07-09-2003 Council Agenda - Laserfiche WebLink

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APPENDIX F BUT /FOR QUALIFICATIONS BUT / FOR ANALYSIS Current Market Value - Est. New Market Value - Est. Difference Present Value of Tax Increment Difference Value Likely to Occur Without Tax Increment is Less Than: 2,800,000 10,990,000 8,190,000 930,700 7,259,300 7,259,300 The City Council does not believe that the proposed property will further develop without public assistance. Despite freeway visibility, the access to and from the freeway is longer and more difficult than is common for retail facilities. The site is occupied by a former Knox lumber facility that was vacant until utilized for a wholesale gypsum board dealer. A historical review of the market value of the property for the past several years demonstrates that the value of the property has decreased in the past three years. The City expects that this trend will continue. In addition to demolition costs and poor site layout due to the former use of the property as a lumber yard, the major challenge to development of the site will be the cost of soils correction due to unstable soils. The proposed projects have a market value of over $10,900,000, assuming development of both phases of the project. For phase I of the project, the market value increase is over $4,000,000. Due to historical market values and condition of the site layout and buildings, the City believes that the increase in value of the site, even with slight inflation, will not be more than $1,000,000. APPENDIX p_t