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TIF Proforma preliminary TIF Pay As You Go pro forma is attached that demonstrates that the proposed senior housing and retail project would support the debt service requirements created by providing relocation assistance to the displaced businesses. This preliminary analysis would suggest that nine years of TIF payments would pay back the cost associated with providing business relocation assistance. This would require an eleven -year TIF project with the first two years covered by capitalized interest until the new facility is generating a full real estate tax. Surplus TIF The new development }s tax increment would generate a surplus for the City. The amount of sorp lu s would depend upon the City choosing to keep the d i strict functioning. 15-year district would generate approximately 1.6 million doll ars and a 20-year district would generate approximately $1,900,000 at 5%. The City does have the option of utilizing these surplus dollars in such projects as public improvement projects or affordable housing opportunities. Real Estate Tax Estimate The attached worksheet 2 demonstrates the calculation of real estate tax and TIF. Please note that for the retail portion, we did provide for the fiscal disparity portion not being subject to the TIF. The increase real estate taxes and TIF are as follows: Real Estate Tax TIF Senior Housing $1691658 $146,547 Retail 201,993 89886 Total I9M91 1552433 The existing real estate taxes on the Hamline Shopping Center are $42,852. The proposed project will increase the tax base by four hundred and forty -five percent, for almost four and a hall -fold increase. Redevelopment TIF The above males the assumptions that the TIF project would qualify as a "redevelopment project". That requires the existing Hamline Shopping Center to be found substandard under the statutory definition. A building official's certification based upon an engineer's inspection would be the typical approach. Page 2 Hamline Senior Mousing