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Page 1 of 2 Driscoll, Margaret From: ESANDS2612@aol.com Sent: Monday, March 15,2004 10:11 PM To: city.council@ci.roseville.mn.us Cc: neal.beets@ci.roseville.mn.us; dennis.welsch@ci.roseville.mn.us Subject: TWIN LAKES AREA SOURCES AND USES PROJECTION Everyone was so intent on discussing the Developer Contract, no one took up the issue of the huge, and probably insurmountablefinancing gap that your consultant, Jim Casserly talked about. In my view, until that financing "gap" is filled, there is no point in proceeding; and we are doing the prospective developers a disservice by egging them on. Please look at your handouts. No use talking about the 170 acre projection. That is too large a gap to be even possible. A $75,800,000 GAP AFTER APPLICATION OF $50,000,000 OF TIF spells a dead duck. The 67.8 acre project, ( the Area 1-5) projection is also dismal, and unless some major decisions are made quickly, probably won't happen either. That projection shows a shortfall gap of $27,300,000 AFTER APPLICATION OF $19,100.1A0 OF TIF. I assume that the $19,100,000 million of TIF proceeds is the maximum amount that can be reasonablyforecast to occur because of the development. That means the city has to find other sources of financing for $27,300,000, even assuming the Council is willing to use TIF. That is a huae nut to crack. All I can suggest to all of you is that Jim Casserly be hired to get going and provide the council with a menu of options to fill that gap. I don't see where he can come up with that amount of money. But lets ask him to try. SOON. Until the City finds a way to finance this 70 acre project, I think we are doing a disservice to the developers to hold out hope to them. Jim's analysis shows that it will cost the city /developers $12.76 per Sq. ft. to acquire the land, $4.94 to relocate and do site preparation, and $4.67 for landscaping, streets, etc. That totals $22.38 cost per sq. foot, with only $6.67 a sq. ft. from land resale. That is a whopping $15.70 per sq. ft. shortfall. TIF will only cover $6.46. Leaving a shortfall of $9.24 per sq. foot, or a total shortfall of $9.24, or $27,300,000. I don't think TIF was ever intended to take care of this large a shortfall in the difference between purchase costs and resales of land. It is just too much, even for TIF. �� ��16�'��