Agenda Packets - 1998/04/06 - Laserfiche WebLink

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Ak14 • INTER OFFMEMO ICE To: Chuck Whiting From: Rick Jopke Subject: Mermaid Project Date: April 3, 1998 Attached is a recent fax received from Dave Maroney concerning the proposed Mermaid project. Dave has been in contact with John Seibert and has taken another look at the numbers. John Seibert/Charlie Hall have stated that they continue to need a total of$1,700,000 of TIF assistance for the project. The $1,700,000 includes $800,000 for land costs. Any land costs over and above $800,000 would require additional TIF assistance over and above $1,700,000. The developers have suggested that if the City were to acquire the Rentall business on the corner and provide the land at no cost to them that the $800,000 could cover the acquisition of the remaining parcels. They suggest that the costs for acquiring the Rentall business could come from TIF funds designated for Highway 10 redevelopment. Dave Maroney's projections show that the issuance • of$2,120,000 of bonds would be required to provide $1,700,000 of assistance. Dave indicates that the project would generate $218,500 of TIF which would not pay back the bonds. Only $1,525,000 of bonds could be supported by$218,500 of annual increments. Evergreen Land Services is uncomfortable with providing acquisition and relocation costs without appraisals being done. However a ballpark number they have given me is a total cost of all 4 properties of$1,080,000. This would mean that$280,000 would have to be found from other funds such as the funds designated for Highway 10 redevelopment. Bruce's latest projections show approximately $50,000 to $100,000 a year available for Highway 10 redevelopment projects. The total shortfall based on Dave's numbers and Evergreen's projections would be $455,000. This could go higher if acquisition and relocation costs exceed Evergreen's estimates. •