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<br />e <br /> <br />developer's agent, Mr. Chris Bulow of the Bruce Company will present an overview of <br />the project at the City Council meeting. <br /> <br />B. TIF REQUEST: The TIF assistance for this project totals $235,000, and is broken <br />down as follows: <br /> <br />- Site preparation, foundation removal, fill, compaction, etc. <br />- Land write down <br /> <br />$165,000 <br />$ 70,000 <br />$235,000 <br /> <br />The below-grade nature of this redevelopment site presents numerous development <br />challenges. TIF assistance is justified to bring the site up to certain construction-ready <br />standards. As with all TIF requests, the developer is basing his/her site preparation costs <br />on estimates. If site preparation can be accomplished utilizing one-half of the TIF <br />request, the developer is reimbursed that amount. Conversely, if actual site preparation <br />costs are double the TIF request, the developer is reimbursed up to the original estimated <br />request. <br /> <br />e <br /> <br />C. TIF RESTRICTIONS: A recent addition to the growing list of TIF restrictions <br />is that of prohibiting the developer from paying state aid losses incurred by a city for <br />creating new TIF Districts. For TIF District No. 12, it is proposed that the site, with <br />original acquisition costs estimated at $110,000, be written-down $70,000. Since this <br />is a benefit to the developer, the land write down, together with the site preparation costs, <br />brings the TIF assistance to $235,000. <br /> <br />The balance ofthe land acquisition costs not benefiting the developer ($40,000) will be <br />financed by way of a purchase money mortgage filed on the property. By coincidence, it <br />is estimated that the City could lose up to $40,000 in state aid as a consequence of <br />District No. 12. However, these costs are recovered by way of the purchase money <br />mortgage being repaid. At worst, the City leaves $40,000 "on the table" as a <br />consequence of District No. 12, and, as a consequence of the latest TIF restrictions <br /> <br />D. TIF REPAYMENT: The estimated finished market value (FMV) ofthe Kjellberg <br />redevelopment project is $625,000. It is estimated that this project will produce taxes of <br />$27,970. This is also the estimated captured increment as the redevelopment site is <br />currently tax-exempt, and therefore, produces no taxes. <br /> <br />To support the TIF request for District No. 12, it is necessary for the City to sell a taxable <br />TIF bond in an amount estimated at $202,000. Included in this bond issue are the <br />following costs: <br /> <br />e <br />