Will the Agency have adequate funds to purchase the Rispin?
If one assumes the Agency would pay the original purchase price to the City of $1,350,000 and an interest rate of 5%, then the annual payment would be approximately $67,500. The Agency does not now have the cash to purchase the property, however, the Agency is projecting a fund balance of $243,700 for fiscal year 2003-04 and $272,800 for the following year. It is expected that this amount will continue to increase over the years, and that the improvement to the Rispin Property will contribute to that increase.
