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Gardner Bros. Homes <br />April 11, 1988 <br />Page 3 <br />The City's policy assumes that an additional five percent of the <br />TIF amount would be set aside for park development. In this <br />case, there would be $86,250 available for land acquisition and <br />park development. <br />The City would be providing a total of $258,000 plus project pro- <br />ceeds. Preliminary analysis of the bond funding that are <br />required to support this project is as follows: <br />Estimated Proceeds $ 260,000 <br />Financing and Placement Costs $ 35,000 <br />Capitalized Interest $ 60,000 <br />Discount $ 5,000 <br />Total Bond Issue $ 360,000 <br />Estimated Bond Term <br />(Assumes 9 Percent Taxable Bond With <br />$80,000 Annual Increment) <br />8 - 9 Years <br />We have not conducted an analysis of the inflationary rate which <br />must be applied to an economic development district. This ana- <br />lysis should be conducted prior to the negotiation of the final <br />amount of TIF assistance, as this will have an impact on the <br />planned available increment. The project also has some uncer- <br />tainty, given the current legislative proposals pending. <br />The proposed legislation would not allow a City to participate <br />in an economic development district with a commercial or office <br />development. This issue should be tracked to determine project <br />eligibility. <br />Page 6 <br />