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• <br />• <br />City of Lino Lakes <br />September 20, 2004 <br />Page 3 <br />grading associated with the project. The following proposal has been negotiated in response to <br />their initial request for assistance. <br />TABLE 3 <br />TIF, Century Farms, County funds, Fairview land sale proceeds; <br />to pay Lake Drive im provements <br />$2,401,521 <br />TIF assistance to provide a land write down <br />$2,700,000 <br />Livable Communities grant <br />$ 450,000 <br />Improvement Bonds to pay infrastructure costs <br />$5,382,865 <br />Total assistance package <br />$5,551,521 <br />Based on this proposal we have estimated approximately 16 years of tax increment to pay the <br />TIF expenses. Attached is a TIF analysis based upon the following primary assumptions: <br />• $57.1 million of new value constructed by 2009 <br />• No inflation to new values through the term of the di strict <br />• Present value rate of 6% <br />You will note earlier in this memo that the developer estimated the in- district value to be in the <br />range of $55,785,000 - $69,855,000, with all but about $2 million of construction to be <br />completed in 2006. For the purpose of creating a conservative analysis, we used a reasonable <br />low side of their range, and extended their buil d -out to 2009, in addition to a 0% inflation rate on <br />new value through the life of the T IF District. <br />Deal Structure <br />The deal is proposed to be structured and financed through a variety of tax increment bonds <br />and pay -as- you -go notes, special assessment bonds, internal funding, a nd Metropolitan Council <br />grants. <br />The general financing structure is proposed followed by a narrative expl anation of each: <br />TABLE 4 <br />Sources <br />A) <br />GO Tax Increment Bonds to pay for a portion of <br />the Lake Drive improvements <br />$2,285,999 <br />TIF <br />B) <br />Improvement Bonds to pay infrastructure costs <br />$5,382,865 <br />Assessments <br />C) <br />Tax Increment pay -as- you -go note to Developer <br />$1,000,000 <br />TIF <br />D) <br />Internal loan to Developer — A portion to be <br />reimbursed by Met Council Grant, if not, then <br />reimbursed with TIF <br />1,700,000 <br />TIF <br />*Bond <br />A) GO Tax Increment Bonds to pay for a portion of the Lake Drive improvements <br />