1998-10-23 City Portion of Taxes Generated by Outlet Mallemo
To: Duane Berning
Patti Staibe~ger'
Dam Lxmd
From: Linda Goeb
Date: 10/23/98
Re: City Portion of taxes generated by outlet mall
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I spoke to Greg Kramber today regarding the tax dollars the City could anticipate if
the outlet mall is constructed in Albertville. The commercial tax rate for taxes payable
in 1999 is 2.45% of the first $150,000 of market value. Market value in excess of
$150,000 is taxed at a rate of 3.5%. However, the commercial tax rate could change
in the next few years.
The 1999 total Wright County tax capacity rate is 1.30789. According to the
proposed budget revised on October 20, 1998, the City's tax capacity rate for 1999
taxes is .3914.
At earlier staff level meetings, JMJ Properties have stated they estimate the market
value of the proposed mall at $15,000,000. I calculated the taxes generated by the
City if the mall was on the 1999 tax rolls with three different market values.
Market Value Tax Capacity Total Taxes Paid City Portion of Taxes
$10,000,000
$12,500,000
$15,000,000
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$348,425 $455,701.57 X .3914 = $136,373.55
$435,925 $570,141.95 X .3914 = $170,621.05
$523,425 $684,582.32 X .3914 = $204,868.55