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• <br /> Everest is now requesting $2.4 million in TIF for land write down and <br /> public improvements in Phase III . The public improvements include water <br /> mains, landscaping and lighting of boulevards and paving and curbing of <br /> streets. The public improvement portion of the project is expected to <br /> be approximately $300,000 with the remainder , approximately $2.2 <br /> million , for land write down . <br /> Another piece of information you need to consider is the profit that <br /> Everest has made on their first two projects. Unofrtunately, we do not <br /> know the exact amount as we do not know how much they spent on <br /> constructing the buildings nor do we know the sales prices for the <br /> Multi-Tech, Taco Bell or KFC buildings. We do, however, know that in <br /> the Calpers sale of buildings A, F, and v, Everest sold the three <br /> buildings having an assessed value of $14,300,000 for $21 ,805,000 or a <br /> $7, 505 ,000 profit . It would seem reasonable to conclude that this <br /> profit could now be reinvested into the project thus diminishing the <br /> need for TIF or any other form of assistance. <br /> After considering all of the above and consulting with our tax increment <br /> and fiscal advisers, who agree with my recommendation , I have come to <br /> the conclusion that the City should not provide TIF to Everest for Phase • <br /> III except to fund the cost of public improvements. This conclusion is <br /> based upon the following facts, <br /> * The City has more than one-third of its total assessed value <br /> captured for debt service on existing Tax Increment projects. <br /> * The new value from these projects will not benefit property <br /> taxpayers for another 13 years. <br /> * The Business Park projects have been successful to the point that <br /> Everest has been able to make a substantial profit on the sale of <br /> three buildings to an out-of-state investor. <br /> * Everest should be able to reinvest their profits into the project <br /> eliminating the need for assistance. <br /> * The City has done enough to spur development and create a positive <br /> community environment for additional develpment. Now is the time <br /> for us to stand back and see if the investment can regenerate <br /> itself . <br /> I will be happy to discuss this recommendation with you at the February <br /> :, mr1_ <br /> • <br />