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TO: Redevelopment Commissioners <br />FROM: Beth Leonard Inks &,t/ <br />RE: Blackthorn Golf Course — Purchase of Capital Equipment in 2011 <br />DATE: April 20, 2011 <br />Staff requests permission to use approximately $75,000 of Airport TIF monies to finance <br />the purchase of 3 pieces of maintenance equipment for the golf course. The Airport TIF <br />monies will be repaid by Blackthorn Golf Course at 0% interest over 8 years— making 6 <br />seasonal payments totaling approximately $9,400 per year to efficiently manage cash <br />flow. The pieces are: 1 Triplex Green Mower; 1 Walking Aerator for Greens; and 1 <br />Green Tee Bank Mower. These pieces will replace current equipment pieces which are <br />each over 15 years old. The bids for this equipment are currently under review. If the <br />Commission does not approve financing through TIF, we will need to seek financing <br />through the vendor, at a higher cost. <br />Attached is a pro forma for Blackthorn operations and capital thru 2016 which shows we <br />expect sufficient cash flow to support these payments. In addition, we have added <br />additional anticipated capital needs to the forecast. If net operating income does not meet <br />projections, these additional capital purchases will need to be adjusted. In any case, we <br />would expect the $9,400 /year payment requested here would not cause an undue burden <br />on Blackthorn operations. <br />