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City of Elk River,Minnesota <br /> Stonesthrow Properties,LLC.request for Tax Abatement <br /> October 10,2014 <br /> Page 3 <br /> Tax Abatement Analysis <br /> In order to estimate the amount of tax 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 /> • City of Elk River proposed tax abatement <br /> o Abate existing land and building value: <br /> o PID: 75-659-0110 <br /> o EMV as of Jan. 2,2015 for taxes payable 2016 is$2,234,500 <br /> • Updated value estimate provided by Sherburne County <br /> • Sherburne County proposed tax abatement <br /> o Abate incremental building value <br /> o PID:75-659-0110 <br /> o EMV as of Jan. 2,2015 for taxes payable 2016 is$2,234,500 <br /> o EMV as of Jan. 2, 2014 for taxes payable 2015 is$1,743,400 <br /> o Incremental EMV for abatement is$500,000 <br /> • Estimated Market value at Completion <br /> o According to the County(Dan Weber)the Estimated Market value of the completed building will be <br /> $2,234,500 for taxes payable 2016 <br /> • Abatement term and participation <br /> o City: 12 years of total value or <br /> o City: 15 years of total value and County 12 years: Incremental value <br /> • First Year of Abatement <br /> o Assume estimated values assessed in January of 2015 for taxes payable in 2016 <br /> • 2014 tax rates remain constant through term(Rates Provided by Sherburne County) <br /> o City: 48.544% <br /> o County: 54.861% <br /> o School: 51.286% <br /> o Other: 4.987% <br /> o Total 159.678% <br /> • Class rates remain constant through abatement term <br /> • Fiscal disparities contribution-NA <br /> • 1%annual market value inflator assumed <br /> • Present Value Assumptions <br /> o 4%Discount Rate <br /> o Dated Date of December 31,2014 <br />