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04/03/98 11:44 COMMUNITY PARTNERS INC. 4 16127843462 NO.238 P002
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<br /> Subject: Hotel Project Proposal
<br /> Revised TIF Assumptions
<br /> Date: April 1, 1998
<br /> .: AssuniQns
<br /> 1. TIF HotelBanquet Facility(105 rooms)
<br /> JCS Development Proposal dated January 5, 1998
<br /> 2. Tax increments captured for 15 years beginning in the year 2000 and ending in 2014. 95%
<br /> of TIF available for debt service.
<br /> 3. Taxable TIF Revenue Bond issued on 7/1/98; 15 year amortization; and for planning
<br /> purposes, an interest rate of 7.25%,
<br /> 4. Issuance expense budget provides for 24 months of capitalized interest, finance fees and
<br /> legal costs.
<br /> 5. Stable tax increment revenues and no project expansion.
<br /> 6. Rent-All is acquired with funds from the Mounds View Economic Development Project
<br /> Fund ("pooled account").
<br /> rreliminary JBudget Profile
<br /> Lel Facility B_ quet Center Totals
<br /> Development Costs $5,905,000 $1,660,000 $7,565,000
<br /> Tax Increment Assistance $1,000,000 $ 700,000 $1,700,000
<br /> %of Development Costs 17% 42% 22%
<br /> TIF a Acquisition $ 400,000 $ 400,000 $ 800,000
<br /> TIF -Project Costs S 600,000 $ 300,000 $ 900,000
<br /> Annual TIP Estimate $ 178,500 $ 40,000 $ 218,500
<br /> Preliminary Debt Projections
<br /> Annual TIF pond lime Dance Expenses Net Proceeds
<br /> 1. $218,500 $1,900,000 $375,000 $1,525,000
<br /> I
<br /> 2. $245,000 $2,120,000 $420,000 $1,700,000}
<br /> (1) Developers request is for$1,700,000.
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