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W <br /> N LaNel <br /> Financial Group, Inc. <br /> 4601 Excelsior Blvd., Suite 651 <br /> Minneapolis, MN 55416 <br /> (612) 920-0400 <br /> May 9, 1989 <br /> Ms. Sue VanderHeyden <br /> City Manager <br /> City of St. Anthony <br /> 3301 Silver Lake Road <br /> St. Anthony, MN 55418 <br /> Re: Autumn -Voods Apartments <br /> Dear Sue : <br /> Frank and I appreciate you and Bob taking the time to meet with <br /> us to discuss our concern over the real estate tax impact on <br /> Autumn Woods. <br /> Both the City and LaNel are very excited and proud of the project <br /> and all realize the significance of developing not only a <br /> physically attractive project , but also one that will be <br /> economically successful -when it opens and well into the future. <br /> When we put together the economic projections, which were used in <br /> obtaining the Housing Revenue Bond financing , the City ' s tax <br /> increment program showed a real estate tax expense for the <br /> project of $1,, 200 per unit . As a result, all of our projections <br /> and forecasts are based on that number . <br /> It now appears that , based on other properties coming on line in <br /> Hennepin County , the real estate taxes are going to be $1 ,500 to <br /> $1 ,800 per unit . <br /> This difference has a dramatic negative impact on the project ' s <br /> ability to service the Housing Revenue Bonds. <br /> Obviously , sufficient real estate taxes have to be generated by <br /> the projects in your tax increment financing district to pay off <br /> your TIF Bonds . <br /> Assuming that all of your projects pay the taxes , it does appear <br /> that an excess over the TIF Bond scheduled debt service will <br /> exist . <br />