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-2- Ponding $30,000 (This pond provides storage area for properties beyond just this site, part of our Comprehensive stormwater manage- ment plan - estimate provided by Barr Engineering, Architectural Alliance and City Staff) Legal $10,000 (Estimate provided by OIConnor & Hannon - assumed to be more than adequate) Bond Issurance $ 4,000 (Estimated cost to sell general obligation bonds publicly) Administrative Reimbursement $30,000 (This would be collected at the rate of $250 per month for 10 years to pay for staff costs. This is maximum percentage allowed by law) Land Sale I Phase I (12,500 square feet) is constructed at a minimum building improvement value of $600,000 the land sale price would be $75,000. If Phase I and II are built immediately, at the minimum building improvement of $1,000,000 the land sale price would be $45,000. Our negotiations were trying to provide an incentive to build a large building at greater value and therefore greater tax base. Our negotiated agreement says that the land sale price would be amortized over 20 years at 11% with a mandatory (balloon) payment at 10 years. Regardless of the land sale price the City expenses would remain the same. Because of the need to capitalize interest as a result of not receiving tax increments for 2 years the total amount necessary to be bonded for is estimated to be $150,000. According to the tax increment cash flows the project would payoff in 8 tax increment years or 10 years total if just Phase I at $600,000 value is constructed. If Phase I and II are built initially the cash flows indicates that the project would payoff in 6 tax increment years or 8 years total. Our figures, as always are based on a constant mill rate, minimal inflation and no further construction on the site as in Phase III or an additional bUilding on the western side of the property.