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RJ.QUEST FOR COUNCIL CONSIDERATION <br />Agenda$rclion: ___ _ <br />STAFF xEroRT Report NnmIx•r: _ _. - <br />Report Date: __10-28-93-- <br />r1GIdNDA SESSION DATP:�tivembc� 199� <br />DISPOSITION <br />Item D'.-Ullmon: Continued Discussion 8eg;irdlng Multi—TCCh Iixp;intiiont 1ItII Project and <br />17verest's building `I <br />Ad mini st rn loth Review/Rerotnnvndntinn: <br />No comments to suppleou•nt this report <br />!•anunents otbmhed. _____.._.._. <br />1'. SI1111NIIla n'tipMina t'V Ialiarh 90 pplo me nt xheelx of neces.-Rr)'.) <br />Si1D1I1fAllY: <br />Springsted has provided the Council with financial projections on <br />all three of the proposed Everest development sites; Multi -Tech, <br />C.G. Hill Springsted's and projections, Everest a has ) addition <br />also provided financial <br />projections on the three projects (Attachment B). <br />The projections indicate the City's October 25th offer of $700,000 <br />for the Multi -Tech site, at 78 interest, twith <br />hIF subsidy) n 78 <br />12 <br />years, C.G. Hill at $172,000 ($1.50/ sq. f <br />with a payback in 6 years; Building 'IN" at $450,19r(again,a $1.50 <br />sq. ft. TIF subsidy) with a payback in 5 yea <br />the <br />projections indicate the 858/158 split. <br />Springsted has also provided projections with varying interest <br />rates as well as the annual principal and interest payments, noting <br />the total payback of principal and interest to Everest in each of <br />the three he <br />on the <br />assumption tects. All of s that Multi -Tech willpurchase call nof the 10.7s are bdacres. <br />While the projections <br />that number can be <br />provided by Everest. <br />I spoke with Scott Wiley of Multi -Tech this morning. He called to <br />inform me that the owner, Raghu Sharma, has determined that if the <br />City is offering $1.50/ sq. ft. in TIF subsidy for a total land <br />purchase price of $5.75, Multi -Tech will reduce its purchase offer <br />to $3.50/sq. ft. Raghu does not feel that the land is worth more <br />than $5.0/ sq. ft. and had originally increased his purchase price <br />from $3.50 to $4.25 with the idea that the City subsidy would be 0 <br />reduced, again assuming a $5.00 sq, ft. purchase price. Scott did <br />not known how this would impact E rest, but had planned to call <br />Rob Davidson Thursday afternoon to 'nform him of Raghu decision. <br />do not indicate the 15% revenue for the City, <br />obtained from looking at the projections <br />ty <br />