HRA 1-15-08 Agenda Packet
AGENDA
GOLDEN VALLEY HOUSING AND REDEVELOPMENT AUTHORITY REGULAR MEETING
January 15, 2008 - 6:30 PM
Golden Valley City Hall
1. Roll Call
2. Approval of Minutes - October 9, 2007 Regular HRA
Mee'ting
3. Approval of Bills:
City of Golden Valley
TOTAL
Bill Summary:
General Fund - 2007
275.80
. 910.00
Valley Square -
Capital Project Fund - Area B
Tax Increment Fund
(17,037.00)
Golden Hills -
Capital Project Fund - Central Area
Tax Increment Fund
15,726.40
North Wirth -
Capital Project Fund - District #3
676.40
Housing Program Fund
TOTAL
$275.80
4. Receive and File December Financial Reports
5. Election of Officers
6. Set 2008 HRA Meetings
Regular Meetings
Special Workshop
7. Adoption of 2008 General Fund Budget: Resolution 08-01
8. Designation of Depositories: Resolution 08-02
9. Review of Tax Increment Financing Policy
10. Other Business
11. Adjournment
s upon a 72*hour request Please call
(TIY: 763 make a request. Examples of alternate formats
may include large print, electronic, Braille, audiocassette, etc.
Paoes
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REGULAR MEETING
OF THE
HOUSING AND REDEVELOPMENT AUTHORITY
October 9, 2007
Pursuant to due call and notice thereof, a regular meeting of the Housing and
Redevelopment Authority of the City of Golden Valley, Hennepin County, Minnesota, was
held at 7800 Golden Valley Road in said City on October 9,2007, at 6:30 pm, in the City
Council Chambers.
The following members were present: Chair Paula Pentel and Commissioners Mike
Freiberg, Linda Loomis, DeDe Scanlon and Robert Shaffer. Also present were HRA
Director Thomas Burt, and Administrative Assistant Judy Nally.
Approval of the Minutes
MOVED by Loomis, seconded by Shaffer, and motion carried to approve the minutes of the
July 10, 2007 regular HRA meeting as submitted.
Approval of Bills
Chair Pentel introduced the agenda item.
MOVED by Loomis, seconded by Shaffer and motion carried unanimously to approve the
bills as submitted, a Reimbursement of City Expenditures for the HRA.
Receive and File October Financial Reports
Sue Virnig, Finance Director, introduced the agenda item.
MOVED by Loomis, seconded by Shaffer and motion carried to receive and file the October
Financial Reports.
Adiournment
The meeting was adjourned at 6:34 pm.
Paula Pentel, Chair
ATTEST:
. Judy Nally, Administrative Assistant
1
alley
Memorandum
Housing & Redevelopment
Authority
763-593-8002/763-593-8109 (fax)
7800 Golden Valley Rd. Golden Valley, MN 55427
763-593-8014
Date: January 11, 2008
To: Housing and Redevelopment Authority Commissioners
From: Sue Virnig, Finance Director
Through: Thomas D. Burt, Director
Subject: Reimbursement of City Expenditures for the HRA
As of December 31,2007 the following expenditure amounts were owing to the City by the
HRA:
Amount
City Expenditures:
Market Value Homestead Credit (received from State in
City's account)
1000 Best & Flanagan (September legal)
1000 Best & Flanagan (October legal)
1000 Best & Flanagan-credit taken
1000 Best & Flanagan (November legal)
1000 Springsted (debt service payments)
HRA Expenditures:
9000 General Fund
9120 Valley Square Tax Increment Fund
9250 North Wirth Tax Increment Fund #3
9280 Golden Hills Capital Projects
-17,037.00
3,406.40
10,016.40
-910.00
2,730.00
2,070.00
$275.80
910.00
(17,037.00)
676.40
15,726.40
$275.80
This reimbursement should be approved by the HRA as part of the normal bill paying
process.
