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Proposed use of TIF 12 proceeds from. sale of land; futur... Subject: Proposed use of TIF 12 proceeds from sale of land; future tax increments From: ESANDS2612@aol.com Date: Sat, 16 Aug 2003 23:04:24 EDT To: johnk@usfamily.net CC: craig0456@attbi.com, tomkough@usfamily.net, dmaschka@gwest.net, gregoryschroeder@attbi.com, neal.beets@ci.roseville.mn.us You stated that you would like to give the $1.2 million proceeds from the sale of the land to the parks department in 1993 for park improvements and/or maintenance. In my opinion, that would be treating the sale proceeds as a "windfall" unrelated to TIF and contrary to the stated intent of tax increment funds -- to build the tax base through commercial development and housing. Please refer to my a mail of last week. This land was purchased with tax increment dollars from TIF 2; I believe the proceeds should be considered a repayment of a loan made to acquire this land, and left in TIF12 to be used for TIF purposes. It should not be considered a "windfall". Secondly, you want to borrow the necessary funds from some source in order to pay for the up front costs of developing the Applewood Pointe development, such as the- ponding and pathway and Terrace Drive extension, etc., estimated at about $1.1 million (plus interest on the loan). This loan would then be repaid from anticipated future of revenues from of 12. Finally, whatever is left of the future of proceeds you would use to fund appropriate HRA of projects now, again borrowing the funds in anticipation of a fixed determinable amount of future tax increments. It seems to me that you would be counting your chickens before they are hatched. we don't really know what the future of receipts will be. Are they dependent on how the value of the existing land is treated--whether or not that will be included in tax increment related to this new development? I have no knowledge of how this anticipated annual $200,000 of of was calculated. Also, the state legislature may make changes in either the property tax, or the of laws that may affect how much future of will actually be received. I view this as unnecessarily risky. My preference would be to play the game straight up. Use the $1.2 proceeds from the sale to fund the immediate development costs, estimated at $1.1 million. Then, as the future tax increments are actually realized, use them to fund future TIF housing projects under the control of the HRA, as determined appropriate by the Council at the time received. 1 would not object to advancing some TIF funds 1 of 2 8/18/2003 10:00 AM