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Donald F. Fauley <br />January 23, 19ST <br />Page Two <br />The above market value <br />increment revenue at th <br />approximately $330,000 when <br />OR <br />e <br />will generate a gross tax <br />presented mill rates of <br />fully completed. <br />The bond would be sold on or about July 1, 1989 and <br />bear an interest rate of 103. While the final bond <br />wou'_d in all likelihood be serialized, the attached <br />projection assumes interest paid only during the first <br />two and a half years and the fill amount of the tax <br />increment utilized during the remaininc7 life of the <br />bond to be applied towdrd principal and interest. <br />Only the shortfall in the difference between the tax <br />increment and the debt service requirements in the <br />initial months of the bond are illustrated as <br />capitalized interest requirements. =n all likelihood a <br />somewhat larger reserve would be established. <br />5. An 8% cost of issue has been utilized to be conserve•- <br />tive. This may be excessive but assuming economies of <br />scale are at play in the last issue, we were cautious <br />in assuming the cost percentage would increase with the <br />smaller issue. <br />This format follows that used in the past. I would <br />appreciate it if you could take a look at this Don, and <br />feedback any comments you will have. I will rerun the <br />projections so we all have a solid base from which we can <br />move forward with overall discussions. <br />Feel free to call me wi::h any changes you would 1iketo ope. <br />Parl'_eet <br />I look forward to hearing from y YO <br />convenience. <br />Sincerely, <br />THE FVEREST GROUP, LTD. <br />i4ejv-- <br />Allan D. Anderson <br />Vice -President of Finance <br />M <br />ADA/jk 19 <br />