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City of Elk River, Minnesota <br /> Stonesthrow Properties LLC Proposed Tax Abatement Project <br /> October 10, 2014 <br /> Page 2 <br /> • it expects the benefits to the city of the proposed abatement agreement to at least equal the costs to the city <br /> of the proposed agreement or intends the abatement to phase in a property tax increase, as provided in <br /> clause(2)(vii); and <br /> • it finds that doing so is in the public interest because it will: <br /> • increase or preserve tax base; <br /> • provide employment opportunities in the political subdivision; <br /> • provide or help acquire or construct public facilities; <br /> • help redevelop or renew blighted areas; <br /> • help provide access to services for residents of the political subdivision; <br /> • finance or provide public infrastructure; <br /> • phase in a property tax increase on the parcel resulting from an increase of 50 percent or more in <br /> one year on the estimated market value of the parcel, other than increase attributable to <br /> improvement of the parcel; or <br /> • stabilize the tax base through equalization of property tax revenues for a specified period of time <br /> with respect to a taxpayer whose real and personal property is subject to valuation under <br /> Minnesota Rules, chapter 8100. <br /> Tax Abatement Assumptions <br /> Springsted made certain assumptions to calculate the estimated amount of tax abatement revenue generated by the <br /> proposed new project. Those assumptions include the following: <br /> • City of Elk River proposed tax abatement <br /> • Abate existing land and building value: <br /> • PID: 75-659-0110 <br /> • 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 /> • Abate incremental building value <br /> • P I D: 75-659-0110 <br /> • EMV as of Jan. 2, 2015 for taxes payable 2016 is$2,234,500 <br /> • EMV as of Jan. 2, 2014 for taxes payable 2015 is$1,743,400 <br /> • 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 /> • City: 12 years of total value or <br /> • City: 15 years of total value and <br /> 0 County 12 years: Incremental value <br />