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<br /> • I Page Two 6- i A ,£ 1
<br /> May 21, 1996 ir ' 5'-f_i
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<br /> Everest is currently negotiating with a Twin Cities company ("Company A") to
<br /> locate a substantial new facility requirement within an existing building in
<br /> Mounds View Business Park. Company A's/facility need is of a size that would
<br /> involve both existing vacant space in Mounds View Business Park and existing
<br /> occupied space, requiring the relocation of an existing Mounds View Business
<br /> Park tenant ("Company B") to create a contiguous space large enough to meet
<br /> Company A's requirements. I
<br /> 31J 1. Everest proposes to relocate Company B to new leased space within Building N
<br /> Y by canceling Company B's existing lease and negotiating a new longer term
<br /> lease for Building N. Unless Company B can be relocated to Building N,
<br /> t1/ ' Company A's facility requirement cannot be met, and Company A will go
<br /> jk elsewhere. To relocate from its existing space into Building N, Company B will
<br /> c incur significant costs of relocation for moving expenses, racking systems and
<br /> ) other equipment.
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<br /> Everest acquired and assembled the four parcels of land which make up the
<br /> • Building N site over the period 1987 to 1990, and has now held the property for
<br /> - up to nine (9) years as an industrial development site to compliment the existing
<br /> development in Mounds View Business Park. Provided that a development
<br /> agreement can be finalized expeditiously, construction of the project would occur
<br /> in 1996, with substantial completion by January 2, 1997, for taxes payable in
<br /> 1998. Upon completion, the estimated market value of the facility would be
<br /> approximately $2,910,790, with an estimated tax capacity of $133,896.
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<br /> Projected property taxes are calculated at $183,369 per year, compared to
<br /> current taxes of $32,420 per year on the undeveloped land.
<br /> The estimated total project cost for Building N is approximately $4,365,000,
<br /> including $1,200,000 in site acquisition and carrying costs already incurred,
<br /> approximately $590,000 in site improvements and public improvements, and
<br /> $2,575,000 in building construction cost. Pay-as-you-go tax increment
<br /> r',-,!,,,,,,,, assistance is requested to reimburse a portion of site acquisition, site
<br /> \,` >_mprovement and public improvement costs already incurred or to be incurred by
<br /> -? e developer.
<br /> ‘'`i' The TIF assistance requested is through a Revenue Note in the
<br /> ;iii q g principal
<br /> fit) amount of $1,285,334 payable over fifteen (15) tax increment years at a simple
<br /> 40.,,i+.r" interest rate of seven (7%) percent. After application of the pay-as-you-go TIF
<br /> principal amount, Everest would still have an unreimbursed investment in the
<br /> BuildingN site of approximately or $1.68per square pp y $505,000, foot of land area.
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