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<br />It is also not anticipated that the Project will generate property taxes due to the <br />fact that the Developer is a nonprofit and the Project qualifies for exemption from <br />property taxes. Therefore, the Agency will not receive property tax increment <br />revenues from the Project. <br /> <br />As detailed below, cost recovery payments and revenues to be generated by this <br />transaction are anticipated to total $121.61 million in nominal dollars and $2.21 <br />million in present value terms. <br /> <br /> Total Nominal Cost Net Present <br /> Recovery/RevenueNalue Value <br /> (discounted <br /> at 6%) <br />Repayment of $727,000 $705,000 <br />Predevelopment Loan <br />Lease Payments $0 $0 <br />Repayment of Loan for $884,000 nominal <br />Renovation (maximum <br />amount) <br />Value of Property at $120,000,000 $1,500,000 <br />Expiration of Lease (75 <br />years) <br />Total Agency Cost $121,611,000 $2,205,000 <br />Recovery Payments and <br />Revenues <br /> <br />C. Net Cost to the Agency <br /> <br />The net cost to the Agency resulting from this transaction is the difference <br />between the Agency's costs and the Agency's cost recovery payments and <br />revenues. The net cost is approximately $6.15 million in present value terms. In <br />nominal dollars, the transaction is actually anticipated to generate a net positive <br />value stream to the Agency totaling $109.48 million. This large nominal value <br />reflects the projected future value of the land after the lease expires in Year 75. <br />