04-13-1988 Additions II - Laserfiche WebLink

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Gardner Bros. Homes April 11, 1988 Page 2 PROJECT COSTS /PROJECT ANALYSIS I have reviewed the estimated project costs prepared by Gardner Bros. Homes. Based upon our experience with Ramsey County, we have projected the County's market value of assessments as follows: Land ($50,000 /Acre) Office (36,000 s.f @ $40.00 p.s.f.) Warehouse - -9,000 s.f. @ $15.00 /p.s,f.) Estimated Assessed Valuation Estimated Annual Taxes Estimated Annual Increment $ 150,000 1,440,000 135,000 $1,725,000 $ 732,750 $ 87,900 $ 80,000 CITY FINANCIAL ASSISTANCE Tax Increment Financing The City has established a policy for providing Tax Increment Financing assistance for a project of this type. The City will contribute up to 10 percent of the future market value of the project for project financing. Eighty percent of this amount will be a project land cost "write down" and 20 percent of the funds will be lent to the project over a ten year time period at no interest. Based upon our analysis of the project, we would estimate that the terms of the tax increment as follows: Total Future Market Value Total Future Assessed Value Estimated Tax Increment Insertion Project "Write Down" 10 Year, No Interest Loan ($3,450 /Year /10 Years) Page 5 $1,725,000 $ 732,750 $ 172,500 $ 138,000 $ 34,500