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. t ,. , . so that we have at least one year's capitalized interest. For example, if we were to go ahead and issue bonds and date them March 1 of 1982, our first interest would come due March 1 of 1983. six months' capitalized interest would not cover it because the assessments made this fall would not come in until next June. It's just one of those things that was overlooked. That slight amount of additional interest would have to be added. The current preliminary plat shows there are l6 lots, but there are two potential lots that are developable, which are adjacent to Lot 10 of Block 2, just south of Royal Lane. If we use a total of l8 lots, based on the base plan of $247,lOO, the assessments, if 100% assessed, would be $l3,728 per lot and if we use the alternate plan it would be $l2,706, approxi- mately $1,000 less. The idea is that if the project is approved, construction bids would be received this spring and construction would start this summer. Don thinks we could get the assessment roll in this fall so the first interest payment would commence beginning with real estate taxes collected next year. If that is the plan, we would then propose that this project be included with the others that are pending for financing and that later on this month we would have a resolu- tion before you covering all of the projects that are to be covered and we would have a bond sale roughly sometime by mid- March so that financing for this project, as well as the other ones that are pending, would be covered in one bond issue and you would have no need for any additional financing for the balance of the year. I would propose at that time to recommend, in view of the interest rate situation, that we have a tempo- rary bond issue, maturing three years from now. None of the bonds are going out over ten years now and they are all hitting l2%, which is the limit. In fact, Bond Buyer's Index is over 13% on the national level, which is the ceiling, as you know, in Minnesota. Most communities that are doing any financing now are doing it on a temporary basis. . As to over what period of time to include the assessments for the project, you might want to enter into a development agreement with the developer as to pay it back "in a three, four or five year period rather than spread it out over l5 or 20 years as we used to do because there's just no way we're going to accomplish this with assessments being over a longer period of time. That is something that will be considered at the time of the assessment hearing, but for purposes of at least some sideline discussion on it, our recommendation would be a three year bond issue and a development agreement to be worked out with the developer so that hopefully we wouldn't have to go into long term definitive financing much beyond the three year period. Under the new law, we do have the right to take care of temporary bond issues by another temporary bond issue, not to exceed three years, or final definitive financing.' Most communities today are financing over a ten year period. A few months ago it was 15. It's down to not 3