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\f \x/ <br /> THE EVEREST GROUP LTD • <br /> June 3, 1996 <br /> VIA FACSIMILE (784-3462) <br /> AND REGULAR MAIL <br /> Cathy Bennett <br /> EDA Executive Director <br /> CITY OF MOUNDS VIEW <br /> 2401 Highway 10 <br /> Mounds View, MN 55112-1499 <br /> Dear Cathy: <br /> Thank you for your letter dated June 3 responding to our proposal for pay-as- <br /> you-go tax increment financing for Building N in Mounds View Business Park. <br /> We have reviewed with our investor the alternate proposal you suggested for an <br /> 8-year pay-as-you-go TIF financing package and are writing to inform you that <br /> • <br /> the Building N project would not proceed under the alternate TIF proposal as it <br /> would leave far too high .a level of TIF-eligible but unreimbursed project costs. <br /> Our proposal was prepared and submitted after careful consideration of project <br /> costs and the economics necessary to meet the requirements of Companies A <br /> and B, as described in our 5-21-96 proposal letter. <br /> A quick analysis shows land acquisition and site costs totalling $5.97 per square <br /> foot in the Building N site. Your proposed level of TIF financing would only <br /> bring this cost down to $3.22 per square foot, an uncompetitive site cost to <br /> support industrial development, especially considering that several competing <br /> communities are offering free land or full land write-downs to encourage <br /> industrial development. <br /> Quite simply, we are unable to attract the kind of industrial owner/occupants or <br /> tenants desired by the City and the developer without a competitive economic <br /> development package. The lack of a competitive economic development <br /> package is why this site has remained undeveloped 9 <br /> d u developed for9 years. • <br /> We will continue to work with you and Chuck Whiting in an effort to explore other <br /> opportunities to complete the Business Park and keep it strong. <br /> • <br /> 2665 Long Lake Road <br /> Suite 330 • Roseville, MN 55113 <br /> ;612)636-5500 Fax:(612)636-0183 <br />