Laserfiche WebLink
SPRINGSTED <br /> 120 South Sixth Street <br /> PUBLIC FINANCE ADVISORS Suite 25 5 <br /> :f�.. Minneapolis, MN 55402.1800 <br /> (612) 333-9177 <br /> Fax: (612) 349-5230 <br /> • Home Office <br /> 85 East Seventh Place 16655 West Bluemound Road <br /> Suite 100 Suite 290 <br /> Saint Paul, MN 55101-2143 Brookfield. WI 53005-5935 <br /> (612) 223-3000 (414) 782.8222 <br /> Fax: (612) 223-3002 Fax: (414) 782-2904 <br /> 6800 College Boulevard <br /> Suite 600 <br /> Overland Park, KS 66211-1533 <br /> (913) 345-8062 <br /> Fax: (913) 345.1770 <br /> April 12, 1994 <br /> 1800 K Street NW <br /> Suite 831 <br /> Washington, DC 20006-2200 <br /> (202) 466.3344 <br /> Mr. Roger Larson Fax: (202) 223-1362 <br /> City of St. Anthony <br /> 3301 Silver Lake Road <br /> St. Anthony, MN 55418 <br /> Re: St. Anthony Condominiums <br /> Request for Tax Increment Financing (TIF) Assistance <br /> Dear Roger: <br /> At your request, Springsted has done a preliminary review of the information submitted by' <br /> John Beal of Burnett Realty. Based on our review, I offer the following observations: <br /> • 1. The proposed Assessed Value of $3,060,000 equals the proposed Sales Value of the <br /> project. Typically, there is some amount of downward adjustment made by the <br /> assessor when valuing the property. I would suggest that the developer take his project <br /> information and meet with the assessor to get a more accurate reading of the proposed <br /> market value and corresponding taxes that might be paid. <br /> 2. When calculating the proposed real estate taxes and estimating the size of the Tax <br /> Increment, a tax rate of 2% was applied to the entire assessed value. For homestead <br /> property, the first $72,000 of value is taxed at 1.0%. Using the amounts and method <br /> used by the developer in determining the annual taxes, the related Tax Increment would <br /> then be $30,645. After deducting the City's 10% administrative costs, the available Tax <br /> Increment would be $27,580. <br /> I would caution that, until this project has been reviewed by an assessor and some tax <br /> estimates have been obtained, the Tax Increment amounts referenced above are <br /> speculative. <br /> 3. The.Profit and Risk at $13,524 per unit is more than double the amount we are used to <br /> seeing on a development project with of this type when there is public assistance. <br /> 4. 1 am not clear about how much TIF the developer is requesting nor how he wants to <br /> receive it (i.e., upfront vs. pay-as-you-go). . <br /> It appears the developer is requesting assistance for the following items: <br /> • Demolition $ 35,000 <br /> Utilities $ 25,000 <br /> Land Write-down $265,839 <br />