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<br /> The financial analysis indicates that a significant amount of money is required to make any <br /> development occur on these properties, either individually or collectively. The City has already <br />. taken on $3.1 million in debt on Phases I, II, III, and IV oftbe GBD. The City estimates that its <br /> maximum indebtedness for bonding purposes is approximately $7.5 to 8.0 million. The <br /> development of the Morris site ($5.0 million of public improvements) would require the City to <br /> take on an additional $6.835 million in debt. The development of the Morris and Vaughan sites <br /> ($11.3 million of public improvements) would require the City to take on an additional $15.615 <br /> million in debt. The Staff would argue against allocating this amount of debt to such a small <br /> portion of the City. The Staff would argue that the City has "set the plate" for development of <br /> these sites and that the developers and their institutional lenders should underwrite this debt. The <br /> City can implement this policy through the "pay as you go" approach as allowed under the Tax <br /> Increment Financing (TIF) laws. The TIF "pay as you go" approach would require the developer <br /> to take all the risk (ie., expenditures) of the project without the guarantee ofa return. However, <br /> if there were T1F revenues generated then they would receive those to offset their expenditures. <br /> The aforementioned policy summaries are intended to facilitate City Council discussion on these <br /> topics. After the worksession, the Staff will modify these policy summaries so as to clearly <br /> reflect the City Council wishes to potential developers of these sites. <br /> Impacts on the proposed road improvements to Round Lake Road <br /> Lastly, dependent upon the conclusion of the discussions of the three aforementioned policy <br /> summaries the planned improvements to Round Lake Road may need to be modified. The Staff <br /> intends to use these discussions to help frame its recommendation on planned improvements to <br />. Round Lake Road, which should be available to the City Council at its October 26, 1998 <br /> meeting. <br />. <br />