8.0. EDSR 12-12-1994 - Laserfiche WebLink

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• Below is the current summary of the cash flow projections associated with District No. 9: TESCOM PROPERTY TAX CUMULATIVE YEAR PAYMENT* PAYMENT PAYMENTS 1994 $18,000 -0- -0- 1995 $18,000 $59,735 $ 59,735 1996 $18,000 $59,735 $119,470 1997 $18,000 $59,735 $179,205 Through the quit claim process, one additional year of property tax payments (that is, collecting tax increments) is required as follows: TESCOM PROPERTY TAX CUMULATIVE YEAR PAYMENT* PAYMENT PAYMENTS 1998 $18,000 $59,735 $238,940 *(Reimbursement for additional municipal services) You will note that over the life of District No. 9, the City/EDA collects nearly $239,000 which covers the City's project costs, including the addition of Lot 1, associated with this project. Although Tescom benefits as a recipient of a lot di that is quit claimed to it, the company is also obligated to pay an additional year's worth of property tax payments into District No. 9, plus an additional year of out-of-pocket payments as reimbursement for additional municipal services. The quit claim scenario results in a win/win situation. Tescom receives an additional lot for future expansion; the City/EDA recovers its expenses associated with District No. 9; and Tescom is agreeable to make an additional year's payment related to reimbursement for additional municipal services. Because Lot 1 was not referenced in the Contract for Private Development by and between the EDA and Tescom Corporation, an addendum to this agreement is recommended. The addendum will ensure that the conveyance of Lot 1 is consistent with TIF Plan No. 9. As further assurance that Lot 1 is used for the purposes provided in the TIF Plan, it is recommended the Tescom warrant and covenant that the site will be used by the company or its successors or assigns for expansion and places certain restrictions on the resale of Lot 1 during the lift of TIF District No. 9 so as to ensure that the objectives of TIF Plan No. 9 are met, etc.