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The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In <br />specific circumstances, the services of a professional should be sought. Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member <br />of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2018 Baker Tilly <br />Virchow Krause, LLP <br /> <br />Conclusion <br />Per the submitted application for assistance, the developer has requested approximately $5.3 million over 15 <br />years as related to development of the project site and construction of a senior care campus. Through the <br />submission of the tax increment financing application and supporting financial information, the developer has <br />indicated that the project as proposed would not occur on the current site without financial assistance from the <br />City due to extraordinary costs associated with acquisition of the additional properties and site <br />development/infrastructure improvements. Following thorough review of the project financing components, we <br />have determined that tax increment financing assistance is necessary for the project to proceed as proposed. <br />The developer is not able to obtain the maximum financing amount without the additional revenue stream <br />provided through tax increment necessary to finance the entire project cost amount of $77.9 million and the <br />projected returns are not anticipated to be feasible. <br /> <br />The following table outlines the TIF-eligible costs as identified by the developer, and those that the City may <br />consider reimbursing for based on the scope of the entire project. <br /> <br />Type of TIF Eligible Cost TIF-Eligible Costs Potential Reimbursable Costs <br />Property Acquisition $3,960,000 $1,715,000 <br />Demolition $30,000 $30,000 <br />Site Development $5,800,000 $1,855,000 <br /> <br />Total $9,790,000 $3,600,000 <br /> <br />The estimated revenues provided in this memo are based on the assumptions outlined previously and <br />demonstrated need of the developer. We have identified several factors that may impact the amount of <br />assistance provided over the term of the TIF district and are as follows: <br /> <br />• City fees/fee credits <br />• Future value increases <br />• Annual market value inflator <br />• Total construction costs (including hard and soft costs) <br />• Land sale proceeds <br /> <br />Thank you for the opportunity to be of assistance to the City of Lino Lakes. Please contact me at 651.223.3036 <br />or 651.368.2533 or mikaela.huot@bakertilly.com with any questions or comments.