Check
#
89971
90310
90355
90696
90311
1
HRA of Golden Valley
General Fund
December 2007 Budget Report
Percentage Of Year Completed 100%
Revenue
2007
Budget
Oct-Dee
Actual
YTD
Actual
Over
(Under)
Budget
%Of
Budget
Received
Transfer from TIF Funds:
Valley Square
Golden Hills
$10,000 0.00 10,000.00 0.00 100.00%
150,000 0.00 150,000.00 0.00 100.00%
0 401.56 3,859.60 3,859.60
9,000 0.00 0.00 (9,000.00) 0.00%
$169,000 401.56 163,859.60 (5,140.40) 96.96%
Interest Earnings (2)
Fund Balance
Totals
Over %Of
2007 Oct-Dee YTD (Under) Budget
Expenditures Budget Actual Actual Budget Expended
Legal Services (1) $6,000 910.00 2,168.10 (3,831.90) 36.14%
Audit 12,000 0.00 12,000.00 0.00 100.00%
City Overhead 150,000 0.00 150,000.00 0.00 100.00%
Miscellaneous 1,000 0.00 0.00 (1,000.00) 0.00%
Totals $169,000 910.00 164,168.10 (4,831.90) 97.14%
Notes:
(1) Includes November-to-date billings from Best & Flanagan.
(2) Interest is through 12/07.
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City of Golden Vallev - HRA - Tax Increment District Proiections
Vallev Square Tax Increment Fund:
2007 2008 2009 2010 2011
Projected Cash Balance @ 1/1 $2,235,284 $2,097,476 $1,963,282 $1,836,543 $1,725,199
Plus:
Non-Area B Increment - Applied To 1994 Bonds
Area B Increment 713,290 693,809 674,854 656,417
Interest Earnings @ 2.5% of Beg. Ba!. 55,882 52,437 49,082 45,914
Less:
Transfer to HRA General Fund (10,000) (10,000) (10,000) (10,000)
Debt Service:
2003 Tax Increment Bonds (3.47%) (620,100) (602,875) (583,000) (561,800) (540,600)
2003 Taxable Tax Increment Bonds (4.49%) (276,880) (267,565) (257,675) (241,875) (230,625)
Projected Cash Bal. @ 12/31
$2,097,476 $1,963,282 $1,836,543 $1,725,199
$953,974
Bond Principal & Interest Outstanding @ 12/31
$3,286,015 $2,415,575 $1,574,900 $771,225
$0
w
City of Golden Valley - HM-_Tax Increment District Proiections
Golden Hills Tax Increment Fund:
(Includes Tax Increment Fund and Debt Service)
2007 2008 2009 2010 2011 2012 2013 2014 2015
Projected Cash Bal. @1/1 $3,470,240 $3,559,529 $4,027,929 $4,568,938 $5,178,324 $5,847,595 $7,666,849 $8,528,788 $7,509,469
Plus:
Estimated Tax Increment 2,900,000 3,500,000 3,535,000 3,570,350 3,606,054 3,642,114 3,678,535 3,715,321
Interest Earnings (2.5% of Beg. Bal.) 87,494 87,230 82,144 78,706 76,808 76,235 104,239 108,135
Less:
Transfer to HRA General Fund (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) (150,000)
Debt Service:
1999 C Tax Incr. Bonds (5.09%) (Callable 02/01/08) (871,425) (871,495) (869,120) (869,470) (866,970)
2004 A Tax Incr. Refunding Bonds (2.27%) (227,180) (223,340) (223,925) (223,875) (228,095)
2005 B Taxable Tax Incr. Refunding Bonds (4.69%) (208,705) (419,675) (416,245) (407,305) (407,880) (402,850) (397,310) (1,719,195) (1,648,240)
2005 A Tax Increment Refunding Bonds (3.50%) (49,520) (103,695) (106,970) (115,020) (122,770) (125,245) (127,400) (537,080) (524,140)
2006 A Taxable Tax Incr. Refunding Bonds (5.12%) (1,391,375) (1,350,625) (1,309,875) (1,274,000) (1,237,875) (1,221,000) (2,246,125) (2,436,500) (2,880,250)
Projected Cash Ba!. @ 12/31 $3,559,529 $4,027,929 $4,568,938 $5,178,324 $5,847,595 $7,666,849 $8,528,788 $7,509,469 $2,456,839
