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City of Elk River,Minnesota <br /> Cornerstone Ford LLC Tax Abatement Project <br /> February 19,2016 <br /> Page 2 <br /> the project would proceed without assistance, however it must be determined that the project is in the public interest <br /> and that the benefits outweigh the costs. The City's current tax 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 City only participation <br /> • Abate incremental new value <br /> o PID:75-821-0105 <br /> o EMV as of Jan.2,2015 for taxes payable 2016 is$2,824,900 <br /> o Assumed to be'base'value of abatement <br /> • Estimated new value after construction is$3,799,800 <br /> o Value estimate provided by County Assessor <br /> o Incremental value of$974,900 would be abated <br /> o Partial value for payable 2018(75%total value) <br /> o Full value for payable 2019(100%total value) <br /> • Abatement term and participation <br /> o Request for City assistance for 15 years <br /> • Anticipated First Year of Abatement <br /> o Taxes payable 2018(based on partial value) <br /> o Construction commences in 2016 and complete by December 31,2017 <br /> • 2016 tax rates remain constant through term(Rates Provided by Sherburne County) <br /> o City: 46.606% <br /> o County: 50,522% <br /> o School: 39.233% <br /> o Other: 4.767% <br /> o Total 141.128% <br /> • Class rates remain constant through term <br /> o 1,5%first$150,000 market value and 2%value above$150,000 <br /> • 0%annual market value inflator assumed <br /> Cornerstone Ford LLC Proposed Tax Abatement Based on Applicant Request <br /> Participation and Number of Years City only for 15 years <br /> Estimated Annual Abatement Revenue(upon full buildout for taxes payable 2019) $9,087 <br /> Total Estimated Abatement Revenues $134,037 <br />