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ARDEN HILLS CITY COUNCIL — May 9, 2011 6 Councilmember Holden clarified SCI will need to request a new letter of support for each housing tax credit application they do and this letter of support does not obligate the City to provide TIF financing. City Planner Beekman stated SCI has come to the City for a new letter of support for each application they have done. This letter does not guarantee SCI will qualify for TIF or for the full $225,000 specified in the letter of support. SCI will need to apply for TIF Financing and meet all the criteria including the But -For Analysis before TIF Financing can be provided. The letter of support is not an obligation but it is a good faith commitment that if the applicant applies for and qualifies for TIF then the City will grant it. City Attorney Jerry Filla stated the City has approved several things in regards to this project and the applicants believe if they continue to follow the process and they qualify for TIF the City will grant them TIF in an amount up to $225,000. They may not be eligible for the full amount or they may qualify for more but the City has capped the amount they would approve at $225,000. The applicants are aware that they should come to the City for a new letter of support for each housing tax credit application they submit. Mayor Grant stated the City may not be able to continue to support this amount of TIF if the process goes on indefinitely. There may be other projects in the City that request TIF in the future and the City may need to act on these requests. He clarified the City's financial situation may change in the future where the City would not be able to continue their support for TIF indefinitely. City Attorney Filla stated the City has approved the project and SCI may decide to go forward with the project without the housing tax credit funding. Mr. Thelen stated SCI has been looking into other funding sources such as the Ramsey County HOME funds that have been tentatively approved. SCI understands that they should come to the City for a new letter of support for each application they submit and have been following this process with each submission. Councilmember Werner asked if the overall project costs have been reduced or increased since the project was first brought to the City Council in 2009. Mr. Thelen stated since 2009 the construction costs have decreased and they are also finding that funding sources are less restrictive than they were in the past. MOTION: Councilmember Holden moved and Councilmember Holmes seconded a motion to Approve the Renewal of a Letter of Support for Tax Credit Financing Including a Commitment for Up To $225,000 in TIF Assistance for Sand Companies, Inc. MOTION: Councilmember Holden moved and Mayor Grant seconded a motion to Amend the Letter of Support to include a sentence in paragraph 4 that specifies the Letter of Support will expire at the end of the 2011 grant award cycle.