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City of Elk River, Minnesota <br /> But For Analysis of Jackson Hills Residential Suites TIF Project <br /> March 24,2017 <br /> Page 3 <br /> 0 20%assessed in January of 2018 for taxes payable in 2019 <br /> 0 100%assessed in January of 2019 for taxes payable in 2020 <br /> • Payable 2017 tax rates remain <br /> o City: 46.193% <br /> o County: 50.458% <br /> o School: 36.659% <br /> o Other: 4.509% <br /> o Total 137.819% <br /> • Class rates remain constant through term <br /> o Residential rental rate of 1.25% <br /> o Classification of existing property as rental <br /> • 0% annual market value inflator assumed <br /> • Present Value assumptions <br /> 0 4.5% discount rate <br /> ■ (current private financing rate) <br /> 0 2/1/18 present value date <br /> • Developer PayGO <br /> 0 90% pledged to developer <br /> 0 10% retained by City <br /> o Approximately 10.5 years <br /> Tax Increment Revenue Estimates <br /> The tax increment revenue estimates are based on collection of revenues for the full term of the district. Based on <br /> the assumptions outlined above, the projected tax increment revenues to be generated from the project are shown in <br /> the chart below. Actual revenues generated by the project will be based on realized assumptions. <br /> TIF District <br /> Scenario <br /> Total Gross Tax Increment(26 years) $1,351,985 <br /> City Retainage(10%) $135,206 <br /> Net Amount Available for Developer(90%) $1,216,779 <br /> Developer Requested Terms <br /> Estimated Principal Amount $325,000 <br /> Estimated Interest(at 4.5%)Amount $109,483 <br /> Estimated Total Payments over approximately 10.5 years $434,483 <br /> Estimated Surplus (use to be determined) $782,296 <br />