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REQUEST FOR COUNCIL CONSIDERATION Agenda Section: <br /> STAFF REPORT Report Number: <br /> OMR <br /> Report Date: 10-28-93 <br /> C��w° <br /> AGENDA SESSION DATE November 1, 1993 <br /> DISPOSITION <br /> Item Description: Continued Discussion Regarding Multi—Tech Expansion, Hill Project and <br /> Everest's Building M <br /> Administrator's Review/Recommendation: <br /> - No comments to supplement this report <br /> - Comments attached. <br /> Explanation/Summary (attach supplement sheets as necessary.) <br /> SUMMARY; <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 and Building "N" (Attachment A) . In addition to <br /> Springsted's projections, Everest has 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 7% interest, with a payback in 12 <br /> years; C.G. Hill at $172,000 ($1.50/ sq. ft. TIF subsidy) at 7% <br /> with a payback in 6 years; Building "N" at $450,192 (again, a $1.50 <br /> sq. ft. TIF subsidy) with a payback in 5 years. All the <br /> projections indicate the 85%/15% 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 projects . All of the projections are based on the <br /> assumption that Multi-Tech will purchase all of the 10 .7 acres . <br /> While the projections do not indicate the 15% revenue for the City, <br /> that number can be obtained from looking at the projections <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 . 00/ 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 <br /> reduced, again assuming a $5 . 00 sq. ft. purchase price. Scott did <br /> not known how this would impact E - est;-but had planned to call <br /> Rob Davidson Thursday afternoon to 'nform him of Raghu decision. <br /> A <br /> *rduno, City A. inistrator <br /> RECOMMENDATION; EI <br />