Presented by: Proposed Sports and Event Complex in Coeur d ...

existing development inflates. However, the analysis provides an estimate of the average annual
property tax valuation required to generate a 20-year NPV of $5.0 million. The following table
summarizes this analysis.
Valuation Increase Required to Create
$5.0 Million NPV over 20 Years
Targeted 20-Year Net Present Value (1)
As shown, a property value increase of approximately $72.5 million would be required to
generate annual tax revenues sufficient to provide a net present value of $5.0 million over 20
years. This level of property value increase would generate an estimated $581,000 in
incremental annual property tax collections, of which approximately $436,000 would be
available for facility funding, assuming 25 percent of incremental tax collections are allocated to
other projects. Each additional $5.0 million in NPV required to fund the project would require
an additional $72.5 million in incremental assessed value.
It should be noted that an increase of more than $72.5 million may be required to actually fund
each $5.0 million of facility development, as this analysis does not include potential coverage
ratios and other borrowing costs outside of the assumed 6.0 percent discount rate.
Ultimately, the amount of the project’s total cost that can be funded through TIF will depend on
the amount and type of additional development that occurs within the Riverstone district. A $25
to $35 million project would require substantially more development than the initial phase of TIF
funding, which covered $6.7 million in improvements.
Feasibility Analysis of a New Sports and Event Complex in Coeur d’Alene
Funding Analysis
Page 117
$5,000,000
Annual Revenue Stream Required $436,000
% of Total Revenue Captured 75%
Total Annual Tax Revenue Required $581,000
Tax Revenue per $1.0 Million Assessed Value $8,016
Necessary Valuation Increase $72,480,000
(1) NPV calculations assume constant property tax revenues over 20 years,
with a 6.0 percent discount rate.