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ARDEN HILLS CITY COUNCIL WORK SESSION—DECEMBER 13, 2010 8 2.A Presbyterian Homes Tax Increment Financing Contract(continued) Ms. Kvilvang indicated she was not aware of this presumption but stated this was the amount paid back in 2008. Mayor Harpstead suggested one-half of 1% be paid for the first $10 million, which would be $50,000. Then .2% could be paid on the amount over the first $10 million, which would be $56,000. This would be a total of$106,000 and a close compromise to the $100,000. Councilmember Holmes felt this was not a proper solution. She did not understand why the City had a policy on conduit debt, when it could not be followed. Councilmember Holden stated this would allow the City to take some money up front while paying for it in the long term. Councilmember McClung stated that he is struggling with the .2%. City Administrator Klaers did not know the right amount, but from a Staff point of view, he was comfortable with a lower number as the project would greatly benefit the City in the long run. A reasonable number would be close to the requested amount from Presbyterian Homes. Councilmember Holden questioned what the numbers would be if the project were run through the City of Blaine's formula. Ms. Hutmacher indicated the lump sum would be $170,000. Councilmember Grant asked if Presbyterian Homes had other establishments in the metro area. John Mehrkens reviewed the location of other buildings stating projects had recently been completed in Northland Park, Roseville and Burnsville. Mayor Harpstead questioned how the Council would like to proceed or if there was other guidance for staff at this time. Councilmember Holden felt an extension was unacceptable. City Administrator Klaers clarified that what made this project unusual was the large amount of financing requested. Mayor Harpstead felt the City of Blaine's formula was quite reasonable. Councilmember Holden was comfortable with a$200,000 fee. Councilmember Holmes indicated she would not go below $250,000 on the conduit financing administrative fee. She felt that Presbyterian Homes was asking too much from the City.