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City Council Study Session — 07/19/04 DRAFP Minutes - Page 20 Mr. Casserly and Mr. Johnson reviewed the financial analysis and assumptions in great detail, including proposed square footages of business, retail and housing units; cash flow and present value analysis using various assumptions; projected market values of taxes payable in 2005 and current market value; local and state tax rates; fiscal disparity considerations; projected tax increment tax flow; phasing of redevelopment; total increment generation over 25 or 26 years; bond and revenue note analyses; and the amount of tax increment generated by the proj ect. 1) Discussion included revenue streamjustification in bonds; impacts of inflation; debt service on a bond issue for principal and interest; administrative costs in the TIF' district; revenue sources and uses; gap strategies and ranges; contingencies; and advancing project costs. Mr. Casserly reviewed, and Councilmembers discussed, individual gap strategies for considerationin detail, including: 1) Twin Lakes Parkway issues; 2) Special Assessments; 3) Reduced Contingencies; 4) Reduced City Administrative Fees; 5) Off-Site Road Improvements; 6) Award of Environmental Remediation Grants; 7) General Obligation and Revenue Bond Issuance; 8) Higher Land Payments; 9) Hazardous Substance Subsidies; 10)Fiscal Disparities Outside Tax IncrementDistrict; 11) Revenue Note from Inflation and Coverage; and 12) Combination of Gap Strategies 4, 7, and 10. Discussion included gap strategies used at the Applewood Pointe project to cover administrative costs; administrative costs currently being incurred on the Twin Lakes project (i.e., legal, consulting, bookkeeping costs); grant availability; interest rate projections and the conservative projections used; tax exempt bond rates versus taxable rates; Port Authority of the City; pledged revenues and securities; TIF revenue bonds; ways to reduce deficit with higher land values and factors that go into