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Memo <br /> <br />Date: <br /> <br />Fi'()ITi: <br /> <br />9/22/2005 <br /> <br />James E. Norman, City Administrator, Patrick Trudgeon, Community <br />Development Director, Diana Lund, Finance Director <br /> <br />Scan M. Sullivan, Economic Development/TIF Spec~ <br />Estimated Revenues for Ramsey Town Center Pro~t <br /> <br />The Ramsey Town Center project is starting to take shape in the City of Ramsey. <br />Much nccded infrastructure has been installed and development continues to increase <br />in intensity. It has been approximately 2 years since the first estimation of taxes was <br />done internally. It is appropriate to do another estimate now to account for projects <br />ah'cady built and others that will be coming soon. <br /> <br />'l'he assumptions used in the tax estimate are as follows. The residential component <br />is based on the construction of 2,400 units ranging from $220,000 to $350,000 per <br />unit in value. The residential units are phased in over an 8 year period and are <br />documented on the attached analysis. The commercial component was estimated by <br />utilizing the Ramsey Town Center "Master Plan" map. This map has each individual <br />buikling identified by a square footage and a building type. The land values range <br />fi-om 8 to 9 dollars per square foot. The commercial building values range from 80 <br />to 1 l0 dollars per square foot. The speed in which development occurs is also <br />estimated. Changes in assumptions can be made using the model that has been <br />assembled if there are alternative scenarios that need to be looked at. This model has <br />thc ability to "plug-in" projects that have already occurred or ones that might be <br />considered. This estimate assumes that there will be some projects that do not <br />generate taxes for the City. Projects such as the Municipal Center, Fitness Center, <br />Pact Charter School, Senior Housing, and a possible Theatre project will not show <br />revenue to the City. <br /> <br />This estimate provides a look into how revenues would be generated if the City were <br />to keep its tax rate at its current level. Upon total build-out, estimated to be in 2015, <br />the City revenue generated by the Town Center Project alone would be $3,858,832 <br />annual ly. Details of the how the numbers were arrived at are attached. <br /> <br /> <br />