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City of Elk River, Minnesota <br />GATR request for Tax Abatement <br />April 24, 2015 <br />Page 2 <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 incremental land & building value: <br />• P I D: 75- 828 -0110 <br />• EMV as of Jan. 2, 2014 for taxes payable 2015 is 7500 <br />• Assumed to be `base' value of abatement <br />• Value estimate provided by Sherburne County website <br />• EMV as of Jan. 2, 2016 for taxes payable 2017 is $3,900,000 <br />• Land: $1,550,000 <br />• Building: $2,350,000 <br />• Total Value: $3,900,000 <br />• Value estimate provided by County Assessor <br />• Abatement term and participation <br />o City for up to 15 years <br />• First Year of Abatement <br />• Taxes payable 2017 <br />• Construction complete by December 31, 2015 <br />• 2015 tax rates remain constant through term (Rates Provided by Sherburne County) <br />o City: 47.190% <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% Discount Rate <br />o Dated Date of December 31, 2015 <br />Tax Abatement Revenue Estimates <br />GATR <br />Abatement Project <br />City Abatement <br />Estimated Annual Tax Abatement Revenue <br />$36,454 <br />Total Estimated Tax Abatement Revenues 15 Years <br />$546,814 <br />Estimated Present Value of Total Revenues <br />$389,722 <br />