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TIMOTHY J. NELSON <br /> O REDHORSE REAL ESTATE INC. <br /> 7050 West 120th Avenue, Suite 118, Broomfield CO 80020 <br /> 303/439-8300; 303/439-8301 Fax <br /> November 3. 2003 <br /> Aaron Backman <br /> Economic Development Director <br /> CITY OF MOUNDS VIEW <br /> 2401 Highway 10 <br /> Mounds View, MN 55112 <br /> RE: Building N Project - TIF Revenue Note <br /> Dear Aaron: <br /> 410 Thank you for your time and consideration in meeting with Mayor Linke, <br /> Kurt Ulrich, Jim Knight and me last week concerning the noted project. In <br /> follow-up to that meeting I am writing on behalf of my client, Michael <br /> Investments, developer of the Building N project and holder of the Tax <br /> Increment Revenue Note issued by the City in connection with the project, <br /> to propose a solution to the substantial TIF payment deficit that has <br /> developed concerning the project. <br /> As we have discussed recently, at the time the Building N Development <br /> Agreement and companion Revenue Note were negotiated with the City, tax <br /> increment projections indicated that approximately $150,000 per year in tax <br /> increment would be generated by this project. Both the City and the <br /> developer anticipated the project would generate increment in this range, <br /> sufficient to pay off the $1.2 Million principal amount of the Revenue Note, <br /> with the agreed 7.75% interest over the term of the note, which extends to <br /> 2013. <br /> Through no fault or action of the City or the developer, but rather, as a result <br /> of state legislative changes in the tax class rates for commercial/industrial <br /> • property, and the removal of schools from the local real estate taxing <br />