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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 /> 0 100% complete prior to December 31, 2013 <br /> o 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 8/1/13 present value date <br />