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1 Tax Revenue=Estimated Market Value x Tax Classification Rate x ritv Tax Rate 2 Tax Revenue=S6 600 000 x 2% x 65 = 85 838 3 wa to measure the return on the Business Park is to consider a theoretical analysis: If the Cit of Pe got Lakes 4 had not develo ed the Business Park#n 1996 buff was instead iven the o ortun# to acre tthe ark toda with 5 the current rate of develo ment at the inflation-ad'usted cost of 2.03 million3 would this be a wise investment? 6 iot if the ob`ective was to lower the overall tax burden° If the Cit financed the ro'ect at 4 and devoted eve 7 tinned to rise hv 30M 8 er ear it would take 29 ears for the ark to cover the cost of its creation. DurinO that time the ro art taxes 9 aid b the businesses in the ark wou#d cover onE debt re a went. The costs of snow lowin street 10 maintenance ol#ce and fire rotection and other services rovided'to the ark would have to be aid b the rest 11 of the tax base. 12 C?f course this wou#d be a better scenario than the ro'ect as it was actuall undertaken.1fhile the actual ro'ect 13 cost was handled u -front the tax revenue to Da i for it did not a ear until man ears later.A number of the lots 14 were iven awe busindsses were enticed with tax incentives and further ublic Im rovements enhanced the 15 s#stance with the prnipct from a strictl tax revenue 16 stand Dint the Business Park was a bad investment for the Cit . As the infrastructure in the ark a es and needs 17 increased maintenance It will be critical that that tax base of the exist! oark increase sufficient to cover this 18 ion wterm IiaEailit . 19 What this analysis does not factor in is the value of the 'obs created within the park. The business #nvento 20 conducted in 2003 indicates that there were a romi-itply 200 in within industrial ark rd ert .While the net 21 cost- er-'ob is an elusive fi ore the industrial ark should not be ex ended for the sake of crest#n °obs without a 22 ri orous financial com arison of the costs and like# outcomes of other°obs creation initiatives, 23 Downtown 24 In 2009,the city established a"Grow Zone"throughout the downtown commercial areas.In searching for a way to 25 reduce regulations and streamline the permitting process for businesses, an alternative set of standards were 26 developed for this area. Instead of the standard zoning approach,which prohibits any use not specifically allowed, 27 the Grow Zone standards instead allow nearly all uses and focus instead on the form new construction takes. 28 Where this form is compatible with the existing development pattern, not only does it add to the "destination 29 effect" of the downtown, but approvals can be made very quickly. Property owners seeking to make 30 improvements to a property within the Grow Zone may choose to either utilize the Grow Zone standards or stick 31 with the traditional approach. 32 Highway 371 Corridor 33 Outside of the downtown the Hl hwa 371 corridor has develo ed in an auto-oriented nattern, For the most arfi 34 this develo ment is not tied to munici al utilities and as such has develo ed in a somewhat random distribution. 35 he cdrrldor includes such vane as a church a contractor ards restaurants and store e units amon st other 36 lases. There are areas where develo meat is Blustered to ether and other areas where there are lar e a s There are lots owned b a tax-exe—rit reli 7ious institution and ro art still owned b the Cit of Pe not Lakes. Aceordin to the inflation calculator at www°waste com inf#anon 1.54 million in 1996 is inflation ad'usted to 2.08 million#n 2009. 111 Page