CCP 10-27-1997 - Laserfiche WebLink

Home Browse Search

I I. Sources I Par Amount of Bonds $3,050,000 Total Sources $3,050,000 . Uses Total Project Costs $2,690,448 I Discount Allowance 38,125 Capitalized Interest 291,427 Finance Related Expenses 30,000 I Total Uses $3,050,000 , STRUCTURE AND REPAYMENT I 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 I increment revenues. The assumptions for the collection of these tax increments are found in Exhibit 1. 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 I 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 . tax increment per year with 160% debt service coverage. I It is also anticipated that the 14th Street Improvements and Round Lake 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 lO, 1997 and be dated December 1, 1997. The I first interest payment on the Bonds will be August 1, 1998, and semiannually thereafter on February I and August I. Principal on the Bonds will be due on February I in the years 200 I through 2015. . I The projected debt service and flow of funds can be found in Exhibit 2. The tax ,- increment cash flow is found in Exhibit 3. I Page 2