Project SEV means The state equalized property tax value

TIF means Tax Increment Financing

Tax Increment Financing A Developer is proposing to build a new mixed-use project in Downtown Detroit. The Deve seeking an incentive investment from the City of Detroit through the City's Downtown Authority and the Brownfield Redevelopment Authority. The City first needs to do a TF analysis to determine the amount of Tax Increment that would be available to support t Downtown Development Authority Redevelopment Authority can currently capture 24 mills in taxation. loper is he project. The currently can collect 37 mills in taxation while the Brownfield The site to be developed presently has a market value of $500,000. The Pro Forma provided by the developer shows the following information: NOI: Year1: $500,000 ACAP Rate is 7.5% Year 2: $650,000 Year 3: $750,000 Year 4: $800,000 Year 5: $1,000,000 Based on the above information complete the following TIF Cash Flow analysis: Year 1 Year 2 Year 3 Year4 Year5 Net Project Market Value Project SEV Estimated TIF: DDA Millage (37 mills) Brownfield Millage (24 mills) Total TIF Revenue