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<br />,.."t <br /> <br />03-20-00 22:34 <br /> <br />From-KENNEDY' GRAVEN <br /> <br />+S12337~310 <br /> <br />T-sse P.03/03 F-295 <br /> <br />Propo!ilal <br /> <br />The partieS a.gree (hat adjLlStmeuts should be made to ensure that all AvailO.lble Tax Inc.;remem <br />attnblltable tu t;.UCe~ pa1d in 1997. 1998 and 1999 sho~ld be applied first 10 pay the Series 1995A <br />Note held by the Rehbems. All rema.iIun:\ Av3.ilcilile Iax Increment should be applied to the <br />Series 1995B Note hell! by NFP. Wlth a addititJnal asSlstanCe for one year. <br /> <br />Following from those princ1pals, ilie City proposes as tallows. <br /> <br />1, 1997 tu,(es. ALlOka County has eletemlined not to adjust 1997 taxes to Jdltlct the <br />additlOfi01l S200,OOO in m3r}.;~t value. However. Ul order to implement the Ass~ssmcnt <br />Agrc::ement, NSP will pay to the City the amount representing the additional 'tax increment the <br />City wOllld have colltcted if the Assessment Agrel::nlent bad been honor'::ld fOJ pay 1997 {That <br />omOl.int is estimlited to b~ a.bout $12,000; it will be calculated assumir:.g, the propt:rty class rates <br />and ta}l. rates applicablt:: fortl.1.....es pa.Y;1ble In 19~7.) <br /> <br />2. FriO,. Paymt:l1rs 10 NFF. Nr'P Will rl;pilY to the City tbe amount of $24,16509. <br />Tcpres~nting the twO prior paym~nts it It.:ceived from th~ City. This am.ount rc:presents Avail;'lble <br />Tax increment tb~t will be rel111oC:2.ted to pay the Series 1995A Note. <br /> <br />3. Pay-oj}' of Serres 1995A NO/i, The City will pay to the Rc:hbems the tatal <br />oumia1ding princlpal and accrued lnt~rest on the Senes 1995A Note (interest accruing from <br />October 26, 1995. the OIigmat date of the Not~J. Th~t payment will be made wnh the amounts <br />descnh~d aba" e, <br /> <br />4, Payment of Series 1995B Noce. The City Will pay to NfP th~ balance 1.>1' the <br />amounts described above after th~ payoff on tht; Sc;:nes 1995A ~ore, plus tbe Avallable Ta,. <br />Increment froln thc= second-half taxes paId III 1999, (This i.rnount will offset a ponion of the <br />payments NSP miikes under par'-l8raph:i I and 2.) The Cit)' will then conHau~ to pOiy all <br />Available Tax Increment throu.gh the duration of the TrF Disrrh;t. <br /> <br />5_ Addlllonal ASSl.!>Tance LU NFP 1fNFP builds an adUltion to its mcllity In tile TIf <br />Disuict by January 2, 2003 ((or taxes payable Ui 2004), the Cn)' will grant ~ abatement of the <br />ell)"s shwre of ti.Ul.es on the ~IltIre facility one additional year (i.e , taxes payabk In 2006). Thl:i <br />.\Il1O\l11t will likely to be ~ufficietlt 10 compen~ate ,NSP for any balance left on the Note at <br />marunt), anLl 1.'.'111 also ne:p reimburse other costS in connection wlIh the Clddilion. <br /> <br />If \.he proposal is accepLabl~ to both the Rehbems and. l\FP. I unde!'stand !hat you will <br />recornm~nd approval by the Cit)' CO~lncil a:s soon as possible. If the CouncH approves. tht:: <br />parties will arr~n8e a pay-off elate, Ehlers will calculate the actual payment :lIno~nts. and I Win <br />prepare doc.1mcms nece~Sary to finalIze the transaction. <br /> <br />cc: SLd bunan <br />Sr.dly Eldridge <br />Carolyn DI'1.Lde <br /> <br />SJiI.l'77ll(J:h I <br />C'~ 155-7 <br />