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ARDEN HILLS CITY COUNCIL — May 9, 2011 7 Councilmember Holmes stated she would not support this amendment. This project is an important initiative for the City and she would like to see the City Council encourage developers to come forward and continue to support those developers. Affordable housing is important to the residents of Arden Hills and if it takes several grant cycles for SCI to achieve their funding goal then the City should support this. SCI is currently applying for the second time for a full funding cycle. Mayor Grant stated the amendment was not trying to limit the number of times that SCI can come to the City and ask for a renewed letter of support but rather to let SCI know that as this project experiences delays due to funding gaps the City's financial situation may change and the City may be unable to renew the support in the future. The good faith commitment is not indefinite and is dependent on the financial situation of the City. At this time the City does support their project and their request for up to $225,000 in TIF Financing from the City. Councilmember Holmes stated SCI has come to the City for a renewed letter for each application they have submitted so the proposed amendment does not need to be made. Putting this type of limitation in the letter of support may affect their ability to receive the tax credits. The City should continue to be supportive of this project Councilmember Holden clarified that the City should make it clear that there could be an end to the support they have given at this time. SCI should not expect this support to be indefinite. She stated the City should not be obligated to this TIF financing if there is no set time for when it will occur. City Attorney Filla stated the City could make it clear to the developer that the commitment is not forever by making a separate motion or additional correspondence that is not included with the letter of support. Putting an end date in the letter of support could hinder their chances of getting additional funding. Mayor Grant stated he would like the record to reflect the City's TIF commitment is dependent on the City's financial situation and is not for an indefinite time. Mr. Thelen stated this has been the longest it has taken SCI to obtain the needed housing tax credits for a project. SCI also understands that they need to request a new letter of support for each application they submit. A new letter of support is not a requirement for the application but SCI feels it is important to do this for the City. MHFA does have some statutory rules about end dates for support and if there are short -term dates then the project may not be considered. He would request the City consider two motions and not include an end date in the letter of support. He clarified that SCI is aware the City's financial situation can change and they may not receive future approval for TIF support. Councilmember Tamble stated if SCI has to request a new letter of support each time they apply then having an end date in the letter of support would not be needed