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THE EVEREST GROUP LTD <br />January 23, 1989 q <br />me {'<t�1yyl•L:�/; �� - <br />Donald F. Pauley <br />Clerk/Administrator <br />City of Mounds View- <br />2401 Highway 10 <br />Mounds View, Mt; 55112 <br />Re: Mounds View Business Park - West (Herbst) <br />Tax Incr:ment Financing <br />Dear Don: <br />As discussed earlier in January, we have been workiifng the <br />some projections for the tax increment financing <br />Mounds View Business Park West <br />p oj to you ill as asked m the -- <br />forward the enclosed projections <br />kicking off further discussions surrounding tax increment <br />financing. Future discussions will yield better asslulptions <br />in terms of sizing, reserve funds, interest rates, etc. As <br />those asoum; tions become available we can fine tune this <br />projection to accommodate betterhedata. <br />assu As you <br />ons are rather <br />see in <br />reviewing these projections, <br />crude at present, but should give you an idea ao the <br />level of tax increment revenue generated from the project. <br />As you will see in the attached prujections, we and ci ethe <br />bond issue of approximately $1,700,000 in support <br />project as currently contemplated. Given the square footage <br />build out of the project of approximately 270,000 square <br />$7e200,�000Ye We expect this project will geabout mal:ket value at cc--letion of <br />nerate taxes of <br />approximately $1,25 per square foot on an average blended <br />basis. <br />I have outlined below some of the basic assumptions used in <br />the attached projections: <br />1. Market value of buildings at completion $7,200,000 to <br />be built over a three year period: Phase I - 40* of <br />project completed by 1/ol/9o, Phase II - 30% of project <br />completed by 1/01/91, Phase III - completion of <br />remaining 30% of project on or before 1/ol/92. <br />ka'4 <br />------------- <br />2665 Long Lake Road <br />P.O. Bom 1329? • R.1"ille• MN 55113 <br />16121636,5500 <br />