Revenue from existing facilities

Payment year Property value

2014 $ 338,736,400
2015 $ 349,426,651
2016 $ 359,909,451
2017 $ 370,706,734
2018 $ 381,827,936
2019 $ 393,282,774
2020 $ 405,081,257
2021 $ 417,233,695
2022 $ 429,750,706
2023 $ 442,643,227
2024 $ 455,922,524
2025 $ 469,600,200
2026 $ 483,688,206
2027 $ 498,198,852

Ad valorem
$ 2,163,678
$ 2,205,161
$ 2,271,317
$ 2,339,456
$ 2,409,640
$ 2,481,929
$ 2,556,387
$ 2,633,078
$ 2,712,071
$ 2,793,433
$ 2,877,236
$ 2,963,553
$ 3,052,460
$ 3,144,033
$ 32,234,592
Difference:

Property value and payments after 2015 assume 3% growth.

2015 IDA payment floor
Calculated IDA fee
%of AV

$
2,205,161
$
2,205,161
$
2,205,161
$
2,205,161
$
2,205,161
$
2,205,161
$
2,205,161
$
2,205,162
$
2,205,163
$
2,205,164
$
2,205,165
$
2,205,166
$
17,641,294
IDA fee, existing facilities-->
$
5,495,504

$
$
$
$
$
$
$
$
$
$
$
$
$
$

Tax rate
100%
100%
100%
95%
90%
85%
80%
75%
74.30%
74.30%
74.30%
74.30%
74.30%
74.30%

2,271,317
2,222,483
2,168,676
2,109,640
2,045,109
1,974,809
2,015,069
2,075,521
2,137,786
2,201,920
2,267,977
2,336,017
9,097,794
26,739,088

Payments will never fall below 2016 ad valorem payment (thus, the payments in green are the relevant numbers).

0.0063108
0.0063108
0.0063108
0.0063108
0.0063108
0.0063108
0.0063108
0.0063108
0.0063108
0.0063108
0.0063108
0.0063108
0.0063108

Revenue from new Valero facilities

Property value
Ad valorem
$
$
$
$
$
$
$
400,000,000 $ 2,524,320
$
412,000,000 $ 2,600,050
$
424,360,000 $ 2,678,051
$
437,090,800 $ 2,758,393
$
450,203,524 $ 2,841,144
$
463,709,630 $ 2,926,379
$
477,620,919 $ 3,014,170
$
491,949,546 $ 3,104,595
$ 22,447,102
IDA fee, new facilities--> $ 10,917,748
Difference:
$ 11,529,354

IDA fee
% of AV
$
$
$
$
$
$
$ 1,009,728 40.00%
$ 1,040,020 40.00%
$ 1,071,220 40.00%
$ 1,241,277 45.00%
$ 1,278,515 45.00%
$ 1,463,189 50.00%
$ 1,507,085 50.00%
$ 2,306,714 74.30%
$ 10,917,748

Construction scheduled for 2017 to run 24 months; assumes completion as of Jan.1, 2019.

Financial impact
Total projected ad valorem (property) taxes ----->
$
54,681,694
Total IDA fee for all facilities ---->
$
37,656,836
Total difference, assuming the new facility would have been built without the deal*
$
17,024,858
Total difference, assuming the new facility would only be built with the deal**
$
5,422,244
*This number shows the difference, combining both old and new facilities, between city property taxes and the industrial fees proposed under the agreement.
**This number shows the difference between the industrial fees the new facilities would generate and the discount the city would give Valero on its existing facilities.
Ad valorem numbers are italicized because if the deal is approved Valero would pay the negotiated fees, not property taxes.