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• <br /> SUBJECT: Hotel Project/John Seibert <br /> DATE: July 15, 1998 <br /> • Pilot-Year 2000-$218,500(under consideration). <br /> • Tax shortfall agreement(proposed). <br /> • TIF -2001 through 2013 inclusive. <br /> • 100% of project tax increment allocated to debt service. <br /> • Hotel operational in the Summer of 1999. <br /> • City acquires Rent-All and finances relocation and demolition from TIF Pool. <br /> • Of the$1,700,000 request for tax increment assistance, exclusive of Rent-All costs, no <br /> dollar limit will be set for acquisition. However, acquisition expenses must be determined <br /> mutually by the parties to be both"reasonable and prudent" investments of bond proceeds. <br /> • Annual tax increment estimate of$218,500 is expected to increase over time. <br /> • Preliminary Bond Details. <br /> Sale Date 12-1-98 <br /> Amount $2,000,000 Taxable G.O. <br /> $1,700,000 Project Proceeds <br /> $ 300,000 Issuance Costs <br /> Estimated Rate 6.5% -6.75% <br /> First Interest Payment 8-1-99; semi-annually thereafter <br /> First Maturity 8-1-01 <br /> • Pursue tax-exempt bond financing to the degree possible given the details of the project. <br />