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GOLOMARK <br />PROPERTY MANAGEMENT I N C. A M O° <br />November 10, 1997 <br />Mr. Joel Hanson <br />City Administrator <br />City of Little Canada <br />515 Little Canada Road <br />Little Canada, MN 55117 -1600 <br />Dear Mr. Hanson: <br />This is to conf 1n1 our conversation today regarding the payment in lieu of taxes issue. It <br />is my understanding that a 14% annual payment to the City of the future decrease in real <br />estate taxes, if any, will keep the City whole. The Montreal Courts project proposes that <br />it increase it's PILOT payment from the 10% discussed earlier to the 14% amount. We <br />both understand that there are may arbitrary and uncertain considerations associated with <br />this issue such as inflation or deflation, tax capacity and the actual changes in tax <br />classifications versus what we assume it will be. However, by offering the PILOT <br />payment of 14 %, the City will remain whole on the amount it currently receives for taxes. <br />I think this is a fair proposal especially given that the real estate taxes will likely go down <br />in the future under any scenario. Under the tax exempt financing scenario, the City <br />preserves it's ability to maintain it's tax revenue from the project. <br />I believe that we now have a fair and meaningful proposal package that as a whole meets <br />the goals of all parties. Would you please revise your tax analysis to reflect this increased <br />PILOT payment and provide it for consideration to the Mayor and Council Members. <br />Page 7 <br />Minneapolis Office • 5001 West 80th Street • Suite 745 • Bloomington. Minnesota 55437 • (612) 832 -0737 • Fax (612) 832 -5412 <br />