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City of Elk River, Minnesota <br />Preferred Powder Coating request for Tax Abatement <br />June 20, 2013 <br />Page 3 <br />total project costs and would be financed through tax abatement financing, Based on the provided information in the <br />application and additional back -up information from the applicant, it appears the financial assistance requested from <br />the City and County would be provided as an upfront source. <br />Tax Abatement Analysis <br />In order to estimate the amount of Abatement revenues generated by the proposed development, certain <br />assumptions were made based on the value of the project, construction schedule, and anticipated financing terms. <br />• Abate incremental building value only: <br />o Estimated Total Market value of $3,855,000 (Building value provided by Assessor) <br />® Base value of land <br />• PID:75- 820 -0305 <br />• EMV as of Jan. 2, 2013 is $815,900 <br />® Abatement term (maximum): <br />o 20 year abatement — City and County <br />® Construction commences in 2013 <br />• 100% complete prior to December 31, 2013 <br />• assessed in January of 2014 for taxes payable in 2015 <br />® 2013 tax rates remain constant through term (Rates Provided by Sherburne County) <br />• City : 50.373% <br />• County: 54.420% <br />• School: 50.058% <br />• Other: 5.264% <br />• Total 160.115% <br />® Class rates remain constant through abatement term <br />® Fiscal disparities contribution - NA <br />® 0% annual market value inflator assumed <br />® Present Value assumptions <br />0 4 %, 2% and 3% discount rates <br />0 811/13 present value date <br />