Bond Principal & Interest Outstanding @ 12/31 $25,967,995 $22,995,060 $20,062,785 $17,165,545 $14,293,355 $12,535,035 $9,755,255 $5,065,439 $0
...c
HRA Of Golden Valley Capital Project Funds
2007 Financial Report 9280 9220 9250
Golden Valley North
Hills Square Wirth #3
Cash Balance @ 09/30/07 $284,238.24 $735,876.29 $17,850.34
Add:
Receipts:
Interest 2,969.08 5,519.64 161.45
Less:
Expenditures - 09/30/07:
City of Golden Valley (1)
(15,726.40)
(676.40)
Cash Balance @ 12/31/07
$271,480.92
$741,395.93
$17,335.39
(1) Breakdown on City Expenditures Memo
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1
hlley
Memorandum
Housing & Redevelopment
Authority
763-593-8002/763-593-8109 (fax)
Date: January 11, 2008
To: HRA Commissioners
From: Thomas D. Burt, HRA Director
Subject: Election of Officers
The HRA by-laws provide for the election of two officers to the HRA - Chairperson and Vice
Chairperson. The by-laws state these positions are to be elected for a one-year term.
The officers in 2007 were: Chairperson, Paula Pentel; Vice Chairperson, Mike Freiberg.
b
alley
Memorandum
Housing & Redevelopment
Authority
763-593-8002/763-593-8109 (fax)
7800 Golden Valley Rd. Golden Valley, MN 55427
763-593-8014
Date: January 4, 2008
To: Housing and Redevelopment Authority Commissioners
From: Jeanne Andre, Assistant Director
Through: Thomas D. Burt, Director
Subject: Set HRA Meetings
Set Regular HRA Meetings
Under its by-laws, the HRA has regular meetings quarterly on the second Tuesday in
January, April, July and October, except that by statute the City Council terms begin on the
first Monday of the new year, so the Council and HRA meetings were delayed to the first
Tuesday after the first Monday. The 2008 HRA regular quarterly meeting dates would
therefore be January 15, April 8, July 8 and October 14.
Special Workshop Meeting of the HRA
The City Council has initiated the process of amending the Comprehensive Plan and
considering zoning amendments related to the 1-394 corridor. As a portion of the corridor
overlaps with the existing Golden Hills Redevelopment Area, staff recommends reviewing the
Redevelopment Plan to consider changes that would bring it in line with the proposed land
uses in the corridor. Discussion of this topic is suitable to a workshop format and other topics
could be added at the direction of the HRA. Redevelopment topics could be discussed at the
conceptual (rather than specific project) level, to provide direction to staff when working with
developers. Possible additional topics include use of tax-increment financing, supporting
reinvestment in the housing stock, creating life-cycle housing, targeting areas for
redevelopment, etc.
If the Commissioners are amenable to participating in a workshop session, staff recommends
setting a special meeting on Tuesday, February 12, either right before or right after the
Council/Manager Meeting.
Recommended Action:
Set regular meetings and determine if the HRA should have a special workshop session.
Suggested dates for regular meetings are: January 15, April 8, July 8 and October 14 at 6:30
pm. The suggested date for a Special Workshop Meeting is Tuesday, February 12, time to be
set by the Director.
