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L <br /> Waive SAC and WAC/Planning Commission <br /> Lonesome Cottage is requesting the City of Pequot Lakes to waive the sewer and water access <br /> charges of$9,800. The company understands that the planning and zoning process will be <br /> required including a conditional use permit. <br /> Tax Increment Financing <br /> Lonesome Cottage is requesting a net present value of$102,600.00 in tax increment financing <br /> assistance. (Approximately$17,100 per year for 9 years)The method of tax increment financing <br /> is proposed to be on a "pay-as-you-go"basis. Lonesome Cottage is requesting tax increment <br /> financing to improve cash flow and return on investment over time. <br /> Terms and Conditions of Tax Increment Financing Request <br /> Based on preliminary projections, approximately$19,000 in tax increment would be generated <br /> annually. If the City chooses to proceed with this project,legal and financial consultants will <br /> prepare documents and conduct a full financial review to determine the appropriate terms and <br /> conditions of this project. <br /> Costs Incurred by City <br /> It is the City's policy to require applicants to escrow funds to cover all costs incurred by the City <br /> with processing a tax increment financing request. A deposit of$10,000 is required upon <br /> conceptual approval.If this deposit is inadequate additional funds will be escrowed. <br /> Administrative Expenses <br /> The City may capture up to 10% of the annual increment to cover administrative expenses <br /> incurred by the City associated with the tax increment financing district. Assuming$19,000 per <br /> year in increment, a maximum of$1,900 would be available annually for administrative <br /> expenses. <br /> Proposed Timeline <br /> The proposed timeline is as follows: <br /> 1.June 21, 2007 at 3:00 p.m.-Present project to the Pequot Lakes Business Park Committee and <br /> request a recommendation to the Pequot Lakes City Council regarding the sale of Lots 2-5 <br /> Block 2/Loan in the amount of$100,000/TIF/Waiver of SAC&WAC/First Right of Refusal <br /> 2.July 3, 2007 at 7:00 p.m. -Request conceptual approval from the Pequot Lakes City Council <br /> regarding the sale of Lots 2-5 Block 2/Loan in the amount of$100,000/TIF/Waiver of <br /> SAC&WAC/First Right of Refusal <br /> 3.July and August-Process TIF/Business Subsidy Requirements and hold Public Hearings <br /> 4.September 2007—Commence construction <br />