2A, Presbyterian Homes Tax Increment Financing Contract

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Patrick Klaers From: Stacie Kvilvang [skvilvang@ehlers-inc.com] Sent: Thursday, December 09, 2010 6:38 PM To: Jill Hutmacher; Patrick Klaers Cc: Sue Iverson Subject: TE Bonds vs Taxable Attachments: 1mage001.jpg Pat and Jill. In answer to Dave's inquiry I can answer"Why can't they do private financing?" To do private financing there will be an increased equity cost, likely in the 30 to 40% range (current amount is 16%) and would require personal guarantees,etc. This not only makes the project more cost prohibitive, but takes away from their benefit of being a non-profit(no guarantees, etc). Currently the market is more volatile and the difference between tax exempt bonds and taxable is not too far off from one another, especially in light of looking at longer term debt(35 years). In order to do an analysis I will need time to talk to underwriters to see what they are seeing in the market for conduit vs taxable bonds for these types of development. As you know, I am out of the office tomorrow but will make some calls. I won't likely have your answer - to this until Monday. If you need to talk to me tomorrow, call me on my cell at 612-801-7732. Stacie Kvilvang Ehlers 3060 Centre Pointe Drive Roseville, MN 55113 Direct 651-697-8506 Fax 651-697-8555 www.ehlers-inc.com EHLERS LEADLIRS IN PUBLIC FiroNGL- This e-mail and any attachments may contain information which is privileged or confidential. If you are not the intended recipient, note that any disclosure, copying, distribution or use of the contents of this message is prohibited. If you have received this e-mail in error,please destroy it and notify us immediately by return e-mail or at our telephone number, 651-697-8500. Any views or opinions presented in this e-mail are solely those of the author and may not represent the views or opinions of Ehlers and Associates, Inc. This email has been scanned for all viruses by the MessageLabs Email Security System. x