CCP 07-19-2004 - Laserfiche WebLink

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Mcmo to EDA Indykiewicz Property Page 2 of2 >- After taking into account the future County reimbursement and the sale of surplus equipment after the acquisition ofthe Indykiewicz property, our net cost for the property is $1,026,333. . >- Our carrying cost for the property, or our lost interest had we chosen not to acquire the property, is $174,331 to date. If we elect to retain the property until 2010, or carrying cost would be $553,659. Carrying cost for the property for years up until 2014 along with a cumulative total are outlined on the attached spreadsheet. Potential appreciation in the value of the property is not included in the analysis. >- This property is currently within an existing tax increment financing district. As such, once improvements to the property are made, the City will receive the City, County, and School District taxes until 2014 when the district is decertified. The gross cash flow associated with this revenue stream is estimated at $240,836. This does not factor in any retail space beyond the gas station/c-store. >- The area associated with the remnant parcel is estimated at 172,066 square feet. Below is a table that summarizes the total cost of the property based on our original purchase, appraisal, current offer, and a proposed counteroffer. Net Present Value PSF SubTotal of Tax Increment Total Original Purchase Price * $ 4.29 $ 738,163 $ 738.163 flppraised Value $ 5.25 $ 903.347 $197,847 $1,101,193 -. Current Offer $ 4.14 $ 711,700 $197.847 $ 909,547 ..~,~ Proposed Counter Offer $ 5.50 $ 946,363 $197,847 $1,144,210 ,.. This is th~.F!!~~<!se price for the remnant property only. The portion of pro-party used as Dart of the pond construction and realionment of West Round Lake Road are not included. This results in a lower total value. I . Requested Action Authorize staff to negotiate a price and general terms subject to EDA approval. .