Correspondence 1985-1989 Dahlgren

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.. r June 4, 1986 TO: Jim Andre FROM: Howard Dahlgren SUBJECT: PLANNING OFFICE HOURS, WEDNESDAY, MAY 28, 1986 1. Doyle, 944-5810 Dennis Doyle is the President of Welsh Companies, a develop- ment and investment company that purchased eighty percent of Don Roberts holdings in Roseville. Dennis joined George Welsh eight years ago who, according to Dennis, has built 10,000 apartment units over a period of twenty-eight years in the metropolitan area. They current].y own and manage 1,100,000 square teet in Roseville, and four to five hundred apartment units. Some of their current projects include 200,000 square feet of high tech space in Eden Prairie (169 and Prairie , Center Drive), 105,000 of high tech on Trunk Highway 5, 45,000 square feet adjacent to Shelard Park, 8,000 square feet of shopping center in Plymouth, 105,000 square feet for AT&T in New Brighton, anci 75,000 square feet of of�ice/warehouse in Arden Hills. Dennis notes they do 25-36 million dollars in construction a years. They are interested in the Paper Calmenson site, the problem of which involves an acquisition at $7 million. Cos� of removal of existing structures is estimated at �2 mill,ion. D�nnis reviewed tax increment potential with Craig Waldron, who noted the potential for payback on a low interest loan basis rather than a direct write-down throu�gh a bond sale. Dennis noted that they have a financial institution partner. W� noted the possible advantage of investing their money, with the tax increment payments coming direct as the buildings go on line. Craiq noted that approximately 45-60 percent of the increment income goes to interest and bonding �xpenses under a typical bonding program. Dennis was interested in this approach, and will review the possible concepts with his people and get back to us. Assuming a$35 million ultimate development value, 40 percent for f iscal disparities (at b0 percent) equal $900,000 annual taxes. Subtracting $300,000 existing taxes leaves a net of � $600,000. Half of that (leaving 50 percent for interest and expenses) equal.s $300,000 per year. This wi11 support a fifteen year bond at 2.5 to 2.7 million. On a loan basis, this might be up to $405 million at, say 5 percent, over f ifteen years .