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<br />J <br />J <br />J <br />I <br />I <br />I <br />I <br />I <br />1 <br />I <br />1 <br />1 <br />] <br />] <br />] <br />] <br />] <br />J <br />1 <br /> <br />Independent School District 623, Roseville, Minnesota <br /> <br />Special Assessments <br /> <br />In an effort to stimulate development and control the design and quality of the proposed public <br />infrastructure the City has developed an economical method to finance public improvements, <br />rough grading, and related engineering costs which are referred to as special assessments. <br />This method of financing is for a short period of time (up to four years) and is at a very <br />favorable below-market interest rate currently estimated at 4.00%. <br /> <br />The cost of the special assessments is included in the lot price being offered. When the lot is <br />sold, the special assessment is then paid off. <br />.. <br /> <br /> Targeted <br />llim1 1.QW tligh Assumption <br />Public Improvements $2,472,000 $3,708,000 $3,090,000 <br />Rough Grading (Private Lots) 485,000 850,000 620,000 <br />Engineering (Private Lots) 50.000 100.000 75.000 <br />Total $3,007,000 $4,658,000 $3,785,000 <br />Average Assessment Per Lot $15,264 $23,645 $19,213 <br />Assessment Interest Rate 4.00% <br /> <br />SOURCE: Original assumptions are based on information provided in the RFP and verified with City <br />staff. Final revisions were made based on discussions with Mr. John Thein and Mr. John <br />Shard/ow on Ju/y 14, 1994. <br /> <br />Investment Parameters <br /> <br />In order to analyze the present value of the future income streams over the three-year <br />development and sell out period and to calculate the short-term interest earnings of the project, <br />the following parameters were used. <br /> <br />Long Term (3-year treasury): <br />Long Term (duration of the development and sell~out period): <br />Short Term (60wday T-Bill): <br />Short Term (average days invested): <br /> <br />6. 38C1/o <br /> <br />3 years <br />4.07% <br /> <br />45 <br /> <br />SOURCE: Based on rates as quoted in the Wall Street Journal on July 18, 1994 and discussions with <br />Mr, John Thein. <br /> <br />Investme~t Earnings (Short Term) <br /> <br />In addition to the revenues from the sale of the lots, the project will realize short term interest <br />earnings. Exhibit B is a cash flow schedule based on the development program defined in <br />Exhibit A and the investment parameters listed above. <br /> <br />~ SPRINGSTED <br /> <br />Page 7 <br />