7
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Memorandum
Finance
763-593-8013/763-593-8109 (fax)
Executive Summary For Action
Golden Valley Housing and Redevelopment Authority (HRA) Meeting
January 15, 2008
Agenda Item
Adoption of the 2008 HRA General Fund Budget: Resolution 08-01
Prepared By
Sue Virnig, Finance Director
Summary
Attached is the 2008 Housing and Redevelopment Authority General Fund Budget. There is
no increase from the 2007 budget.
Attachments
Resolution 08-01 Adopting 2008 General Fund Budget (1 page)
Recommended Action
Motion to adopt HRA Resolution 08-01 Adopting the 2008 General Fund Budget.
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Resolution 08-01
January 15, 2008
Commissioner introduced the following resolution and moved its adoption:
RESOLUTION OF THE HOUSING AND REDEVELOPMENT
AUTHORITY (HRA)
ADOPTING THE 2008 GENERAL FUND BUDGET
BE IT RESOLVED by the HRA that the appropriations for the General
Fund Program for the calendar year 2008 as follows:
GENERAL FUND
Expenditures
Legal Services
Aud it Services
Permanent Transfer
Miscellaneous
Proposed
Budoet
$6,000
12,000
150,000
1,000
~169,000
BE IT FURTHER RESOLVED by the HRA that the sources of
financing the sums appropriated shall be:
GENERAL FUND
Revenue
Valley Square - Tax Increment fund
Golden Hills - Tax Increment fund
General Fund - Fund Balance
$10,000
150,000
9,000
$169,000
Paula Pentel, Chair
ATTEST:
Thomas D. Burt, Executive Director
Motion for the adoption of the foregoing resolution was seconded by
Commissioner; and upon a vote taken thereon, the following voted in favor
thereof: ; and the following voted against the same: ,whereupon said resolution
was declared duly passed and adopted, signed by the Chair and his signature
attested by the Director.
9
Hey
Memorandum
Finance
763-593-8013/763-593-8109 (fax)
Executive Summary For Action
Golden Valley Housing and Redevelopment Authority (HRA) Meeting
January 15, 2008
Agenda Item
Designation of Depositories for HRA Funds: Resolution 08-02
Prepared By
Sue Virnig, Finance Director
Summary
State Law requires the HRA to have depositories for HRA funds approved annually. The
attached resolution states the depositories, accounts, and signature requirements for each
account.
Attachments
Resolution Designating Depositories for HRA Funds (1 page)
Recommended Action
Motion to adopt Resolution 08-02 Designating Depositories for HRA Funds.
10
Resolution 08-02
January 15, 2008
Commissioner introduced the following and moved its adoption:
RESOLUTION DESIGNATING DEPOSITORIES FOR HRA FUNDS
BE IT RESOLVED by the Housing and Redevelopment Authority of
Golden Valley that the following are named as depositories for HRA funds,
subject to the furnishing of collateral for funds on deposit as provided in the Laws
of the State of Minnesota:
BNC National Bank
Central Bank
Piper Jaffray Companies
RBC-Dain Rauscher
US Bank
Wells Fargo
BE IT FURTHER RESOLVED that the following signatories or alternates
are authorized to be signatories on checks drawn on funds deposited:
1. General Checking:
HRA Chair or Vice Chair and HRA Director or Assistant HRA Director
Each check shall require (two) signatures.
BE IT FURTHER RESOLVED that the following shall be authorized to
make investments of HRA funds and shall be authorized to deposit the principal
of said investments in the above named depositories as necessary and beneficial
to the City: HRA Director, City Treasurer, City's Accounting Coordinator.
The HRA Director and City Clerk are authorized and directed to furnish
each of the depositories with certified copies of this resolution along with such
signature documentation as is required by the depository and the authorizations
set forth under 1 and 2 above.
Paula Pentel,Chair
ATTEST:
Thomas D. Burt, Director
Motion for the adoption of the foregoing resolution was seconded by
Commissioner ; and upon a vote taken thereon, the following voted in favor
thereof: ; and the following voted against the same: ,whereupon said resolution
was declared duly passed and adopted, signed by the Chair and his signature
attested by the Director.
