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The County Assessor has the building valued at $5,140,600 for the 2012 assessment, taxes payable 2013. <br />Based on this value and the current tax rate, once the school becomes owner of the building (tax exempt) <br />the city will no longer receive approximately $48,569 in tax revenue annually. <br />In anticipation of the tax loss, staff had suggested the idea of a payment in lieu of tax (PILOT). The <br />school has proposed a payment in lieu of fee (PILOF) in lieu of the typical fees the city would receive if <br />the city were the conduit bond issuer. The PILOF amount totals $265,572.81 from 2013 thru 2043 or a <br />lump-sum at closing in the amount of $154,575. <br />The lease revenue bonds issued would be no obligation of the City of Elk River. <br />ATTACHMENTS <br />Spectrum's executive summary -project description <br />Payment in Lieu of Fees Schedule <br />Draft host approval resolution <br />Action Motion by Second by Vote <br />Follow Up <br />N:\Public Bodies\City Council\Finance\Tim\2012\I-Iostapprovalrequest.docx <br />