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07/18/97 08:53 COMMUNITY PARTNERS INC. 4 16127843462 NO.193 P002 <br /> SILVER LAKE COMMONS PROJECT • <br /> DATE: July 18, 1997 <br /> FROM: Dave Maroney <br /> SUBJECT: TIF Request/Land Write-Down <br /> The Developers have requested the following financial participation for the proposed Silver Lake <br /> Commons Project: <br /> 1. Land write-down for the EDA owned land. The investment made by the EDA to <br /> acquire and clear the site is estimated to be approximately$131,000. The <br /> Developers have offered to acquire the property for$35,000. If the proposal is <br /> accepted, the amount of City funded participation would be approximately <br /> $96,000. <br /> 2. A$230,000 deferred loan payable the earlier of the date which sale of the <br /> improved property occurs,the initial financing package is refinanced, or 30 years <br /> from the date of closing. Interest is proposed to accrue at the rate of 1%per <br /> annum. The loan would be secured by a third mortgage. <br /> The proposed financial participation of the City of Mounds View totals$326,000 comprised of <br /> land write-down($96,000)and tax increment financing($230,000). <br /> At this writing,preliminary financing commitments for all of the proposed financial partners <br /> have not been secured. Of particular concern is the status of the planned application to the <br /> MHFA Family Housing Fund Program. The request is due on August 21, 1997 with a funding <br /> decision expected in October. Without preliminary commitments, it is difficult to perform any <br /> kind of conclusive financial analysis relating to the tax increment request. However,to keep the <br /> review process moving, a conditional commitment is possible should the City wish to do so. <br /> A conditional commitment should include the following minimum terms and conditions: <br /> 1. The actual dollar amount of any loan(s)by the City of Mounds View will not <br /> exceed a total of$326,000. The actual amount and terms of participation will not <br /> be finalized until and after letters of intent and preliminary commitments to <br /> finance the proposed Silver Lake Commons Project are secured. The amount of <br /> participation will be based upon the then identified financial need of the project to <br /> a maximum of$326,000. <br /> • <br />