04-25-1990 Council Agenda - Laserfiche WebLink

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It is anticipated that the estimated costs described above will be financed from tax increments from Tax Increment Financing District No. 4. *As an alternative to issuing Tax Increment Bonds, the City reserves the right to pay for the above - listed public costs as tax increments are generated and available, thereby eliminating the need for the issuance of Tax Increment Bonds. In such case the capitalized interest amount will be used to finance other capital costs within the District. SUPPORTIVE DATA FOR THE ESTIMATED COSTS OF IMPROVEMENTS FOR THE DISTRICT UNDER DEVELOPMENT PROGRAM ITEM BASIS FOR ESTIMATE LAND ACQUISITION Estimates by Developer ADMINISTRATION 10% maximum allowed for local administration pursuant to Minnesota Statutes, Section 469.174, Subdivision 14, "Administrative Expenses ", includes amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants PROFESSIONAL SERVICES Estimates for project costs for legal designing, appraisals, and marketing INTEREST ON BONDS PRIOR TO RECEIPT OF TAX INCREMENT TO FULLY FUND PRINCIPAL AND INTEREST Assumes 9.75% interest rate Subsection 1.09. Estimated Amount of Bonded Indebtedness. It is anticipated that approximately $895,000 of bonded indebtedness will be incurred with respect to this portion of Development District No. 1. However, the City wishes to reserve the right to pay for the public costs listed in Subsection 1.8 as tax increments are generated and become available, in lieu of issuing tax increment financing bonds. Subsection 1.10. Sources of Revenue. Land acquistion, and other costs outlined in the Estimated Cost of Project (Subsection 1.8. above) will be financed through the annual collection of tax increments. 1556 1 -5 Page 25