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<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 approximately $890,908, less any amounts retained by the City for administrative or other <br />eligible in-district or pooling expenses. Aligning the level of assistance to the availability of projected revenues <br />provides a method of closing a portion of the financial gap and allows the public participation for the project to <br />remain at a reasonable level, while still providing a means for allowing the project to proceed as proposed. <br /> <br />Thank you for the opportunity to be of assistance to the City of Little Canada. Please contact me at <br />651.368.2533 or Mikaela.huot@bakertily.com with any questions or comments.