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Ms. Kvilvang stated it's similar to where it is current, a couple hundred thousand. The worst -case scenario, of 30%, total income in 2016 available for debt service of $1.3 million, PNC loan payment is $1.4 million. Even once you bring in the TIF from Allina and VA there still would not be enough to pay city bond portion. Commissioner Ramsey stated even at that point we are still servicing the debt on our bond. If we went out with the TIF is there zero risk for six years. Chairperson Elvig asked are we are still collecting $266,000 from them. Commissioner Ramsey asked are we still going to be able to pay our bond. Mr. Lazan commented to the discussion that the $1.06 scenario assumes they are expecting us to cover a short-term loan. They are still in at $2 million plus operating, personal and corporate guarantees; they are going to look to fill that gap before they ever default. Chairperson Elvig stated then what we are asking for is another $2 million so they are in it for $4 million. They are not going to walk way from $4 million. Commissioner McGlone commented that these scenarios don't contemplate any other developments happening or having any other TIF revenues. Ms. Kvilvang felt they had enough income generated that it is going to cover your obligations. HRA Executive Director Nelson asked if there is any concerns with regard to the bonding that is being proposed. As long as there is general consensus to proceed on that note, we would like to get back to Flaherty and Collins, stating what our offer is. Councilmember Wise asked why they want to see substantial construction of the train station. Mr. Lazan stated it has been their concern all along because this is part of this project. Councilmember Tossey has questions on the bonding of the TIF District, and coming up with the money for the train station. He expressed concern about us restricting our bonding authority within the TIF District. Is this going to affect us? Ms. Kvilvang stated based on this analysis, if we assume worst cast scenario of 15% less revenues, we will not be able to use that increment from the VA or Allina for anything else, setting that aside and waiting to year three to see if it's taken out so you have that protection. In the next 12 -24 months, other development may happen in The COR, and we would have the capacity to bond for more. Councilmember Tossey asked what is the restriction on how much we can bond over the revenue that we know that is coming into the district. Housing and Redevelopment Authority / July 19, 2011 Page 5 of 7