CCP 10-14-1997 - Laserfiche WebLink

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,- .~ ... Memorandum, 1997 G.O. Bond Issuance - Page Two October 9, 1997 The reconfiguration and signalization of the Highway 96/West Round Lake Road intersection project costs are estimated to total $1,462,000. Major cost elements include property acquisition/relocation ($836,000) and new road/signalization ($625,000). Recapping these anticipated public improvement outlays below, the following reconciliation of estimated bond sources and uses is summarized in the table below. Fourteenth Street Relocation $1,224,000 Hwy. 96/Round Lake Intersection 1.462 000 Subtotal Public Improvements $2,686,000 - Capitalized Interest 295,000 Bond Issuance Costs 69.000 Bond Issue $3.050.000 TIF Revenue Assumptions As staff has put together various revenue assumptions in support of the debt service -- requirements, the assumptions have been conservative in nature. They include: - 1. A $30.50 market value per square foot for Phases II - IV 2. A zero percent inflation rate - 0 A tax rate of3.50% on the commercial property ,). I 4. Debt coverage of at least 115% These conservative assumptions were utilized not only for debt service coverage, but also in I recognition of the fact that the completion of the Gateway vision will also include other future public improvements including significant land acquisition and street/utility improvements. Recommendation I Staffrecornmends that Council approve Resolution #97-48, "Resolution Providing for the Sale of I $3,050,000 General Obligation Tax Increment Bonds, Series 1997 A," at the October 14, 1997 regular Council meeting, subject to final execution of the Developer's Agreement and Welsh Company, LLC obtaining fee title to various properties required for buildings II, III and IV. I I -- I