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<br /> . <br /> . Sources <br /> Par Amount of Bonds $3,100,000 <br /> Accrued Interest 10,874 <br /> Total Sources $3,110,874 <br /> Uses <br /> Total Project Costs $2,766,088 <br /> Discount Allowance 38,750 <br /> Capitalized Interest 276,036 <br /> Finance Related Expenses 30,000 <br /> Total Uses $3,110,874 <br /> STRUCTURE AND REPAYMENT <br /> The Bonds are general obligations of the City of Arden Hills and as such are secured <br /> by a pledge of the City's full faith, credit, and taxing powers. It is the intent of the <br /> City to pay 100% of principal and interest from a pledge of tax increments collected <br /> in T<LX Increment District No.2, primarily from approximately 430,000 square feet <br /> . of commercial development proposed by Welsh in four phases. <br /> The repayment schedule has been structured to match anticipated collections of tax <br /> increment revenues. The assumptions include a change in commercial property tax <br /> class rates to 3.5%, an assessor's market value of $30 per square foot, and a total <br /> square footage of 430,000 square feet. All of these are conservative assumptions and <br /> still have a debt service coverage of 110% to 115%. Moderate assumptions (4% class <br /> rates and 500,000 square feet of construction) would show $140,000 more in tax <br /> increment per year with 160% debt service coverage. <br /> It is also anticipated that the 14th Street Improvements and Round Lake <br /> RoadIHighway 96 Intersection improvements will be secured by special assessments <br /> until each of the four commercial buildings are built. <br /> The Bonds would be sold February 9, 1998 and be dated February 1, 1998. The first <br /> interest payment on the Bonds will be August I, 1998, and semiannually thereafter <br /> on February 1 and August 1. Principal on the Bonds will be due on February 1 in the <br /> years 2001 through 2015. <br /> The revised projected debt service and flow of funds can be found in Exhibit 1. <br /> . <br /> Page 2 <br />