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<br />Table 2: Land Repayment Options <br /> <br />Financial Feasibility of Land Repayment Options <br /> <br />Total Estimated Net Tax Increment and Present Value with <br />0% interest rate $1,416,031 <br /> <br />Portion of Land Purchase Price Required Upfront $0 <br />Portion of Land Purchase Price as Write Down $1,372,140 <br />Estimated Interest Payments $0 <br /> <br />Total Estimated Net Tax Increment Present Value with <br />3.5% interest rate $1,141,921 <br /> <br />Portion of Land Purchase Price Required Upfront or via <br />Shortfall Agreement $272,140 <br />Portion of Land Purchase Price as Write Down $1,100,000 <br />Estimated Interest Payments $272,978 <br /> <br />Total Estimated Net Tax Increment Present Value with <br />5% interest rate $1,058,720 <br /> <br />Portion of Land Purchase Price Required Upfront or via <br />Shortfall Agreement $347,140 <br />Portion of Land Purchase Price as Write Down $1,025,000 <br />Estimated Interest Payment $379,662 <br /> <br /> <br />The developer has also indicated the potential for a 40,000 square foot building expansion. Should the building <br />expansion occur during the term of the TIF District and generate additional revenues sufficient to repay the City’s <br />interfund loan in full plus interest at 3.5% or 5% (actual interest rate TBD), there may be consideration to increase <br />the interfund loan amount at that time to reimburse the developer for the initial upfront purchase. Additional <br />discussion on potential feasibility anticipated to occur. <br /> <br />An alternate option to adjusting the upfront purchase price based on availability of tax increment revenues would <br />be to incorporate a shortfall payment formula that could be calculated on either an annual basis or at a future <br />determined time (tied to construction of expansion and/or completion of TIF District). As illustrated in the table <br />below, construction of the building expansion is expected to generate additional increment that is expected to be <br />sufficient to support repayment of the full land write down amount of $1,372,140 plus interest (TBD). <br /> <br />Table 3: Additional Land Repayment Options <br /> <br />Land Purchase Price $1,372,140 <br /> <br />Total Estimated Net Tax Increment and Present Value with <br />0% interest rate $1,854,232 <br /> <br />Total Estimated Net Tax Increment Present Value with <br />3.5% interest rate $1,466,353 <br />Total Estimated Interest Payments (3.5%) $339,593 <br />Total Estimated Net Tax Increment Present Value with <br />5% interest rate $1,331,916 <br />Total Estimated Interest Payments (5%) $532,953 <br /> <br />Page 40 of 64