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MEMORANDUM DATE: June 3, 1988 TO: Jim Andre i FROM: Craig A. Waldron SUBJECT: Concordia School Pote ial I have had the opportunity to review the potential of the Concordia School site for the potential of the recreation center and a housing development. Essentially, the site is 21 acres and the asking price is $3.07 per sq. ft. The realtors inform me that Concordia would probably accept a price in the range of $31650,000. It appears that the site would work well. in which 10 acres would be used for the recreation area and 18.acres would be.. utilized for housing. I would suggest that the city consider purchasing the land (possibly go through the Port Authority or tax exempt lease) and turn around and sell the 18 acres to a housing developer. I would estimate that the 18 acres could be sold for $1.50 per sq. ft., thus producing $1,176,120.00. If the 18 acres were built with 15 units per acre, the tax increment in the ensuing years would be in the range of $370,000 to 460,000. A $3,600,000 15 year bond at 7.5% requires annual debt service of $400,469 per year. A $2,423,880 (3,600,000 - 1,176,120 band) 15 year bond at 7.5% requires $269,636 debt service. In summary, it appears that if the city can bond up front to purchase the property, this could be an excellent development in that it would meet both the recreation and housing needs of the city.