Agenda - Economic Development Authority - 02/15/2000

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- Other Costs Other costs would also be incurred in preparing this property for redevelopment, including providing city streets and utilities such as water and sewer service. This cost is presently estimated at $1,063,400. Relocation costs for Amcor were estimated by Conworth, Inc., relocation experts. It was estimated that relocation of the Amcor business could cost between $750,000 and $1,000,000. Sauter Property The Sauter property is approximately 10 acres and is located to the north of Highway 10 and on the west side of Sunfish Lake Boulevard. There are presently two commercial buildings and one residential building located on the property. This property is important to the city with regard to redevelopment since it is located at a strategic location that serves in some ways as an entrance point to the City of Ramsey. Redevelopment of this property consistent with the standards of the city could result in significant improvement of the overall appearance and value of this part of the community. FINANCIAL ANALYSIS Financing Options Considered Springsted, Inc, public financial advisors, conducted an analysis including a review of tax increment financing options and tax abatement options. Tax increment financing could include doing the project within an Economic Development district or a Redevelopment district. After analysis of the property and discussions with a legal advisor to the City, it was determined that the optimal analysis for this property would be to assume that it would financed under redevelopment tax increment financing (TIF). Key Assumptions of the Analysis Several assumptions were made and serve as the basis for the financial review, including the following: [Nick to provide] Anticipated Bonding Capacity_ Given the assumptions outlined and assuming Redevelopment TIF, the following bonding amounts could be generated for the Makens and Sauter properties respectively: