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Home My WebLink About5.i. Discussion of Business Park - Report from SpringstedCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION PORT AUTHORITY COMMISSION MEETING DATE: MARCH 2, 1993 AGENDA ITEM: DISCUSSION OF BUSINESS PARK AGENDA SECTION: OLD BUSINESS PREPARED BY: JOHN MILLER, DEVELOPMENT AGENDA 1T.EMECONOMIC 5 COORDINATOR ATTACHMENTS: SPRINGSTED FINANCIAL PROJECTION APPROVE BY The members of the commissions have been discussing the creation of a business park. Attached for your review is information from Springsted, Inc. Schedule A: Shows total principal and interest that would be paid to Roy Abbott on $392,000 (after a 20 percent downpayment) for 80 acres of land. Remember, the maximum period a municipality can use for a contract for deed purchase is five years. Don't count or add up all of the principal and interest payments. Schedule B: SEH used $1,115,000 as its rough estimate for Phase l infrastructure. This schedule shows payments assuming 18 months of capitalized interest. Schedule C: Shows 30 months of capitalized interest for infrastructure improvements. To make a long story short, the Port Authority would have an annual. principal and interest payment for infrastructure and land of about $200,000, after a short start-up period. Assuming the land sells for 50 cents per square foot with improvements, the Port Authority would have to sell about nine acres annually. I will have several options for development for you at the work session. RECOMMENDED ACTION: Information only. No action required. PORT AUTHORITY ACTION: The City of Rosemount Port Authority, Winnesota Prepared February 17, 1993 Land Acquisition Mote By SPRINGSTED Incorporated 10 Year Note Dated: 8- 1-1993 Mature: 2- 1 First Interest: B- 1-1994 Year of Year of SCHEDULE A Levy Mat. Principal Rates (1) (2) (3) (4) 1993 1995 17,000 7.00% 1994 1996 31, fl00 7.005 1995 1997 34,D00 7.005 1998 1998 36,000 7.0% 1997 1999 38,000 7.DD% 1998 2000 41,000 7.0015 1999 2001 44,000 7.00% 2000 2002 47,000 7.00% 2001 2003 5x,000 7.00% 2002 2004 54,000 7.40515 TOTALS: 392,000 184,170 576,170 Bond Mears: Total Annual Interest: Principal Interest 8 Interest (5) (6) 41,160 58,160 26,250 57,250 24,080 58,080 21,700 57,700 19,180 57,180 16,520 57,520 13,650 57,650 10,570 57,570 7,280 57,280 3,780 57,780 184,170 576,170 Bond Mears: 2,631.00 Annual Interest: 184,170 Avg. Maturity: 6.71 Plus Discount: 0 Avg. Annual Rate: 7.00D96 Net Interest: 184,170 T.I.C. Rate: 6.978% N.I.O. Rate: 7.000% Interest rates are estimates; changes may cause significant alterations of this schedule. The City of Rosemount Bort Authority, Minnesota G.U. Bonds for Industrial Park Development 10 Year Bonds - 18 Months Capitalized Interest Dated: 8. 1-1993 Mature: 2. 1 First Interest: 8- 1-1994 Year of Year of Lewy Mat. (1) (2) 1993 1995 1994 1996 1995 1997 1995 1998 1997 1999 1998 2000 1999 2001 2000 2002 2001 2003 2002 2004 2003 2005 TOTALS: Prepared Februarys 17, 1993 By sPnINGSTEA Incorporated SCHEDULE B 1,115,000 Bond Years: 8,217.50 Avg. Maturity: 7.97 Avg. Annual Rate: 4.930% T.I.C. Rate 5.{}76% 405,111 1,520,111 Annual Interest: 405,111 Plus Discount: 12,265 Net Interest: 417,576 N.I.C. Rate: 5.079% 78,819 1,441,2192 1,513,355 Interest rates are estimates; changes Inay cause significant alterations of this schedule. The actual underwriter's discount bid may also vary. Total capital- Not Principal Rates Interest &PInterest ized Interest Levy Required 105% of Total (3) (4) (5) (6) (7) (a) (9) 0 90,{}00 0.00% 3.80 78,819 52,546 78,819 1420546 78,819 0 a 95,000 100,000 3.90% 4.205 49,305 144,306 0 0 142,546 144,306 149,673 151,521 105,000 4.45% 45,601 41,401 145,601 146 401 0 0 145,601 152 881 ' 105,000 110,000 4,655 4.80% 36,728 ' 141,728 0 14£x,401 141,728 153,721 148,614 120,000 4.95% 31,845 26,565 141,845 146,565 0 0 141,845 148,937 125,000 130,000 5.10% 5.25% 20,625 145,625 0 146,565 1451,625 153,893 152,906 135,000 5.50% 14,250 7,425 144,250 142,425 0 0 144,250 151,463 142,425 148,646 1,115,000 Bond Years: 8,217.50 Avg. Maturity: 7.97 Avg. Annual Rate: 4.930% T.I.C. Rate 5.{}76% 405,111 1,520,111 Annual Interest: 405,111 Plus Discount: 12,265 Net Interest: 417,576 N.I.C. Rate: 5.079% 78,819 1,441,2192 1,513,355 Interest rates are estimates; changes Inay cause significant alterations of this schedule. The actual underwriter's discount bid may also vary. The City of Rosemount Port Authority, Minnesota Prepared February 17, 1993 G.O. Bonds for Industrial Park Development By SPRiNGSTEO Incorporated 10 Year Bands - 30 Months Capitalized Interest Dated: a- 1-1993 SCHEDULE C Mat ure : 2- 1 First Interest: 8- 1-1994 Total Capital- Net Year of Year of Principal i.zed Levy 105% Levy Mat. Principal Rates Interest & Interest Interest Required of Total (1) (2) (3) (4) (5) (6) (7) (8) (9) 1993 1995 0 0.00% 86,139 86,139 86,139 D 0 1994 1996 0 0.01% 57,426 570426 57,426 0 0 1995 1997 95,000 3.90% 57,426 152,426 0 152,426 160,047 1996 1998 100,000 4.20% 53,721 153,721 0 153,721 161,447 1997 1999 105,000 4.45% 49,521 154,521 0 154,521 162,247 1998 2000 105,000 4.65% 44,848 149,.848 0 149,848 157,340 1999 2001 110,000 4.80% 39,965 149,965 0 149,965 157,463 2000 2002 120,ODD 4.95% 34,685 154,685 0 1540685 162,419 2001 2003 125,000 5.10% 28,745 153,745 0 153,745 161,432 2002 2004 130,000 5.25% 22,370 152,370 0 152,370 159,989 2003 2005 135,000 5.50% 15,545 150,545 0 150,545 158,072 2004 2006 145,000 5.60% 8,120 153,120 0 153,120 160,776 TOTALS, 1,170,000 498,511 1,6618,511 143,565 1,524,946 1,601,192 Bond Years: 9,805.00 Annual Interest: 498,511 Avg. Maturity: 8.38 Plus Discount: 12,870 Avg. Annual Rate: 5.084% Net Interest: 511,381 T.I.C. Rate: 5.213% N.I.C. Rate: 5.216% Interest rates are estimates; changes may cause significant alterations of this schedule. The actual underwriter's discount bid may also vary.