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FILE No. 786 10/19 '00 13:16 ID:TOLD DEVELOPMENT 612 278 7574 PAGE 2 structurally sound, and contain environmental contamination from an unidentified source. As such, the clean-up of the site is not eligible for reimbursement from the Minnesota Pollution Control Agency. The current owners of the site have performed environmental remediation,to the satisfaction of the MPCA, but any future development of the property, will re-open the issue of further clean-up. Because of the engineering properties of the soils and the potential for enormous and unrecoverable environmental clean-tip costs, the prudent way to develop the property is to construct a. foundation system that utilizes pilings. We will also need to constrict the floor of our building in a manner that accounts for the condition of the underlying soils, and take measures to iYnprove the sails in the parking areas of the building. Further, the existing grades of the properties requite a substantial amount of fill inatetial to he placed on the site and will force us tO utilize a significant awount of engineered retaining walls. The estimated cost of these redevelopment and site-specific issues have been prepared by an independent contractor and are as follows: Demolition of Amoco $ 65,000 Non-Reimbursable Environmental Abatement of Amoco (under investigation) Envirorunental Abatement of Vacant Property (finder investigation) piling based Foundation System $100,000 Structural Floor System $115,000 Parking Area Soils Corrections S 75,000 • llliported Fill Material $125,000 Retaining Walls $ 60.000 TOTAL $540,000a- While these costs would prohibit most users from being able to redevelop the site in any manner, we are fortunate to have a profitable tenant that can afford to pay enough rent to close most of this gap. As such, we are only asking that the $200,000 that was tentatively set aside for this property be made available. I sincerely believe that any other potential user of the site would require far more to make economic sense of development at this location. Because of the higher density and expected assessed value of our development, the increment should be paid very quickly. The assessed value of the Arnoco in 2000 is $243,800, resulting in $9,971 in auinual property taxes. The assessed value of the adjacent land; deducting the building, is$360,700 of $2.00 per square foot. Since we are buying approximately 60,000 square feet of this land, the value attributable to our area would be approximately $120,000, or an estimated $5,000 in annual property tax revenue. Based on the assessed value of other Walgreens stores in the metro area, which vary substantially from one location to the next, 1 would expect an assessed value in the in tuxes or a vicinity of$2,000,000. This should result in approximately $£5,000 per yeas