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III. COST OF THE AGREEMENT TO THE AGENCY <br />This section presents the total cost of the DDA to the Agency, as well as the "net cost" of the <br />project after consideration of the project revenues. The net cost can be either an actual cost, when <br />expenditures exceed receipts, or a net gain, when revenues created by implementation of the <br />Agreement exceed expenditures. <br />A. Estimated Cost to the Agency <br />For this agreement, the net costs for the Agency are estimated to be: <br />(Estimated) <br />Site Assemblage (Purchased Land in late 1980's) $3,200,000 <br />Environmental Review 3,000 <br />Legal Fees 15,000 <br />Total $3,218,000 <br />B. Revenues to the Agency <br />Per the terms of the Agreement, the Agency will sell the Site to the Developer for a cash <br />payment of $2,265,120. <br />Also, as shown from Table 1 (following page 11), the present value of the property tax increment <br />for non -housing related programs from the Minimum Project is estimated at $2,260,000 over 30 <br />years. Therefore, the total revenue stream to the Agency is estimated to be $4,525,120. <br />The total revenues to the Agency from the Minimum Project are summarized as follows: <br />Present Value of Land Payments to Agency <br />Present Value of Property Tax Increment (80% Monies) <br />Total Revenues <br />19096.001\002-001.doc <br />$2,265,120 <br />2,260,000 <br />$4,525,120 <br />Keyser Marston Associates, Inc. <br />Page 7 <br />