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Mike Morrison 09 <br /> Sale of Kenzie Terrace Property <br /> June 18, 2003 <br /> Page 2 <br /> nadNtrRed�l u. ¢E_mRi <br /> ft1: 1 77 °„11L e.ri <br /> y � � Ee`�%" �" �zct ..,-�' a -T`' '�'?. �' . 'RB x ,,u d,�-°•'^t•7'i]C3"5�' �a:lo� <br /> `E 0 P- #a! <br /> Ninen : r ' s U tton of � Tt a� fist >x� <br /> Za'luatIoi�w Taxes c :f of Land msItionWP <br /> `� <br /> `�, � � •., r N ,- sue{ . ,,+ � a1(,€L-,,�, r �_'� `-�esr'�z, <br /> s ',.� �' 6* .t,r� �v �S,'dxl8'PrICe <br /> *.�..k <br /> LaNel 38 Rental Units $3,610,000 $62,974 $21,229 $285,000 $159,803 <br /> $95,000/Unit) <br /> 5 Single-Family <br /> Pre-Redevelopment Homes $375,000 $4,077 $724 N/A N/A <br /> ($75,000/Unit) <br /> As noted in the above referenced chart, there is a significant increase in property valuation due to <br /> the redevelopment and a significant increase in overall taxes generated by the new development, <br /> thus increased tax revenue to the City. Based upon this information, the City will recapture their <br /> investment in the property in 7 '/z years through the sale of the land and the increased City <br /> portion of taxes that will be generated by the new development. <br /> Recommendation: <br /> Ehlers recommends that the HRA sell the Kenzie Terrace lots to LaNel Financial based upon the <br /> proposed terms of the Purchase Agreement. This action will allow the closing for the property <br /> to commence by August 15, 2003, with construction slated to begin on September 1, 2003. <br /> Please contact me at 651-697-8506 if you have any questions. <br />