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ARDEN HILLS CITY COUNCIL WORK SESSION—OCTOBER 18, 2010 3 John Mehrkens, Presbyterian Homes, explained the changes required to address neighborhood concerns have negatively impacted the project from a financial standpoint; such as the centralization of receiving to one location, the adjustment in unit mix on the Shorewood side, and reducing the number of independent units and brownstones. City Planner Beekman stated the Planning Commission tabled this application to their November 3rd meeting to give staff time to review the revisions proposed by Presbyterian Homes. City Administrator Klaers stated that at their October 25'h meeting, the Council will be asked to set the public hearing on the TIF district for December 13, 2010. If the Council approves TIF, the City will directly benefit from the investment by Presbyterian Homes in sewer and street improvements and the donation of the triangle property. He further explained that FPAC unanimously recommended approval of TIF. Councilmember McClung asked if the building on the donated property will be removed by Presbyterian Homes. City Planner Beekman responded that Presbyterian Homes would remove all structures before deeding the property to the City. Councilmember Grant questioned how the donated property would impact TIF. Staci Kvilvang from Ehlers and Associates explained that the donated property would not add any value by including it in the TIF district because the City would own it. She stated that the preliminary estimate for the increment is $1.3 to $1.6 million over the 16 year period. She further explained that the Council would give a note to Presbyterian Homes and as development is completed, that note would be paid semiannually. Mr. Mehrkens explained that Presbyterian Homes would be obligated to create that value in their project. Councilmember Holden commented that Presbyterian Homes has had years to fix up the triangle property but hasn't done so. She then questioned the City's portion of TIF. Ms. Kvilvang stated it would be about 30% of the $1.3 to $1.6 million over the 16 years. Councilmember Holmes questioned if Presbyterian Homes pays property taxes and income taxes. Mr. Mehrkens explained that the only portion of their development that is exempt from property taxes is the Care Center. Because they are a charitable organization, they do not pay income taxes. Councilmember Grant noted that they had not extended the sidewalk along Lake Johanna Boulevard.