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City of Elk River,Minnesota <br /> Stonesthrow Properties,LLC.request for Tax Abatement <br /> October 10,2014 <br /> Page 4 <br /> Tax Abatement Revenue Estimates <br /> Stonesthrow Properties,LLC. 12 Year City and 15 Year City and <br /> Abatement Project 12 Year County 12 Year County <br /> City Share of Revenues $270,769 $343,750 <br /> County Share of Revenues $65,832 $65,832 <br /> School District Share of Revenues $0 $0 <br /> Estimated Total Revenue $336,601 $409,582 <br /> Estimated Present Value of Total Revenues $252,168 $292,702 <br /> The above table illustrates the projected net revenues that tax abatement would generate for the proposed terms. <br /> The maximum abatement, based on the assumptions outlined above is projected to generate$270,769 with City only <br /> participation for 12 years, $336,601 with City and County participation for 12 years, $343,750 with City only <br /> participation for 15 years and $409,582 with City participation for 15 years and County participation for 12 years. All <br /> participation levels and amounts would be subject to individual policy and Board decisions following anticipated <br /> public hearings. Revenues captured through tax abatement and provided as reimbursement to the property owner <br /> for certain costs must be used only for those properties that benefit from the tax abatement. <br /> Abatement Assistance Scenarios <br /> The Developer's submittal included a 10 year operating pro forma beginning in 2015. The pro forma illustrates the <br /> developers projected revenues and costs associated with operating the commercial property. In the tables below we <br /> have illustrated the effect that abatement assistance will have on the pro forma. (Please note:we have amended the <br /> developers pro forma to include a 1% inflation factor on net operating income. In addition we have replaced the <br /> abatement assumptions with the maximum projected abatement revenues presented in Scenario 3 from the above <br /> Abatement Revenue table.) <br /> Scenario 1: Pro Forma Without Assistance: <br /> Year Abatement Net Cash Flow Debt Service Coverage Ratio <br /> 2015 $0 ($21,988) 0.88 <br /> 2016 $0 _ ($20,439) 0.88 <br /> 2017 $0 ($18,875) 0.89 <br /> 2018 $0 ($17,295) 0.90 <br /> 2019 $0 ($15,700) (191 <br /> 2020 $0 ($27,134) a86 <br /> 2021 $0 ($25,506) 0.87 <br /> 2022 $0 ($23,862) 0.87 <br /> 2023 $0 ($22,202) 0.88 <br /> 2024 $0 ($20,525) 0.89 <br />