11
alley
Memorandum
Housing & Redevelopment
Authority
763-593-8002/763-593-8109 (fax)
7800 Golden Valley Rd. Golden Valley, MN 55427
763-593-8014
Date: January 4, 2008
To: Housing and Redevelopment Authority Commissioners
From: Jeanne Andre, Assistant Director
Through: Thomas D. Burt, Director
Subject: Review of Tax Increment Financing Policy
In 2003 the Housing and Redevelopment Authority (HRA) adopted a policy and procedure
related to Tax Increment Financing. At the time of its adoption, the HRA requested an annual
review of the policy to see if it should be continued or revised. Attached is the current version
of the policy, which was last changed in 2006. In keeping with the HRA request for annual
review the current policy is presented for consideration by the HRA. Staff has no
recommended changes to the policy, but would suggest that the fee be adjusted to be
$10,000 initially with an open-ended supplemental application fee, paid in increments of
$5000.
Recommended Action:
Discuss and review attached Tax Increment Financing Policy. If the Commissioners wish to
continue with the policy as established, a motion reaffirming the policy would be adequate. If
Commissioners wish to change or rescind the policy, direction should be provided to staff and
a new resolution reflecting the direction of the HRA will be prepared for the next meeting of
the HRA.
1~
GOLDEN VALLEY HOUSING AND REDEVELOPMENT AUTHORITY
GOLDEN VALLEY, MINNESOTA
TAX INCREMENT FINANCING POLICY
REVISED: April 11, 2006
I. POLICY PURPOSE
For the purposes of this document, the term "HRA" shall include the Golden Valley
Housing and Redevelopment Authority.
The purpose of this policy is to establish the position of the Golden Valley HRA relating
to the use of Tax Increment Financing (TIF) for private development above and beyond
the requirements and limitations set forth by State Law. This policy shall be used as a
guide in the processing and review of applications requesting tax increment assistance.
The fundamental purpose of tax increment financing in Golden Valley is to encourage
desirable development or redevelopment that would not otherwise occur but for the
assistance provided through TIF.
Regardless of authorized expenditures under the law, it is the intent of the HRA to
provide the minimum amount of TIF at the shortest term required for the project to
proceed. The HRA reserves the right to approve or reject projects on a case by case
basis, taking into consideration established policies, project criteria, and demand on city
services in relation to the potential benefits from the project. Meeting policy criteria does
not guarantee theaward of TIF to the project. Approval or denial of one project is not
intended to set precedent for approval or denial of another project.
II. OBJECTIVES OF TAX INCREMENT FINANCING
As a matter of adopted policy, the HRA will consider using TIF to assist private
development projects to achieve one or more of the following objectives:
A. To retain local jobs and/or increase the number and diversity of jobs that offer
stable employment and/or livable wages and benefits.
B. To encourage additional unsubsidized private development inthe area, either
directly or indirectly through "spin off" development.
C. To facilitate the development process and to achieve development on sites which
would not be developed without TIF assistance.
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D. To remove blight and/or encourage redevelopment of commercial and industrial
areas in the city that re~ult in high quality redevelopment and private
reinvestment.
E. To offset increased costs of redevelopment (i.e. contaminated site clean up) over
and above the costs normally incurred in development.
F. To create opportunities for affordable housing.
G. To contribute to the implementation of other public policies, as adopted by the
city from time to time, such as the promotion of quality urban or architectural
design, energy conservation, and decreasing capital and/or operating costs of
local government
H. Foster sustainable development and work to establish a balance between urban
and natural systems. Encourage the application of green building and
infrastructure techniques. Examples include low-impact development that
maintains the natural functions of the land, reduces storm water runoff and
fosters resource conservation and the use of renewable systems in new
construction.
