ELMHURST – The Elmhurst City Council examined at a side-by-side financial comparison of the final Hahn Street project proposals Monday, and one project appeared nearly twice as financially beneficial to the city.
According to a financial review by Kane, McKenna and Associates, Inc. (KMA), the Lincoln Property proposal would benefit the city more than either of Morningside Group's two concepts.
"Our approach was to look at some of the numbers as it related to what the project would be able to generate in term of taxes," said Robert Rychlicki, executive vice president at KMA.
The presentation estimated Lincoln Property would yield a net benefit of about $10.8 million to the city while Morningside's six-story concept would generate about $5.6 million or the city and the Morningside four-story concept would create about $16,000 net benefits for the city.
KMA looked at characteristics like the number of units in each project, forcast rents and the identified expenses for both retail and residential components to translate project parameters into investment terms.
For Lincoln's five-story proposal and both Morningside's four- and six-story proposals, Rychlicki explained 40 percent of the expected real estate tax revenue was subtracted because, by law, that money is reserved to pay per capita tuition reimbursement to the school district for new students.
"In the event that it's not needed, if there's less school age children within the project, that amount reverts back to the city for use in the TIF fund," Rychlicki said.
The financial review also looked at each project's expected sales tax revenue and land bid. Then subtracted estimated expenditures including TIF assistance requests.
The council will discuss the presentation Monday at a Committee of the Whole meeting.
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By the numbers
Estimated net benefits for the City of Elmhurst from the proposed Hahn Street projects, according to a consulting firm:
$10,824,033: Lincoln Property's five-story proposal
$5,667,594: Morningside's six-story proposal
$16,080: Morningside's four-story proposal