Laserfiche WebLink
City of Elk River,Minnesota <br /> Morrell request for Tax Abatement <br /> June 23,2015 <br /> Page 2 <br /> the project upon completion and net operating income available to support debt service,it can be determined that the <br /> project would not proceed "but for" the assistance. It is important to note that tax abatement does not statutorily <br /> require a "but for" analysis to determine if the project would proceed without assistance, however it must be <br /> determined that the project is in the public interest and that the benefits outweigh the costs and the City's current tax <br /> abatement policy requires this finding be made. <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 /> o Abate incremental land&building value <br /> o PID:75-820-0205 <br /> o EMV as of Jan. 2,2014 for taxes payable 2015 is <br /> • Assumed to be`base'value of abatement <br /> • Tax exempt property owned by EDA with no taxable value <br /> • Value estimate provided by Sherburne County <br /> o EMV as of Jan. 2,2016 for taxes payable 2017 is$859,000 <br /> • Total Value: $859,000 <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 />