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� e <br /> SPRI14GSTED <br /> PUBLIC FINANCE ADVISORS <br /> • 85 East Seventh Place, Suite 100 <br /> Saint Paul, MN 55101.2143 <br /> 612.223.3000 <br /> Fax: 612.223.3002 <br /> MEMORANDUM <br /> TO: Members, City Council <br /> Mr. Tom Burt, City Manager <br /> Ms. Susan Vanderheyden, Assistant to the City Manager <br /> City of St. Anthony <br /> FROM: Robert D. Thistle <br /> Barry W. Fick <br /> Springsted Incorporated <br /> DATE: November 22, 1989 <br /> RE: LaNel Financial Group Request <br /> Background <br /> LaNel Financial Group has requested that the City of St. Anthony allow LaNel to retain some <br /> • of the property taxes due on their project in the event that the assessed value is higher than <br /> expected and the taxes due on an individual unit basis exceed an amount around $1,200. <br /> We have met with LaNel to discuss their concerns. We have received information from LaNel <br /> on their projected 1992 cash flow from the development based on varying tax payment <br /> assumptions. We have also received an informal survey of rents from comparable type <br /> apartment complexes. <br /> Facts and Analysis <br /> The St. Anthony development is located in a tax increment district. The development is <br /> subject to a redevelopment agreement dated August 4, 1988. <br /> Article VI of that agreement deals with the tax increment district. Section 6.1 notes that the <br /> minimum amount of tax increment generated by this project will be $1,100 per unit. This <br /> works out to $221,100 based on 201 units in the development. If the actual increment is less <br /> than this amount, the redeveloper (LaNel) agrees to pay the difference on an annual basis, <br /> subject to some restrictions, to the HRA in order to pay off the bonds issued for the project. <br /> Article II, Section 2.2(c) states that the Minimum Improvements will be constructed so as to <br /> have an Assessed Value of at least$5,700,000. <br /> Minnesota Statutes, section 273.13, Subdivision 25 defines the maximum tax capacity (class <br /> rate) that is payable by apartment complexes such as this one. At the time the <br /> • Indiana Office: Kansas Office: Wisconsin Office: <br /> 135 North Pennsylvania Street 6800 College Boulevard 500 Elm Grove Road <br /> Suite 2015 Suite 600 Suite 101 <br /> Indianapolis, IN 46204.2498 Overland Park, KS 66211.1533 Elm Grove, WI 53122.0037 <br /> 317.684.6000 913.345.8062 414.782.8222 <br /> Fax: 317.684.6004 Fax: 913.345.1770 Fax: 414.782.2904 <br />