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<br />November 16, 1995 <br /> <br />To: Steve Sarkozy <br />City Manager <br /> <br />Prom: <br /> <br />Ed Burrell <br />Finance Director <br /> <br />11:1 <br /> <br />Re: Arcma Taz IDcreaent <br /> <br />As the Council will recall, one of the major financial concerns <br />was that the Arona project generate at least $200,000 of tax <br />increment per year to assist in covering the debt service neces- <br />sary on the $6.5M Series 1995 Tax Increment Bond issue. <br /> <br />By developing only the south 6+ acres, achieving that goal is not <br />necessarily the same for all developers as the type of construc- <br />tion and density become significant. <br /> <br />Attached are copies of the work sheets comparing the fiscal <br />implications of the MSP and Rottlund proposals for the south 6+ <br />acres only. <br /> <br />The assumptions I have included in my analysis are: <br /> <br />Potential revenues from the north phase were not considered <br />since what the Council will ultimately decide about <br />the u.e of that parcel is yet unclear. <br /> <br />We are assuming the City's commitment on parking lot work <br />and other public improv.ments would be approximately the <br />aame under both propoaal.. <br /> <br />We are a..uming 1996 build out with occupancy by late <br />1996 and early 1997. <br /> <br />In aummary, the fiacal analysia indicate. that the Net Present <br />Value (NPV) of MSP and Rottlund are $3,136,579 and $1,755,624 <br />reapectively. <br /> <br />. <br />