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........�........r�... OC' 3 v8 <br /> yrII <br /> • 4 5. <br /> PELSTRING CAPITAL CORPORATION <br /> 4205 Lancaster Lane North lo Suite 1100*Minneapolis,MN 55441 <br /> October 28, 1998 <br /> Mr. Paul Steinman <br /> Economic Development Director <br /> City of Elk River <br /> P.O. Box 490 <br /> Elk River, MN 55330 <br /> Re: Associated Developers of the Twin Cities, Inc. <br /> Tax Increment Financing Request <br /> Dear Paul: <br /> On behalf of Associated Developers of the Twin Cities, Inc., I appreciated the opportunity <br /> • to meet with you and review your offer for Tax Increment Financing assistance. Following <br /> review of the proposed assistance package, which is in response to Associated Developers' <br /> application for assistance, Associated Developers has revised its original request as a result <br /> of the discussions we have had over the past number of months. <br /> From our meeting, we understand that the City of Elk River has tied the proposed <br /> assistance directly to the public improvements, particularly the construction of Tyler Street <br /> and the utility trunk lines. <br /> Review of Associated Developers' proformas and the excessive development costs <br /> associated with developing the site, results in Associated Developers' need for <br /> reimbursement for not only the public improvements, but also for certain site costs. <br /> In reviewing Associated Developers' request for assistance, we adjusted our financial <br /> analysis to recognize the actual public improvements (to be assessed) against the property <br /> to be approximately $6,000 per acre. It is important to recognize that the City's approach <br /> providing TIF assistance solely for the public improvements does not significantly improve <br /> the developer's proforma. The land is being sold at cost plus assessment basis, and as <br /> such, the developer does not reduce its costs or increase revenues. <br /> • Accordingly, in reviewing the cost of the public improvements, as well as certain costs <br /> which Associated Developers believes are augmented in part by the location of Tyler Street <br /> (612)550-7980 800-642-6258*(612)550-9221 Fax G31'@ pelstring@earthlink.net <br />