Laserfiche WebLink
ARDEN HILLS CITY COUNCIL WORK SESSION—MARCH 19, 2012 3 <br /> Mr. Belisle commented that without assistance this project could not move forward. <br /> City Planner Beekman indicated developers expect to make money over time through a <br /> development. The City was not looking to make a profit on the development but was looking to <br /> make an investment in the community. <br /> Community Development Director Hutmacher added that the cost of building these units <br /> would not allow for them to be geared towards workforce housing. For that reason, tax credits <br /> and grants reduce the capital costs of development so that rents are affordable. <br /> City Administrator Klaers stated the only risk with the development would be if the units were <br /> not rented. <br /> Mayor Grant questioned how much of the land costs were recouped through the sale of the <br /> antenna tower. <br /> Mr. Belisle explained he was asked to keep this information confidential. <br /> City Administrator Klaers stated the information may be public and available through Ramsey <br /> County. <br /> Councilmember Holden was in favor of providing some TIF dollars for the project. She was <br /> uncertain if the entire $225,000 was necessary. <br /> City Planner Beekman questioned if the application with the Minnesota Housing Finance <br /> Agency would be jeopardized if the TIF amount was reduced. <br /> Mr. Belisle did not feel this would jeopardize the application, as the City was assisting with <br /> reduced Park Dedication Fees and a trail. He noted the City did approve a higher density for the <br /> site, which assisted the project. <br /> Mayor Grant felt it would be difficult for the City to offer the same amount of TIF year after year <br /> as developments and initiatives throughout the community change. He questioned if $100,000 <br /> were offered by the City if Sand Companies could make up the difference. <br /> Jamie Thelen, Sand Companies, indicated Sand Companies has been investigating other funding <br /> sources to assist with the project. <br /> Councilmember Holmes asked for the estimated net profit for the first year of operation. <br /> Mr. Belisle anticipated the development would make approximately $50,000 in the first year after <br /> paying all operating expenses and debt services. He explained the units had to remain affordable <br /> for 30 years. <br /> City Administrator Klaers questioned if it would be appropriate to have Ehlers review the <br /> information and determine an appropriate level of TIF for the proposed development. <br />