SUPER BLOCK
. DATE' April 12, 1985
TO. Mayor and Councll
FROM: Kevin Locke, Jlm Kerrlgan, Scott Renne
SUBJECT: Superblock
The Superblock plan as presented on Aprll 2, 1985 has been analyzed
(computer analysis enclosed). The assumptions behind the analysis are:
1) The cost of acquiring Burschs would be $1,000,000 for
land and building. This preliminary estlmate is based on an
appraisal Russ Bursch had done by Capltal Appralsals. The
figure excludes furniture, flxtures, equipment, goodwill, or
relocation.
2) Bond rate of 8.5%, wlth a 15 year term amortlzed over 13 years.
3) Land resale prlce of $4.50 per square foot.
4) The proJect would be completed as of January 2, 1987 for taxes payable
in 1988.
5) The development is assumed to be a 130 unit hotel wlth 32,000 square
feet of office and retail space with Burschs remodeled and integrated
into the hotel. The completed market value is estlmated to be
$7,600,000.
As analyzed, the development supports public asslstance of about $2,500,000.
(i.e. the project supports the level of assistance requested by B.R.G. with the
exceptlons of IRB's). The City would provlde the developer with the cleared
site at $4.50 per square foot or a total of $438,471 but not charge anything
for the Burschs structure. The City would not aid in the cost of constructlng
the parking ramp. A tentative tlme table is included ln the analysls.
Our IRB questlonaires that we have recelved have been generally negative.
Eden Prairle said that they may have $1 milllon to share ln a few months and
some other citles have said they would wait until fall before absolutely
declding no but it would appear to be very difficult to obtain $17.5 mlllion
In IRB capacity for the Superblock and Specialty block.
...
li
BA~~t~SRE~l t? /~~LJUr:' "SlJF='E~~ BLOCI " F'ROf'USf'-)l_
F'HPISE 1 A
.1 NANC I NG AL TCRNA T I VE: A (8. 5~~ BOI\ID:3)
*~*~*~~**~***~~~*~*****~*****~~**~~*~~~~~~~*~~~~~~***~4~*~~*~~
PUBLIC COSTS
cOI'm [ rIcms
AOUISITION:
RELOCATION:
DEMOLITION:
ADMINISTRATION:
CONTINGENCY:
F'AR~ ING RAMP FUND
1650000
95000
85000
91500
18:'000
o
ANm '(SIS PEF~lOD:
INTEF\'EST RATE:
BOND AMORl PERIOD
LAND {~I;:EA (:-3. F= " ) :
LAND ~'RICE/SF:
LAND SALE AMOUNT:
RESIDUAL BLUG.VAl:
TOTAL PROP. SALE:
SUB-TOTAL ~104500
CAPITALIZED INTER. :'861:'9
EFFECTIVE TAX RA1~
BPlt3E r::M\/:
CLEARED LAND VALUE
FUTURE EI'1'J:
CAPTURED EMV:
INFLATION RATE(BV)
INFLATION RATE(PP)
YEARS 10 1ST INCR:
TOTAL BOND AMOUNT
:24906:'9
"
15
.085
1 :.
