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DATE: TO: FROM: SUBJECT: MEMORANDUM October 3, 1988 Steve North Craig A. Waldron Recent Concordia Correspondence The attached correspondence relating to the Concordia Project states that the Tax Increment is simply being used to purchase the Community Center and not to write down the cost of the land for housing. This statement is only partially correct, as staff has been analyzing this particular project from two particular perspectives. One perspective does accept the premise that the City is paying 2.6 million for a recreation center and Brutger is simply paying market rate of approximately one million dollars for the remaining 18 acres. However, another analysis is also correct that simply analyzes the 18 acres currently under consideration. At $3.00 a sq. ft., Brutgers would approximately be paying 2.3 million dollars for the 18 acres for housing development. Again, assuming that Brutgers can only afford to pay approximately one million dollars for the housing to work at a market rate, the City is in effect subsidizing the 18 acre housing development in the range of approximately 1.3 million and paying another 1.3 million for the recreation center. I should point out that the findings as they relate to Tax Increment, view this project from the perspective of a land write down that facilitates Brutgers housing development and provides the City the benefit of a recreation facility. I should also mention that in terms of the park dedication requirement, staff will be considering the required dedication as simply part of the acreage that is forthcoming to the City in this particular transaction. (The additional 8 acres of land, if valued at $3.00 per sq. ft., is in the range of 1,045,440).