Updated Response, p 15

proposal. PC-CCT/TCC members recognize it will be more difficult to garner community support for a for-profit venture.
PC-CCT has reviewed dozens of Grants for the rehabilitation of the site, and has narrowed potential grant proposals to approximately 30 sources, primarily from preservation sources. PC-CCT/ TCC, LLC will further broaden the search in weeks to come to include environmental redevelopment, sustainable development, job growth, and arts and cultural development sources. Based on recent discussion with adaptive reuse experts, we feel we underestimated grant potential in our 2-18-10 submission. Furthermore, grant writing cannot move forward until the DDA has made a commitment to sell the complex to TCC. PC-CCT/TCC has engaged the services of several students in EMU’s preservation program, who are learning to write effective grant proposals. They are ready to ramp up their efforts as soon as a sales agreement is executed. Grant writing and the application process takes time. TCC therefore does not count heavily on grants during initial phases of renovation. In total, we feel grants can account for as much as 20% of construction related expenses.
PC-CCT has investigated Tax Credits (members attended previously referenced workshop and additional workshops at the Michigan Historic Preservation Network Conference) for rehabilitation and will leverage this resource toward the redevelopment as well. Based on information received to date, TCC, LLC includes substantial tax credits allowances to the funding for the project. While there is a possibility that tax credits could be as high as 40% for some portions of the project, we have used a maximum of 20% for construction phases.
PC-CCT and/or TCC, LLC will organize some Fundraisers during the course of the redevelopment, targeted specifically for the installation of the 4000 SF green roof that will surround the Livery Apartment patio. While the installation would be difficult to financially justify as part of the Apartment development, the design team continues to view this as a priority for the project, and will foster community support to make the vision a reality. The patio space will be fully functional, regardless of whether the green roof is installed.
Lease Income is a significant factor in the overall project value through the end of renovations and operations through the end of 2013. However, lease income is a relatively small percentage (8% maximum) until Phase 5 (Loose Ends and Green Roof), where it accounts for 36% of that phase’s value.
Proposed Project Value Funding Source Summary below demonstrates projected contribution split between the eight projected value contribution sources for the redevelopment of The Chelsea Connection, including operations through the end of 2013. Projections are based on project phase scope as described in Additional Information – Schedule and Phasing, and costs as summarized in Phasing Summary of Timeline, Funding, Debt and Value in Supporting Information Appendix.
Note, the funding model was developed anticipating 4-15-10 approval by the DDA, and that closing would occur before any construction would occur. Proposed interim lease agreement between the DDA