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GAP STRATEGIES <br />N0.2 <br />��.�3,�1 Assessments <br />Special assessments include improvements to or installation of streets, curbs, <br />gutters, sanitary sewer, storm sewer, water, lighting, landscaping or any other <br />improvement generally owned by the public. The use of special assessments can <br />provide additional revenues to a project because the costs are spread over a number <br />of years and are paid semi-annually with property taxes. Special assessments <br />levied against housing are not use#'ul as a long-term financing technique, however, <br />because the special assessments must be paid off when a homebuyer obtains a <br />mortgage for a finished residence. <br />This requirement generally does not e�st for commercial properties. If the annual <br />special assessment levy is modest, potential tenants will pay the special <br />assessments along with their rent. If any of the conunercial uses are for larger <br />retailers, they may pay off the special assessments up front. Because of <br />Roseville's very competitive tax rate, a modest special assessment of �.�� per <br />square foot of building may be possible. <br />The following chart illusirates the present value of a special assessment revenue <br />stream. The chart assumes a retail and office square footage of 660,000 square feet <br />with the special assessments levied for 20 years at a 5.5% interestrate. <br />Assessmentver Sc�uare Foot Present Value <br />� .�S <br />.�� <br />�� <br />�� a�8�}��4 <br />3,9?�,��� <br />�+y7����� 1 <br />1� �f 34 <br />