs -- Base 11,915,000 863,406 4,144,348 4,144,348 2,762,899 0 Direct Costs -- Upgrade 1,228,752 35,616 427,392 427,392 338,352 0 SOFT COSTS Model Area Dev. Costs 348,351 50,978 101,956 101,956 93,460 0 Indirect Construction 1,312,834 192,122 384,244 384,244 352,224 0 Fire Protection District Impact Fee 0 0 0 0 0 0 Potential School fees ($3,000 per unit) 0 0 0 0 0 Library impact fee ($12 per person) 0 0 0 0 0 Sales & Marketing 1,646,967 241,019 482,039 482,039 441,869 0 G&A 350,721 51,325 102,650 102,650 94,096 0 Corporate Overhead 5.0% 1,184,868 173,395 346,791 346,791 317,891 0 Closing Costs 149,118 0 51,867 51,867 45,384 0 Legal and professional fees 400,000 400,000 0 0 0 0 Loan Fees 20,891 20,891 0 0 0 0 Interest -- A&D Loan 207,337 43,875 91,689 53,430 18,344 0 Interest -- Construction Loan 103,388 3,837 35,961 35,961 27,628 0 TOTAL 26,432,535 7,050,539 7,092,937 6,454,677 5,834,382 0 PROFITS Lexington Homes Cash Flows (2,735,175) (4,317,902) 590,258 940,767 51,702 (0) Lexington Homes Equity IRR * -55.06% Project Overall Return -10.35% * Equity IRR calculated per monthly cash flows. Annual cash flow shown here for presentation clarity. 2/2/2021