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<br />City of Lino Lakes
<br />September 20, 2004
<br />Page 7
<br />$7,917,754
<br />Land Acquisition
<br />$225,000
<br />Third Party Reports
<br />$900,000
<br />Municipal fees
<br />$648,324
<br />Other City Charges
<br />$750,000
<br />Grading
<br />$1,520,000
<br />Financing Costs
<br />$5,382,865
<br />Assessments
<br />$17,343,943
<br />TOTAL
<br />The developer has agreed to provide a minimum 20% of affordable units within the project.
<br />Additional definition of the term "affordable" will be contained within the development
<br />agreement.
<br />On the issue of the distribution of rental units vs. owner occupied, the developer has agreed to a
<br />range of rental units between 40% and 50% of the total. Their initial estimate is 192 rental units
<br />out of a total 450 units, or 4 3%
<br />Tax Revenue Comparisons
<br />As stated earlier in this memo, the Legacy project is unique because ap proximately half of the
<br />new value proposed wi II lie outside TIF District 1 -11. If we only use the minimum projected
<br />values the amounts are:
<br />• Outside the TIF District
<br />• Inside the TIF District
<br />$ 60,131,100
<br />$ 55,785,000
<br />TOTAL $115,916,100
<br />By comparison, the Marketplace development, on about the same size parcels (40 acres), is
<br />projected to have a market value upon full buil d -out of approximately $33,500,000. This
<br />comparison shows that the value projected outside the TIF District alone, is almost 2 times
<br />greater than the Marketplace development at full build out, and the total projected value (in
<br />district and out) is about 3.5 times greater. Estimated tax revenues for each of the two
<br />developments, after deducting for fiscal disparities, are shown in the following table:
<br />TABLE 7
<br />Marketplace
<br />Legacy at Woods Edge
<br />City
<br />$175,858
<br />City
<br />$554,019
<br />Anoka County
<br />$146,472
<br />Anoka County
<br />$461,445
<br />Forest Lake SD
<br />$86,800
<br />Forest Lake SD
<br />$273,452
<br />Other
<br />$26,503
<br />Other
<br />$83,495
<br />TOTAL
<br />$435,633
<br />TOTAL
<br />$1,372,411
<br />The unique distribution of TIF and non -TIF tax base provides significant benefits to the City as
<br />the project will, immediately upon completion, generate tax base w hich benefits all Lino Lakes
<br />taxpayers. The developer has shown that without assi stance, neither the TIF tax base nor the
<br />non -TIF tax base will occur, therefore there is not a negative fi nancial impact resulting from this
<br />project. Rather, because of the unique TIF and non -TIF tax base planned, it can be arg ued that
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