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ARDEN HILLS CITY COUNCIL WORK SESSION--OCTOBER 18, 2010 5 Councilmember Holmes commented that the City would be giving up approximately $500,000 (if TIF is approved) but we would also have to factor in the $150,000 sewer and road improvements to be done by Presbyterian Homes. She then asked if the triangle property would be donated to the City without TIF. Mr. Mehrkens explained the road and sewer improvements and deed to the property would be in exchange for the full TIF package. Councilmember Holden questioned if additional changes can be made by the Council or Planning Commission. City Planner Beekman stated changes can be made. City Administrator Klaers clarified that statement explaining that as long as the changes were minor, they can be done but not substantial changes that increase the costs for Presbyterian Homes or which reduce the value of the project. - Mr. Mehrkens explained that his goal for tonight is to determine whether or not the Council will support TIF with the total package that Presbyterian Homes is proposing. Mayor Harpstcad commented that the proposal to replace the 60 year old building and construct it further away from the shoreline would benefit the City and the surrounding neighbors. City ownership of the triangular piece of property would allow for the location of a gateway entry sign for the City. Councilmember McClung stated that there have been sufficient changes in the proposal and assuming this meets all "but/foe'tests, he would be supportive of TIF as there is enough benefit to the community. Councilmember Holmes stated she is troubled by the fact that Presbyterian Homes does not pay income taxes. Mr. Mehrkens explained that as a non-profit nursing home owner the profits are directly reinvested into the operation with only a 3% profit margin allowed for non-profit organizations. He added that without TIF, their plans would change to a simpler design, lower class materials, and a lower percentage of common space all of which would be detrimental to the community. City Administrator Klaers explained that Presbyterian Homes would continue to pay their current property taxes even if TIF is approved. Councilmember Holden commented that some sewer system problems have been related to Presbyterian Homes and she questioned if the new sewer would be improved and/or address safety mechanisms to prevent those problems. Public Works Director Maurer responded yes, the sewer improvements would address those concerns, but he pointed out that the sewer issues are unrelated to Presbyterian Homes. He