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ARNOLD <br /> DEVELOPMENT <br /> May 17, 1995 <br /> Mr. Michael Mornson <br /> City Manager <br /> Saint Anthony Village <br /> 3301 Silver Lake Road <br /> St. Anthony, MN. 55418-1699 <br /> RE: The Arbors of Saint Anthony Village <br /> Dear Mike: - <br /> I am writing to respond to your letter dated May 9, 1995 with an enclosure from Jerry Gilligan <br /> on how the Tax Increment Financing("TIP) should be structured on the above-referenced <br /> project. <br /> 1. Timing of Payment of Assistance. The underlying reason for the TIF assistance request <br /> is the result of the exorbitantly high land cost of this property relative to what the City and the <br /> neighborhood what to see developed on this site. ARNOLD Development is requesting <br /> "upfront" TIF assistance to provide a "write-down" of the land cost for this type of development. <br /> Owner-occupied townhouse development of this nature and market can only be feasible on <br /> undeveloped land of approximately$5,000 - $7,500 per unit. That means that a development of <br /> the nature acceptable to the City and the neighborhood can support a land cost of approximately <br /> $100,000. Therefore, I am requesting the City participate and "write-down" the cost of the <br /> property to an acceptable level to accommodate this type of development. It is not feasible for <br /> me to provide a letter of credit for the amount of assistance on the land cost due to the fact that I <br /> cannot support a higher land cost with an appraisal. Additionally, I am not asking for help to <br /> complete improvements and therefore should not be bound be a financial requirement released <br /> upon any improvement completion. <br /> Thirty-Six South Ninth Street <br /> Minneapolis, Minnesota 55402 <br /> (612) 288-0985 Fax (612) 288-0953 <br />