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G/ eji I 41G -712-'U--L/CA
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<br /> • 1 Page Two (;t`')')-r, "_
<br /> ). May 21, 1996 '` � i -
<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': rt:o..: ..ements.
<br /> J Everest prop: •S t ;crate Company B to new leased space within Building N
<br /> by canceling Company B's c.=�';s+Ing lease and negotiating a new longer term
<br /> i�OU ,, lease for Building N. Unites:. ' ._:�canv B can be relocated to Building N,
<br /> �,�I7 Company A's facility requirement .;:� enc, _ ,_... -., , •
<br /> elsewhere. To relocate from its existing space into Building N, Company B will
<br /> \ `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 i +
<br /> approximately $2,910,790, with an estimated tax capacity of $133,896.1' 1
<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 /> ,. assistance is requested to reimburse a portion of site acquisition, site
<br /> --2 ;mprovement and public improvement costs already incurred or to be incurred by
<br /> I,`►,, e developer.
<br /> \\ '''.;,407The TIF assistance requested is through a Revenue Note in the principal
<br /> 1 ' amount of $1,285,334 payable over fifteen (15) tax increment years at a simple
<br /> •, interest rate of seven (7%) percent. After application of the pay-as-you-go TIF
<br /> 0 principal amount, Everest would still have an unreimbursed investment in the
<br /> Building N site of approximately $505,000, or $1.68 per square foot of land area.
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