05/05/2008 Council Packet - Laserfiche WebLink

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City of Lino Lakes, Minnesota Legacy Project April 30, 2008 Page 6 • That the value of the hotel and tax credit housing will increase at least 2% by pay 2012, and 2% per annum each year thereafter For the town home build -out assumption, if the type of use were to change it would be important to relate the proposed use to tax capacity value, not just assessed value, due to the various class rates and how they relate to the formula for calculating tax increment. For example, $20.2M of tax credit rental housing at .75% class rate would produce less tax increment than $20.2M of owner occupied town homes at 1c/0 class rate. Conversely, $20.2M of commercial value at 2% class rate would produce more tax increment than the owner occupied town home assumption, as would $20.2M of market rate rental housing at 1.25% class rate. Changes in classification rates for any of these types of properties may significantly alter the outcome. Of all the conservative projections used for this analysis, one is most significant — that is our assumption that full build -out of District 1 -11 will be no greater than $31.4M. The geographic land area of the district supports significantly more development than $31.4M and the original plans show that with development of ancillary lots, full build -out may be as high as $60M. It is likely that development beyond $31.4M will occur, sometime prior to the decertification of the district. However, no additional increment beyond what is created by $31.4M of market value is assumed in any of the scenarios provided herein.