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City Council Study Session - 04/18/05 Minutes - Page 9 description and clarification of TIF Revenue Bonds and the City's risk; comparisons of bonds and notes; differentiation of notes held by the developer and not for resale; and letters of credit or building completion prior to bond issue, which would be explicitly outlined in a redevelopment agreement. Page 3 Calculation of Assistance Needed Discussion included the methodology for holding developers accountable and allowing the City to assure that the rate of return was complied with as a cap. Tax Increment Revenue Bonds Discussion included difficulties in attempting to model impacts, benefits and liabilities to the area and/or the overall city; hazardous substance subdistrict calculation for existing or proposed tax base; details of the Tax Increment Financing (TIF) Act and the City's TIF Policy; and specific findings for the City to authorize a hazardous substance subdistrict with the statute . . Imposmg a cap. Page 4 Discussion included Tax Increment Revenue Notes; Priority of Application of Tax Increment; Land acquisition prices; Land Sales Prices; Calculation of Redeveloper Margin and Limitation of Assistance; pro forma calculations referencing resale value, income streams, developer holding of some of the commercial property and the impact on the City with other forms of income; and reconciliation of residential and commercial property values at a fixed point in time, possibly 4-5 years, to close the City's investment on the project. Page 5 Construction Fund Administration and Accounting; Redeveloper Entity; Reconveyance/Assignment; Development Costs; Platting; City Public Improvements; Redeveloper Public Improvements; cost of environmental clean up related to sources and uses and impact on the overall financing package; risk assumptions of the developer; risks of removing existing taxpaying businesses; and identification of reimbursable costs.