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ARDEN HILLS CITY COUNCIL WORK SESSION—MARCH 19, 2012 4 Community Development Director Hutmacher explained the "But For" analysis from Ehlers could provide the Council with additional information on the proposed development and its overall financing. Mayor Grant asked if staff knew the expense of the "But For" analysis. City Administrator Klaers estimated this to be a $5,000 expense and would be paid for by the developer. City Planner Beekman indicated if the TIF funds were granted, the assistance would be available to the developer for 12 years. After that time, full property taxes would be paid. Mayor Grant stated the City could also take TIF from Cottage Villas and apply it to this project. That would allow the tax revenue from this project to be collected from Day 1. The advantage of using these funds was that it was slated for affordable housing. City Planner Beekman stated this would be an option and the City would see some cost savings by not creating a new TIF district. Mayor Grant questioned if the Council wanted to proceed with the $225,000 in TIF or allocate a lesser amount. He was willing to provide TIF funds to the development but was uncertain if the full amount was necessary. Councilmember Tamble stated he was in favor of the development but was unable to commit to a dollar amount. Councilmember Holden agreed. Councilmember Holmes indicated she too supported the project. Councilmember Werner was not solid on the numbers but was willing to pursue TIF for this development. He questioned if the City had to determine an amount at this time or simply offer support for the project. Mr. Belisle commented that an amount did have to be included in the letter of support for the Minnesota Housing Finance Agency. He offered to walk Councilmembers Werner and Tamble through the facility in White Bear Lake to provide more information on the proposed development. B. The Salvation Army dult Rehabilitation Center City Planner Beekman presented the City Council with further information on the Salvation Army Adult Rehabilitation Center. She noted this issue was discussed at a previous work session meeting. The Salvation Army was interested in moving their adult rehabilitation facility to the property at 1300 Grey Fox Road. The applicant is proposing the reuse of the existing warehouse building, and to construct a new building that would be the location of the site's housing and administrative functions.