III. POLICIES FOR THE USE OF TAX INCREMENT FINANCING
A. The priority for the Use of TIF funds is:
1. Public improvements, legal,administrative, and engineering costs.
2. Site preparation, site improvement, land purchase, soil correction,
environmental remediation and demolition.
3. Capitalized interest, bonding costs.
B. TIF assistance will be provided to the developer upon receipt of the increment by
the City, otherwise referred to as the pay-as-you-go method. Requests for up
front financing will be considered on a case by case basis.
C. A maximum often percent (10%) of any tax increment received from the district
shall be retained by the City to reimburse administrative costs.
D. Any developer receiving TIF assistance shall provide an equity investment in the
project.
E. TIF will be used to purchase land and/or property only at fair market value.
F. TIF shall not be used for projects that would place extraordinary demands on city
services or for projects that would generate significant environmental impacts.
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G. The developer must provide adequate financial guarantees to ensure completion
of the project, including, but not limited to: assessment agreements, letters of
credit, personal guaranties, escrow deposits, etc.
H The developer shall adequately demonstrate, to the City's sole satisfaction, an
ability to complete the proposed project based on past development experience,
general reputation, and credit history, among other factors, including the size and
scope of the proposed project.
I. For the purposes of underwriting the proposal, the developer shall provide any
requested market, financial, environmental, or other data requested by the City or
its consultants.
IV. SUBSIDY AGREEMENT & REPORTING REQUIREMENTS
All developers/businesses receiving tax increment financing assistance from the Golden
Valley HRA shall be subject to the provisions and requirements set forth by state statute
116J.993 and summarized below.
A. All developers/businesses receiving TIF assistance shall enter into a subsidy
agreement with the Golden Valley HRA that identifies: the reason for the subsidy,
the public purpose served by the subsidy, and the goals for the subsidy, as well
as other criteria set forth by statute 116J.993.
B. The developer/business shall file a report annually for two years after the date
the benefit is received or until all goals set forth in the application and
performance agreement have been meet, whichever is later. Reports shall be
completed using the format drafted by the State of Minnesota and shall be filed
with the Golden Valley HRA no later than March 1 of each year for the previous
calendar year. Businesses fulfilling job creation requirements must file a report to
that effect with the city within 30 days of meeting the requirements.
C. The developer/business owner shall maintain and operate its facility at the site
where TIF assistance is used until the end of the TIF District.
D. Developers / Businesses failing to comply with the above provisions will be
subject to fines, repayment requirements, and be deemed ineligible by the State
of Minnesota to receive any loans or grants from public entities for a period of
five years.
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APPLICATION FOR TAX INCREMENT FINANCING
A. APPLICANT INFORMATION
Name of Corporation/Partnership
Address
Primary Contact
Address
Phone Fax
Email
Attorney Name
Address
Phone Fax Email
Accountant Name
Address
Phone Fax Email
Contractor Name
Address
Phone Fax Email
Engineer Name
Address
Phone Fax Email
Architect Name
Address
Phone Fax Email
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lb
B. PROJECTINFORMA TION
The project will be:
_Industrial Greenfield: New Construction _Expansion
_Commercial Redevelopment: New Construction Rehabilitation
_Industrial Redevelopment: New Construction Rehabilitation
Other
The project will be:
_Owner Occupied
-----,leased Space
Project Address
legal Description
Attach Site Plan
Amount of Tax . Increment Requested for:
land Purchase $
Public Improvement $
Site Improvement $
Current Real Estate Taxes on Project Site: $
Estimated Real Estate Taxes upon Completion: Phase I $
(If Any) Phase II $
Construction Start Date:
Construction Completion Date:
If Phased Project:
Year % Completed
Year % Completed
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1'1
C. PUBLIC PURPOSE
It is the policy of the Golden Valley HRA that the use of Tax Increment
Financing should result in a benefit to the public. Please indicate how this
project will serve a public purpose.
