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A 99 year lease for the Hayden Flour Mill for $833 a month or $10,000 a year. That 99 year lease effectively sells the building and land for a little less then $1 million dollars over the 100 years of the lease.

And if you look at the time value of an annuity, which this is, it sells the building for a hell of a lot less then $1 million dollars.

I used the financial calculator at this website to calculate the present value of the stream of rental payment from the $10,000 a year the members of the Tempe City Council sold us out for with interest rates from 1% to 8%. I used the method that continuous compounds the interest.

No matter what interest rate we use the city of Tempe will get almost $1 million in cash or exactly $990,000 from the deal.

But these are the present value figures of those payments, or how much cash the city of Tempe would get if they rented the land for one cash payment today. And the numbers are correct, because a lower interest rate will result in a higher present value of the cash flow.

The taxpayers are clearly getting screwed because we charging the folks at Baum Development between $130,000 and $631,000 to use the land for almost 100 years.

I bet the members of the Tempe City Council got some rather large bribes for voting on that deal which certainly screws the taxpayers of the city of Tempe.

Did I say "bribes"?? I'm sorry, I meant to say "campaign contributions", of course every body except people like the crooks on the Tempe City Council admit they are the same.

These are the crooks on the Tempe City Council who just voted to sell us all out:

Mark Mitchell, Mayor
Corey Woods, Vice Mayor
Robin Arredondo-Savage
Kolby Granville
Lauren Kuby
Joel Navarro
David Schapira

Source

Tempe OKs development deal for Hayden mill

Chris Coppola, The Republic | azcentral.com 10 a.m. MST May 31, 2016

For the better part of a century, the Hayden Flour Mill in downtown Tempe has stood as perhaps the most recognizable marker of the city's early history.

Built in 1918 and expanded in 1951 with towering silos adjacent to the building, the mill served as a "welcome to Tempe'' sign of sorts, greeting motorists crossing the Mill Avenue bridge on the Salt River, a striking piece of an otherwise humble skyline.

The mill's place in the downtown pecking order dropped as a new urban skyline emerged in downtown Tempe.

But city officials are hoping that will change.

The Tempe City Council last week without any debate approved a 99-year lease for the property with Chicago-based Baum Development on a 7-0 vote. Valley historical buildings

The agreement calls for Baum to redevelop the city-owned site with a hotel, retail buildings and an entertainment venue that incorporate the mill building and silos. The deal includes protections to guarantee the historical character of the structures not only are preserved, but are highlighted in the project.

"The Hayden Flour Mill is one of Tempe's most iconic structures. It's really the intention not only of me, but the entire council, to protect it,'' said Tempe Mayor Mark Mitchell. "We want to make sure we take care of this asset that we have.''

Baum will lease the property from the city for $10,000 a year and, in return, the city will receive a percentage of revenue generated at the property. Baum can take advantage of a state law that allows for avoiding payment of city property taxes for an initial period as an incentive to start the project.

Under that law, developers instead pay a separate tax at a rate set by the state based on the type of project.

The mill building and silos are not designated on the Tempe Historic Property Register or the National Historic Register of historical buildings, but under terms of the agreement Baum will have to make an effort — at its own expense — to have the property designated on both.

The mill site is adjacent to Hayden Butte, referred to as "A'' Mountain, which is a designated mountain preserve.

The mill building is the oldest cast-in-place, reinforced-concrete building in Tempe, and it was designed with then-new fireproofing techniques, according to the city. It was built in 1918 to replace an adobe mill constructed in 1895 that burned in 1917.

That adobe building replaced the original structure built by Charles Trumbull Hayden when he started the flour mill in 1874. The silos were added in 1951.

The mill functioned until 1998, when Bay State Milling ceased operations. The city acquired the property after a previous developer's plan for the site failed to materialize. The mill building caught fire in 2002 but remained standing.

Karyn Gitlis, chairwoman of the Tempe Historic Preservation Foundation, said listing the mill and silos on the historic registers is long overdue.

"The important thing is preservation of the butte and the silos and the mill,'' she said. "It's going to be a long process. But we have a conceptual agreement to do that.''

Gilis said she expects the foundation will push to ensure the mill building and silos are on the city's historic register.

"So far, the concept is pleasing, but the devil is always in the details. We'll see how it shakes out," she said.

Historic buildings in Tempe you need to see Job creation

Baum is expected to redevelop the site in three phases, according to the agreement:

The first phase calls for construction of 8,500 square feet of restaurant, event or retail space and 20,000 square feet of office space, along with parking.

The second phase will include infrastructure to support a multipurpose venue, including landscaping and utilities. Mitchell said the city wants some type of an entertainment venue at the site, which could be an amphitheater, but those details are not finalized.

The final phase would bring a boutique hotel of at least 100 rooms. The hotel would be built with the silos as part of the structure.

The agreement calls for the developer to keep the silos and mill building in their present locations. No changes to the appearance of the mill or silos can happen without city review, and if the plans don't materialize, the silos and mill must stay in their present condition.

The developer must return to the city by March 2017 with a plan. The first building permit is expected in early 2018, with the first phase ready by early 2019, the agreement states. The council still must review the details of the project itself.

"The agreement is to protect our history and also make sure that we have new jobs and new revenue for our community,'' he said. "The location is too important for us not to get something in there.''

Baum officials did not return calls seeking comment about the development agreement, which passed without any discussion by the council or opposition from the public. Hayden Flour Mill history

1870: Charles Trumbull Hayden forms the Hayden Milling and Farming Ditch Co., which capitalizes on the development of nearby irrigation canals. Hayden also operated a ferry service across the Salt River, which flowed freely at that time.

1874: Hayden completes the original flour mill near the south bank of the Salt River.

1895: Fire destroys the adobe mill. A new adobe mill is constructed.

1917: Another fire destroys the second mill.

1918: A concrete mill is constructed using then-new fireproofing techniques developed after the 1906 San Francisco earthquake and fire.

1951: Seven 117-foot-tall storage silos are built adjacent to the Hayden Flour Mill, along with a new grain elevator. The silos are the tallest structures in Tempe.

1966: Additions are made to the mill building.

1981: Hayden C. Hayden, grandson of Charles Trumbull Hayden, sells the flour mill to Bay State Milling Co., of Quincy, Massachusetts. The sale ends the Hayden family involvement in the business after three generations.

1998: Bay State ceases operation at the mill. The mill has remained closed since.

2000: Historic preservation and cultural officials determine land at and around the mill site has archaeological significance dating to the Hohokam people. As a result, Hayden Butte is designated a historic preserve.