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'16 July 1986 <br />Page Three <br />The tax increment parcel would include Lots D, G, and H of Registered Land Survey <br />No. 68. This parcel contains approximately 19,500 square feet of area and is <br />presently proposed to support an 6,000 square foot office building. The estimated <br />construction cost of the building is $45.00 per square foot of floor area. <br />The following calculations show tax increment projections based on two land values. <br />The first projections are based on the assessor's estimated market value, the <br />second set of projections reflect a current land acquisition cost of approximately <br />$1.36 per square foot. The acquisition cost was calculated based on the applicant's <br />land acquisition cost of $80,000 minus an estimated $55,000 value of the house <br />existing on the parcel. <br />TAX INCREMENT GENERATION - 6,000 SQUARE FOOT OFFICE <br />Low High <br />Value Value <br />Market Values: Land $15,400 <br />Building 270,000 <br />$285,400 <br />Assessed Value x.43 <br />Mil Rate 122.022 <br />Tax Generation <br />Minus Frozen Base <br />Credit 5% for Debt Coverage <br />Tax Available for TIE <br />$122,722 <br />x.122022 <br />$14,975 <br />-1,342 <br />$25,000 <br />270,000 <br />$295,000 <br />x.43 <br />$126,850 <br />x.122022 <br />$15,478 <br />-1,342 <br />$13,633 $14,136 <br />682 706 <br />$12,951 $13,430 <br />It should be noted that these calculations reflect a 43% assessed value ratio. If <br />this is the applicant's only commercial property or highest valued commercial property <br />in Ramsey County, the applicant may choose the special commercial assessment rate of <br />28% of the first $60,000 of market value and 43% of the balance of market value. <br />BOND SIZE <br />The bond size is being calculated at a 9% interest rate to provide a conservative <br />projection of what project costs can be supported. A lower interest rate may be <br />available at time of bond sale. <br />47 <br />