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<br />----- I - <br /> tl <br /> .. ". <br />Memorandum, 1997 G.O. Bond Issuance I <br />Page Two <br />October 24, 1997 .. <br />The reconfiguration and signalization of the Highway 96/West Round Lake Road intersection <br />project costs are estimated to total $1,486,000. Major cost elements include property I <br />acquisition/relocation ($836,000) and new road/signalization/bridge lanes (5650,000). <br />Recapping these anticipated public improvement outlays below, the following reconciliation of I <br />estimated bond sources and uses is summarized in the table below. <br /> Fourteenth Street Relocation $1,204,450 I <br /> Hw)'. 96/Round Lake Intersection 1.486.000 <br /> Subtotal Public Improvements $2,690,450 I <br /> Capitalized Interest 291,425 <br /> Bond Issuance Costs 68.125 <br /> Bond Issue $3.050.000 I <br />TIF Revenue Assumptions I <br />As staff has put together various revenue assumptions in support of the debt service <br />requirements, the assumptions have been conservative in nature. They include: .. <br />1. A $30.50 market value per square foot for Phases II - IV <br />2. A zero percent inflation rate I <br />3. A tax rate of 3.50% on the commercial property <br />4. Debt coverage of at least 115% <br />These conservativc assumptions were utilized not only for debt service coverage, but also in I <br />recognition of the fact that the completion of the Gateway vision will also include other future <br />public improvements including significant land acquisition and street/utility improvements. I <br />Recommendation <br />Staff recommends that Council approve Resolution #97-48, "Resolution Providing for the Sale of I <br />$3,050,000 General Obligation Tax Increment Bonds, Series 1997 A," at the October 27, 1997 <br />regular Council meeting, subject to final execution of the Developer's Agreement and Welsh I <br />Company, LLC obtaining fee title to various properties required for buildings II, III and IV. <br />The Council had previously received a Bond Sale Report as prepared by the City's financial . <br />advisor, Ehlers and Associates, Inc. Ehlers will be providing an updated Bond Sale Report as a <br />bench handout at the meeting. Of note in this updated document the postponement of the Bond <br />Sale to November 17,1997 from the previous November 10, 1997 date. I <br />Enclosure -. <br /> I <br /> ----.---- <br />