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AUG. 28,2002 11:30AM ENTERS & ASSOCIATES EHLER & ASSOCIATES INC NO. 4597 P. 2 MEMORANDUM TO' Joel Hanson, City of Little Canada Mark Ruff Todd Hagen FROM; DATE; August 28, 2002 RE' Financing Recommendations for TIF District No. 3 -2 (Rice and Little Canada) We have completed a preliminary financial review W ehave court of the commercial f inann al evie W and recommendations redelopmme. t This the commas nu together for the City to consider for No. 3 -2 together wit or the carefully. numerous moving parts and s h we chuhn specific assumptions which should be reviewed carefully. Background Assumptions: Generally, the City has two sources of financing for the redevelopment. The first is the $3,000,000 Taxable Bond of 2001 and the second are the G.O. Ge Sherman Bond rental 2 nd $2,200,000 in land sale proceeds and new increment value from Cardinal, and housing and owner occupied housing to cover costs of the acquisition of the Venetian, C Cardinal, $850,000 , hk properties. o with Mr. Sherman has agreed to find the $22M in stages including the final payment in 2005 when the townhomes are con Mr. Sherman had originally intended to sell a revenue note to a third party $350,000 completely built. Mr. She in n had originally the latest negotiations, a revenue Sherman funds the carrying tt fund the final 00,00. costs of the final $IM a y has through h to finance a'he $the City does itself nt need the $3,000,000 in bondsnin 2001. The bond together with the first .$ ].2M in land sale �'> the City does not need to issue new bonds because it already has issued together for the select. proceeds from Mr. Sherman will meet the expected d costsrofland $cq si prinfipaleelaoed to Instead of additional $IM 51 Ming pod con g debt service on tl ea$3,000,000 i bo ds. The TIFlfiom the rental commercial is in a new TIF district and is pledged to the financing of the rental housing basis. The attached sources and uses in Exhibit 1 demonstrates the expected g on a The a acv Bonds ass and d u es in Exhibit iblt 1Bed n Pow pected costs. The remaining bond the U.S. Bank building and purchase chase of t property Power/Guerin property purchase one of the pay-as-you-go p p rty (estimates only p g would allow the City to y at least one p Y as- you -go notes which are at ve y an cover acquisition aline years of debt service. 'Y high interest rates and cover )Plus prepay at least pew years Mr. Sherman is proposing capitalized structure Y• We have assumed that the City g ro construct a new the first property, y, We assumed that theCtywill n need to bank pprixima bas, o ip onthepaymeit not used for the bank. pay app' Oximately $22$,000 in a premium payment b and the remaining Delonais property The second attachment called Exhibit 2 shows our assumptions for new tax increment on the north side without any development on the old bank building and remaining Delonais property.