Job Creation: Number of existing jobs
Number of jobs created by project
Average hourly wage of jobs created
_ New industrial development which will result in additional private
investment in the area.
_ Enhancement or diversification of the city's economic base.
_ Removal of blight or the rehabilitation ofa high profile or priority
site.
Other:
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D. SOURCES & USES OF FUNDS
SOURCES NAME
Bank Loan
Other Private Funds
Equity
Fed Grant/Loan
State Grant/Loan
EDA Micro Loan
10 Bonds
Tax Increment (present value of "pay as you go")
Other
TOTAL
USES
Land Acquisition
Site Development
Construction
Machinery & Equipment
Architectural & Engineering Fees
Legal Fees
Interest During Construction
Debt Service Reserve
Contingencies
Other
TOTAL
-4-
AMOUNT
$
$
$
$
$
$
$
$
$
$
AMOUNT
$
$
$
$
$
$
$
$
$
$
$
~q
E. ADDITIONAL DOCUMENTATION
Applicants will also be required to provide the following documentation.
1. Current financial statements and those for the past two years:
Profit & Loss Statement
Balance Sheet
2. Brief description ofthe corporation/partnership's business, including history,
principal product or service, etc... Attach as Exhibit I.
3. Names of officers and shareholders/partners with more than five percent (5%)
interest in the corporation/partnership. Attach as Exhibit II.
4. A but~for analysis (proforma). Attach as Exhibit III. (See example on page
-)
5. Application fee of $5000 (non-refundable)
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':10
The undersigned certifies that all information provided in this application is true
and correct to the best of the undersigned's knowledge. The undersigned
authorizes the Golden Valley HRA to check credit references and verify financial
and other information. The undersigned also agrees to provide any additional
information as may be requested by the City after the filing of this application and
to submit a supplemental application fee of $2,000 if the balance of application
fees previously submitted is expended.
I have received, and read, a copy of the Golden Valley Tax Increment Financing
Policy.
Applicant Name
Date
By
Printed name
Signature
Its
Printed name
Signature
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~1.
EXAMPLE BUT-FOR ANALYSIS
WITH NO WITH
TAX INCREMENT TAX INCREMENT
SOURCES AND USES SOURCES AND USES
SOURCES SOURCES
Mortgage 9,600,000 8,667,000
Equity 2,400,000 2,400,00
Tax Increment Financing 0 933,000
TOTAL SOURCES 12,000,000 14,000,000
USES USES
Land 1,500,000 1,500,000
Site Work 300,000 300,000
Soil Correction 468,000 468,000
Demolition 100,000 100,000
Relocation 65,000 65,000
Subtotal Land Costs 2,433,000 2,433,000
Construction 6,750,000 6,750,000
Finish Manufacturing 250,000 250,000
Subtotal Construction Costs 7,000,000 7,000,000
Soft Costs 350,000 350,000
Taxes 35,000 35,000
Finance Fees 850,000 850,000
Project Manager 542,000 542,000
Developer Fee 540,000 540,000
Contingency 250,000 250,000
Subtotal Soft Costs 2,567,000 2,567,000
TOTAL USES 12,000,000 12,000,000
I ncome Statement Income Statement
Sq. Ft. Per Sq. Ft. Sq. Ft. Per Sq. Ft.
Rent-Space 1 100,000 $8.00 800,000 100,000 $8.00 800,000
Rent-Space 2 25,000 $8.50 212,500 25,000 $8.50 212,500
Rent-Space 3 25,000 $9.00 225,000 25,000 $9.00 225,000
Other 0 $0.00 0 0 $0.00 0
1,237,500 1,237,500
Mortgage 20 Term 1,051,646 20 Term 949,439
9.00% Interest 9.00% Interest
9,600,000 Principal 8,667,000 Principal
Net Income 185,854 288,061
Total Return on Equity 7.74% 12.00%
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G:\HRAMISC\TIF\ApprovedTIF.doc
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