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ARDEN HILLS CITY COUNCIL WORK SESSION—APRIL 15, 2013 4 Councilmember Holmes indicated TCAAP may have a great deal of expenses in 2014. She supported a budget with more than a two percent increase. Councilmember Werner was in favor of a budget somewhere between zero and two percent. Councilmember Holden agreed with a two percent increase in the budget. Mayor Grant directed staff to proceed with the 2014 budget with a working number of a two percent tax levy increase and that the Council will discuss the issue at future work session meetings. D. Tax Forfeited Property at 3208 Hamline Avenue North Community Development Director Hutmacher explained on December 10, 2012, the Council approved a resolution requesting Ramsey County to withhold tax-forfeited land located at 3208 Hamline Avenue North from public auction while the City considered whether it should acquire the property. Although cities could previously acquire tax-forfeited land for public open space at no cost, cities now must pay "below market value" which is based on the parcel's value as conservation land. Community Development Director Hutmacher indicated that Ramsey County has established a conservation land purchase price of $500 plus $92.65 for fees and taxes. If the City moves forward with the acquisition, staff recommends that a Phase I Environmental Site Assessment be completed at a cost of $1,775. She commented the City's six-month hold expires on June 16, 2013. Staff questioned if the Council wanted to see the site be used for open space or be made available for private development. Councilmember Holden recommended the property be purchased and the Phase I Environmental be completed. Councilmember McClung agreed with this suggestion as this site would be difficult to develop. Councilmember Holmes was in favor of purchasing the parcel but did not feel the Phase I Environmental was necessary. Community Development Director Hutmacher explained the Phase I would protect the City and provide information on how the site was used in the past. Mayor Grant considered the Phase I part of the purchase costs and noted the environmental study would provide the City with some assurance that the site does not have environmental issues. Councilmember Werner asked if the parcel would have any future maintenance expenses. Public Works Director Maurer estimated the only expenses to be future tree trimming as the parcel would be a natural open space.