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M E M O R A N D U M DATE: June 29, 1989 TO. Planning Commission Members FROM: Craig A. Waldron SUBJECT: Financing for the Post Office With respect to the proposed Post Office, I have been working of coun the f .nancing package that could be reviewed by the City if the Planning Commission should deem the modified proposal to be acceptable. If th e Council should determine that tax increment financing is feasible, the proposal could be structured as follows: 1. The City can use tax increment for land write down purposes enses incurred by the developer. to offset additional exp is $298,400 according to Ramsey The current land value County. Roseville Properties had originally hoped for $200,000 to 2. art of the building and facilitate the removal of the front p It is my construct the additional 000t wouldsie be improvements. morappropriate. recommendation that $ year offset for lost rent for This figure is based on a two y the 12, 000 sq. feet plus the actual The developer ost Of the demolition be of the front part of the building. losing $325,000 in building value and future tents. Roseville Properties has also stated 000a to $150,000the Site improvement costs are in the range of $ aid down by The existing mortgage will also have to be p Rosev 41le Properties in order that �atchc�s the actualthe new asset loan (without the front of the building) amount. completely contingent on a Again, �this potential financing is building that is acceptable to the Planning Commission And City' Council. At that point in time, the City Council would haVe to Council. whether it would want to utilize tax increment for the purposes of the most Office.