12-13-10-R - Laserfiche WebLink

Home Browse Search

ARDEN HILLS CITY COUNCIL—December 13, 2010 10 6.B. Public Hearing Proposed TIF District—Presbyterian Homes Redevelopment(continued) Councilmember Holmes asked if the interest amount of$932,922 was based on the interest being at 6.2%. Ms. Kvilvang stated with regards to the TIF plan and the TIF budget this is a separate interest calculation. The 6.25% rate is used when negotiating with the developer on the development agreement. For purposes of the budget, a 3% rate is used. There is a cap on what can be used for hard construction costs so a lower interest rate or value rate is used. This is to utilize the budget and maximize the City's flexibility. What dictates what the City will actually end up paying or providing is in the development agreement. Also, in order to provide a maximum budget, a 3% inflation rate is provided for. A higher percentage over time is used and this allows flexibility so that the City will not need to continue to make amendments to the agreement. She clarified that on the TIF plan they have inflated the value of the development over time. Councilmember Holmes asked what this interest is based on. Ms. Kvilvang stated this is interest payments the City is making on any debt that the City may take on. For the TIF plan purposes the interest is calculated at 3%. The lower amount is used here because there are constraints within the TIF laws for capital expenditures. The interest number can change but there would not need to be amendments or changes to the budget being proposed. This will provide flexibility for the City so that a public hearing process will not have to be followed for an amendment to the budget in the future. Mayor Harpstead opened the public hearing at 8:15 p.m. Mayor Harpstead closed the public hearing at 8:16 p.m. Councilmember Holmes stated she is struggling to understand the budget. She asked if this represented all the budgeted costs for Presbyterian Homes to build this project. Ms. Kvilvang stated the overall development project costs are estimated at about $49,000,000. - The budget included in the TIF Plan is the maximum budget for the tax increment that would be generated over the term of the district. The TIF Plan budget is what is available to provide some assistance for the higher costs of redevelopment. She stated the amount of increment that is generated over the term would be about $3,700,000. Mayor Harpstead stated the Council had agreed to continue this item to the December 20, 2010 meeting. C. Resolution 2010-070: Ordering Abatement of Public Nuisance at 1926 Stowe Avenue Parks and Recreation Manager Olson stated the City received a complaint regarding a potentially diseased tree at 1926 Stowe Avenue. The City Forester inspected the property and determined that this tree had been previously marked in 2008 for removal for Oak Wilt Disease. Staff determined that the owner did not respond to City notices during that time to remove this tree. The tree is now completely dead and poses eminent danger to life or property to adjoining properties. This type of violation requires the City to use the General Abatement Procedure