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City of Elk River, Minnesota <br />GATR request for Tax Abatement <br />April 24, 2015 <br />Page 2 <br /> <br /> <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 /> <br /> City of Elk River proposed tax abatement <br />o Abate incremental land & building value: <br />o PID: 75-828-0110 <br />o 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 />o 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 />o Taxes payable 2017 <br />o 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 />o 4% Discount Rate <br />o Dated Date of December 31, 2015 <br /> <br />Tax Abatement Revenue Estimates <br /> <br />GATR <br />Abatement Project City Abatement <br /> <br />Estimated Annual Tax Abatement Revenue $36,454 <br />Total Estimated Tax Abatement Revenues (15 Years) $546,814 <br /> <br />Estimated Present Value of Total Revenues $389,722