974:'8
4.50
4:'8471
o
4-:::.8471
.0411768
79:'80(1
4:'8471
7600000
6606~OO
o
o
*********~******~*~******~****~*********~~~****~*******~***~*
lAX INC~EMENT P~OJECTION
~********~******~*~******~********~****************************
YEAR BASE EMV ACT EMV CAPTURED EMV TAX INCREMENT
JAN ~ JAN ~
1986 99-:'800 438471 0 I)
1987 99:'SOo 7600000 6606:21)1) 0
1988 993800 7600000 6606::0r) :27~o~~
1989 99:'800 7600noo 661J6~Oo ~7~t):2~
1990 993800 7600000 6606:~0() ~7:\C)~:2
1991 99380() 760()OOO 66( )6~( H) ~7~o~~
199~ 9<"l:'800 7600000 6606~n() :-~7:2():~:
199:' 99:'800 7600000 6606~oo ::7::i)~~
1994 99:'800 7600000 6606'200 :::?~0:2~
19c15 993800 7600000 66()6~00 ::7~()~~
1996 99:'801) 7600000 6606:201) :27:2():2:2
1997 99:'800 7600000 6606~()0 ::7~()~~
1998 99:'800 7600000 6606::':0(1 ::7~u~~
1999 99:>8uO 760uOOO 66\ )6~()() ~7::()~~
~OOO 993800 7600000 6606'200 :27~():~~
TOTAL
BOND SUPPORTABLE BY TAX INCREMENl IN THE 5TH YEAR:
(INCLUDES LAND SALE VALUE)
BOND SUPPORTABLE BY AVERAGE TAX INCREMENT :
:'5-:::.6~Cj' 1
~4-:'6-::::9U
**********************************~**************************~*
~60::883
lJOl\IlJ l-'AYMI::Nl SCHEDULE U1/"lm\ I l n.D 130I\lU:
:20~=J"::: 1 68)
,YEAI~
F'AYMENTS
=:===================~=:~=~:===~~=~~=~=-====:========~==:==~~=:_=
BnL_PINCr:
1 01 AL
F'RJN
I1'~ lTF'~'~S r I {4 X lI'~CF< (HllE/,'
('J5(_} j 7Lj
19::36 6 :'A) 1 7'" 4_":BI.J.7l ::':1171)<1
,d
1 ("l87 1744.::.4 0 liLJLJ~.4
1~m8 ~,.;;6K~9 9'2-;9'1 1 7 4j1-~.1~
1 <J8(i '2h6B:~9 t o 0::"4 f3 16,S581
1990 ~66B~9 10876<i 1 ~5::3()60
1 <i91 ~66l3'2r;..) 1 1 81:) 1 4 H8El14
199'2 :; ~J [1 f3 :.:: C) 1 ~~8() 46 1 :':..3~l:J :.
199-:::, ::':66l:l'29 1389-:::,1) 1'27!::lSI<jl
19~14 '2668'29 150T',~1 1160'7u
1 (""I po::- ~668~<? 1 6-:'551 1 ()-:,:277
T7d
19'16 :668~9 1 T745-'::. E{e) :,75
1 <"l<77 2668:''':;'' 192::'/-~' ;' 7 LJ '':':(.1'::':
199::3 :'668~9 ~089(> :' ~:i79'26
1 <79'-7 ::':66Fl'~"i :":6[)~J'7 41)17'-'
::':1)( H) ~6b8'.29 ::4~5cl-:~ > 191) (~
REVENUES
:~7 "'::l):~"::
~-/::f)~:"
:;7 :~()::~
:2-i :1): :
~ l:~1 ):..:~
~:7:'O::":::":
~~ 7~0=~~
:~-l~():\~
:~~7~():::2
:7=ri)~::
, '1 1 ~.., (-l"--' ,-\
,,_ I .._ _ ........._
:-~ 7 ::i):::i
4 ~7T:'fr:. ~49()6-~.9 J 8(\~~7 q 4 -~~:i-':;6 ;~~n
~-7 :~J)-:l='
U
I)
1iLJ4=,if
(3'::'1) 61 n
PROJECT TIMING ASSUMPTIONS
..........11....1.1......1...1............**...*1***1.1..*11**11.1*1*1*.1***....1
TASKS TIME
~--------------------------------------------------------------------------------------
I.SIGN DEVELOPMENT CONTRACT
:JULY 85
2.SELL BONDS
:JULY 85
3.ACQUIRE PROPERTY
RELOCATE TENANTS
CLEAR LAND
.BEGIN
ICOMPLETE
:JULY 85
DEC 85
4.SELL LAND TO DEVELOPER
:JAN 86
5.PROJECT CONSTRUCTION
IBEGIN
tCOMPLETE
:JAN 86
6.FIRST TAX INCREMENT COLLECTED
DEC 86
: 1988
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
t)
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5j94
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S194
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5194
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67518