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Cei f e �af4 C aizar /a <br />515 Little Canada Road, Little Canada, MN 55117-1600 <br />(612) 484-2177 / FAX: (612) 484 -4538 <br />April 10, 1991 <br />TO: Mayor Hanson and Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />RE: Potential for Home Buy Out Along Country Drive <br />MAYOR <br />Raymond G. Hanson <br />COUNCIL <br />Beverly Scalze <br />Bill Biesener <br />Rick Collova <br />Jim LaValle <br />ADMINISTRATOR <br />Joel R. Hanson <br />Here is some further information related to my memo of April 5, <br />1991. <br />*The excess increment generated today, assuming the <br />construction of Phases I through III, could support <br />total debt of $544,000. If the State Legislature achieves <br />a 4% commercial tax capacity factor, then the amount of <br />debt that could be supported based on present values could <br />decline to approximately $225,000 dependent on specific <br />factors that are unknown at this time. <br />*Related to previous statement is the policy question of <br />how much increment we should commit. The issues raised by <br />this question relate to the length of tax increment <br />collections in the district and risk factors assumed by the <br />City related to added debt, reduced flexibility, and <br />unknown future circumstances which could effect tax <br />increment collections. <br />*It is my belief that we should consider gaining control of <br />all parcels, including the Gagne homestead, in order to <br />ensure that we can attract the type of development <br />contemplated for this area. By not having total site <br />control at the time of initial acquisition, we could be <br />jeopardizing the financial viability of the project in the <br />future should we meet resistence on acquisition. <br />*Accurate market values for Phases II and III were not <br />available from Ramsey County as they need to have actual <br />building plans for them to complete the valuation process. <br />These plans are not available as of yet. Therefore, <br />estimates of valuations have been used to generate this <br />information. <br />Page" 1 <br />