CCP 10-14-1997 - Laserfiche WebLink

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. - Sources Par Amount of Bonds $3,050,000 Total Sources $3,050,000 Uses Total Project Costs $2,690,448 Discount Allowance 38,125 Capitalized Interest 291,427 Finance Related Expenses 30,000 Total Uses $3,050,000 STRUCTURE AND REPAYMENT The Bonds are general obligations of the City of Arden Hills and as such are secured by a pledge of the City's full faith, credit, and taxing powers. It is the intent of the City to pay 100% of principal and interest from a pledge of tax increments collected in Tax Increment District No.2, primarily from approximately 430,000 square feet of commercial development proposed by Welsh in four phases. - The repayment schedule has been structured to match anticipated collections of tax increment revenues. The assumptions for the collection of these tax increments are - found in Exhibit I. The assumptions include a change in commercial property tax class rates to 3.5%, an assessor's market value of $30 per square foot, and a total - square footage of 430,000 square feet. All of these are conservative assumptions and still have a debt service coverage of 1l0% to 115%. Moderate assumptions (4% - class rates and 500,000 square feet of construction) would show $140,000 more in I tax increment per year with 160% debt service coverage. It is also anticipated that the 14th Street Improvements and Round Lake 1 RoadlHighway 96 Intersection improvements will be secured by special assessments until each of the four commercial buildings are built. I The Bonds would be sold November 10, 1997 and be dated December 1, 1997. The first interest payment on the Bonds will be August I, 1998, and semiannually I thereafter on February I and August 1. Principal on the Bonds will be due on February I in the years 2001 through 2015. 1 The projected debt service and flow of funds can be found in Exhibit 2. The tax increment cash flow is found in Exhibit 3. .. l Page 2