Laserfiche WebLink
City of Elk River, Minnesota <br /> Tax Increment Applications for Proposed Jackson Hill Residential Suites Housing Project and <br /> Elk River Lodge and Residential Suites, LLC <br /> January 25,2018 <br /> Page 3 <br /> • Maximum term of housing district(26 total years) <br /> • Increment based on difference between existing land value and new land/building value <br /> • Construction commences in 2018 and is completed in 2018 <br /> o 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 /> 0 8/1/18 present value date <br /> • Developer PayGO <br /> 0 90% pledged to developer <br /> 0 10% retained by City <br /> Tax Increment Revenue Estimates(Jackson Hills) <br /> The tax increment revenue estimates are based on collection of revenues for the full term of the Jackson Hills <br /> housing TIF district. Based on the assumptions previously outlined, the projected tax increment revenues to be <br /> generated from the project are shown in the chart below. Actual revenues generated by the project will be based on <br /> realized assumptions once the project is constructed and may be altered. <br /> Jackson Hills Residential Suites Housing Project TIF Amounts <br /> Total Gross Tax Increment(26 years) $1,340,872 <br /> City Retainage(10%) $134,082 <br /> Net Amount Available for Project(s)(90%) $1,206,790 <br /> Developer Requested Terms <br /> 25 years of tax increment at 90% $1,206,790 <br /> Estimated Present Value at 4.5% $677,707 <br /> Total estimated maximum amount per City policy(15 years) $773,580 <br />