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operating expenses and debt repayment. Debt repayment is based on payments to be made to the lender with <br />remaining cash flow available as returns to the equity investor(s). <br /> <br />Conclusion <br />The developer has requested financial assistance related to construction of the new project and location of the <br />business in the City of Little Canada. Due to estimated costs for site improvements and other soils correction <br />development costs, the project is expected to experience an estimated $1,023,000 cost overrun prior to <br />construction commencing. <br /> <br />Tax increment financing is a tool that can assist with covering a portion of the extraordinary TIF-eligible costs <br />associated with the project. The level of financial assistance the developer has requested is less than what is <br />expected to be available. Additional financial analysis of the project is expected to occur to determine a <br />reasonable level of public assistance, while balancing any public improvement costs of the City. Since terms of <br />the assistance include pay-as-you-go as reimbursement for certain costs, the developer will be responsible for <br />obtaining all upfront funding sources and using cash flow from the project and any tax increment revenues to <br />repay obligations. Total gross estimated tax increment revenues that could be available for this project are <br />estimated to be in the range of $890,908 - $1,001,892, less any amounts retained by the City for administrative <br />or other eligible in-district or pooling expenses. Aligning the level of assistance to the availability of projected <br />revenues provides a method of closing a portion of the financial gap and allows the public participation for the <br />project to remain at a reasonable level, while still providing a means for allowing the project to proceed as <br />proposed. <br /> <br />We anticipate additional discussion at the City’s next workshop schedu led for Wednesday, September 22 <br />regarding an appropriate level of tax increment assistance for the project based on: <br />1) Availability of revenues <br />2) Need for public assistance <br />3) Identified public improvements <br /> <br />Thank you for the opportunity to be of assistance to the City of Little Canada.