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V. FINANCING PLAN <br />A. Estimated Public Development Cost <br />The following costs estimate the City's expenses <br />with regards to their participation in the Gideon <br />Ponds Center, Inc. Housing Project: <br />1. Budget <br />Land Acquisition 270,000 <br />Site Improvement 430,000 <br />Developer Assistance 700,000 <br />Administration /Legal 70,000 <br />TOTAL PROJECT EXPENSE 770,000 <br />The items of cost and the costs thereof shown above <br />are estimated to be necessary based upon the <br />qualified appraisers, consultants, legal and cost <br />information now available. It is anticipated that <br />the items of cost and the costs thereof shown in <br />each category above may decrease or increase, but <br />that the total project cost will not exceed the <br />amount shown above. <br />The total administrative expense is defined in <br />Minnesota Statutes Section 469.176, Subd. 3 of the <br />TIF Act and is estimated to be $70,800, which <br />amount does not exceed 10% of the total tax <br />increment expenditures. <br />B. Source of Revenue and Tax Increment Calculation <br />The City proposes to capture the tax increments generated <br />by the proposed housing project to pay obligated project <br />expenses. No ad valorem tax levy is necessary to finance <br />the City's obligations. No City general obligation bonds <br />will be sold to finance the City's obligation. <br />1. Tax Increment Calculation <br />The project assessor estimated that the proposed <br />facility will have an estimated market value of <br />$4,900,000 generating approximately $118,377 in <br />annual taxes. These were computed as follows: <br />11 <br />Page 36 <br />