5.1 EDSR 10-20-2014 - Laserfiche WebLink

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City of Elk River, Minnesota Stonesthrow Properties LLC Proposed Tax Abatement Project October 10, 2014 Page 3 • First Year of Abatement o Assume estimated values assessed in January of 2015 for taxes payable in 2016 • 2014 tax rates remain constant through term(Rates Provided by Sherburne County) o City: 48.544% o County: 54.861% o School: 51.286% o Other: 4.987% o Total 159.678% • Class rates remain constant through abatement term • Fiscal disparities contribution-NA • 1%annual market value inflator assumed • Present Value Assumptions o 4%Discount Rate o Dated Date of December 31, 2014 Tax Abatement Revenue Estimates Stonesthrow Properties, LLC. 12 Year City and 15 Year City and Abatement Project 12 Year County 12 Year County City Share of Revenues $270,769 $343,750 County Share of Revenues $65,832 $65,832 School District Share of Revenues $0 $0 Estimated Total Revenue $336,601 $409,582 Estimated Present Value of Total Revenues $252,168 $292,702 The above table illustrates the projected net revenues that tax abatement would generate for the proposed terms. The maximum abatement, based on the assumptions outlined above is projected to generate$270,769 with City only participation for 12 years, $336,601 with City and County participation for 12 years, $343,750 with City only participation for 15 years and $409,582 with City participation for 15 years and County participation for 12 years. All participation levels and amounts would be subject to individual policy and Board decisions following anticipated public hearings. Revenues captured through tax abatement and provided as reimbursement to the property owner for certain costs must be used only for those properties that benefit from the tax abatement. Thank you for the opportunity to be of assistance to the City of Elk River. Please let us know how we can best assist you as this project moves forward and should you have any questions please feel free to contact us