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I I I -2- Assuming the development district could be amended to include the 100+ acres of Long Lake Park the ultimate tax increment district established for the development/redevelopment of the Bury/Miller/ Beisswenger property would have to include the park property. There is a potential significant problem, in that the legality of such a district is highly questionable. In my opinion, and our bond counsels opinion, the total development of Long Lake Park from use of tax increments from the much smaller actual development properties is probably not within the scope of the legislation. While the tax increment laws provide for good flexibility and use of imagination this would seem to be questionable. There is no doubt that the development of the industrial properties will have an impact on the park - meaning use by employees. As a result I think, and this was confirmed by bond counsel, that a certain amount of costs could potentially be absorbed by T.I.F. However, the amount should have some reasonable relationship to the size and cost of development of the park. DEVELOPMENT COSTS Your memorandum indicates an assumed Long Lake Park Development budget of $1.25 million. To fund this amount the City would have to bond for about $1.75 to $2.0 million as a result of capitalizing interest, legal, fiscal and administrative costs. This would all, of course, be in addition to whatever costs there are for the actual development projects (i.e. the public activities such as acquisitions, relocations, soil correction, etc.). My estimate is that the amount estimated for park development alone would require $12-15 million of new development. TIMING The timing of projects is also very important. We (the City and property owners, of the development district) are trying to work with the Planning Commission in regard to appropriate land uses in the development district. We are looking at the possibility of relocating the asphalt plant. We are discussing various ideas as to marketing and developing the property. We are hopeful this can be done in the near future. However, the general economy does and will have an important part in our plans. If quality development can be attracted soon we will proceed. If development is difficult, and the economy is certainly down right now, development in this area will be more difficult. Bottom line is that I can not begin to provide a firm time table as to when and how much development will occur. Development translates to tax base and tax increments in this district. This is a brief analysis of the potential use of T.I.F. for Long Lake Park. 11m sure 1111 be able to answer further questions.