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Home My WebLink AboutCounty Ltr on Taxes SEW RY: 11-13-35 8:39 ; PROP REC & TAX; 6123379310:# 1/ 3 II. . ' '~"". COUNTY OF ANOKA DIVISION OF PROPERTY RECORDS AND TAXATION RdlW1l'd M. 1",sJu., Div;,WIn M.""gor GOVERNMENT CENTER. 2100.aRD AVENUE. ANOKA, MN 55303 November 9, 1995 Mr. Steve Bubul Kennedy and Graves Pillsbury Center Minneapolis, MN 337-9228 FAX 337-9310 / Dcar Mr. Buhul: This is the information you requested concerning the' Zaidan Property for taxes payable 1995. IF the property had a murket value of $1,630,800 for 1995 taxes, Tax Incremcnt District A3 would receive an estimate settlement of $81 ,267.60. In thc June 1995 Tax Settlement, then'W:DiiiffiilfA3 actually was settled $121, 319.81, which represents first half only settlement. The second half payment has not been received as oftoday's date and penalty is now accruing. Please give me call if I can be of assistance. Sincerely, -4 ~iCal~~ Michael A. Kinde Property Tax Accounting 323-5440 Affirmlltlve Action I EqUllI Opportunity Employer KENNEDY & GRAVEN CHARTERED AUorne)'1 al Law 470 Pillsbury Cenler, Minneapolis, Minnesota 55402 (612) 337.9300 JAMES J. THOMSON, JR. LARRY M. WERTHEIM BoNNIE L. WILKINS JOE Y. YANG ROBERT A. ALSOP RONALD H. BATTY STEPIIEN J. 8UBUL JOlIN B. DEAN DANIEL J. GREENSWEIG DAVID J. KENNEDY CHARLES L. LEFEVERE JOlIN M. LEFEVRE, JR. ROBERT J. LINDALL ROBERT C. LoNG JAMES M. STROMMEN CORRINE HEINE THOMSON Facsimile (612) 337.9310 DA VlD L. GRA YEN (1929-1991) WRITER'S DIRECT DIAL OF COUNSEL BRUCEM. BATTERSON ROBERT C. CARLSON ROBERT L. DA VJDSON WEI,LlNGTON H. LAW CURTIS A. PEARSON T.JAVSALMEN 337-9228 VIA RAPIFAX AND MAIL ",' , n' November 22, 1995 <,,< \"';:\' , '. ~- -'" Tim Walsh Leonard, O'Brien, Wilford, 800 Norwest Center 55 East Fifth Street St. Paul, MN 55101 Spencer & Gale \) '."' ,~~\\ '\ ...... , " 1"':'" . r~'~ \,\'.- .c("\ ~." fJ:. RE: Columbia Heights Office Center Dear Tim: /' I am writing to clarify the amount due under the Promissory Note given by Zaidan Holdings, Inc. to the Housing' and Redevelopment Authority in and for the City of Columbia Heights (HRA), dated March 10, 1995. We are responding to the letter and payment sent by Gordon Awsumb to the HRA dated October 16, 1995. Under paragraph (c) of the Note, the total payment due on December 1, 1995 is $100,000 ($79,958 principal plus $20,042 interest). If the Note is prepaid in full on December 1, the total amount due is $250,522 (the sum of the principal payments shown in paragraph (c) of the Note) plus interest at 8% from the date of the Note. However, under paragraph (f) of the Note, Zaidan in entitled to a credit against any amounts owing under paragraph (c) in the amount of "the total tax increment attributable to the Property that is payable to the HRA in calendar year 1995 and arising from an estimated market value of $4,800,000, less the tax increment that would have been attributable to the Property payable in calendar year 1995 if the assessor's market value had been $1,630,800 (the 'Credit Amount')." Only the portion of the Credit Amount actually received by the HRA as of December 1, 1995 may be applied as a credit. The Anoka County Division of Property Tax Records and Taxation reports that ~ increment paid to the HRA for the first half of 1995 was $121,319.81, based on a market value of $4,800,000. (See enclosed letter dated November 9, 1995.) The tax increment for all of 1995, when received, will be $242,639.62. The County also calculates that if the market value had been $1,630,800 for 1995, the tax increment would be $40,633.80 for the first half and $81,267,60 for the full year, Therefore, the "Credit Amount" under the Note is $80,686.01 for the first half and $161,372.02 for the full year. BJB97138 CL160-70 Tim Walsh November 22, 1995 Page 2 As of today, the second half taxes have not been paid, so the Credit Amount actually received by the HRA is $80,686.01. If Zaidan pays the delinquent 1995 taxes promptly, the HRA will not receive the tax increment from such taxes until the end of January, 1996 (as opposed to mid-December, 1995, had taxes been paid by October 15). The HRA is willing to apply the second-half Credit Amount toward any December 1, 1995 payment if: (1) the second-half 1995 taxes are paid in full together with penalties and interest by November 30, 1995; and (2) Zaidan pays an additional amount representing 30 days' interest on the second-half Credit Amount at 8 % ($534.36), to account for the delay in receipt of tax increment on the second-half taxes. Zaidan paid $26,822 to the HRA on October 16, 1995, as partial prepayment of the Note, and expressed its intention to prepay the Note in full on or before December 1. To summarize the above discussion, our calculation of the pay-off amount on December 1, 1995 is' as follows: Principal Balance Due: Plus interest from 3/10/95 Less 10/16/95 payment Less full Credit Amount Plus Credit Amount interest $250,522.00 14,550.87 ( 26,822.00) (161,372.02) 534.36 $ 77,413.21 Total Payable: As mentioned above, this calculation assumes that delinquent taxes, penalties and interest are paid to Anoka County before December 1. Upon payment of the referenced amount to the HRA on December 1, the Note will be deemed paid in full. If Zaidan chooses not to prepay the Note in full, the December 1 payment of $100,000 will be deemed satisfied without further payment, based on the $26,822 payment on October 16 and the $80,686.01 partial Credit Amount actually received by the HRA as of December 1. If Zaidan does not pay delinquent second half taxes by November 30, 1995, the HRA will be entitled to provide notice of default under the Note and Mortgage. If the default is not cured within 30 days thereafter, the Note will be payable in accordance with paragraph (e) of the Note. In that event, no Credit Amount will apply, as described in paragraph (f) of the Note. Please contact me as soon as possible to confirm Zaidan's intentions regarding the December 1 payment. vermJ?lO Stek{e~~:t\. B u'6'ul cc: Don Schneider Pat Hentges SJB97138 CL160-70