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ARDEN HILLS EDA MEETING APRIL 29, 2013 3 President Grant stated a TIF District would be going offline in 2015 and this would provide the City with more of a cushion for future projects. Commissioner McClung indicated Presbyterian Homes made up a good portion captured tax capacity. He commented that Cottage Villas and Round Lake were the other two districts in place at this time. He expressed concern with the redevelopment taking place in Red Fox/Grey Fox and how TIF could be used to benefit this area. President Grant was comfortable with a low captured tax capacity limit. He did not see the need for TIF in the TCAAP redevelopment. Secretary Klaers explained prior to Presbyterian Homes, the City captured $590,000 in TIF which tax capacity was $773,000 which was 4.8%. President Grant proposed a 5.8% cap on captured tax capacity be used. He requested comments from the Commissioners. Commissioner McClung recommended the cap be set as accurately as possible. He understood the cap was a guideline that could be adjusted. He suggested 6.0%. Commissioner Werner was in favor of 6%. Commissioner Holden agreed with the 6% but recommended this issue be discussed by FPAC in further detail. The EDA requested the cap be set at 6% and direct staff to review this item again in six months. Commissioner Holmes suggested that the language within the criteria read that all viable requests will be reviewed by a third party financial advisor. Several other language revisions were discussed. Executive Director Hutmacher questioned if the EDA wanted the Council to approve this document this evening. The Commission recommended this item move forward to the Council. B. EDA Revolving Loan Program Update Executive Director Hutmacher stated the EDA requested the revolving loan fund be investigated to see where the funds came from. This issue was researched by Community Development Intern Matthew Bachler. Community Development Intern Bachler discussed the history of the revolving loan program noting it was established in 1997 to allow the City to participate in the Minnesota Investment Fund (MIF). The fund provides industrial and manufacturing businesses with low cost financing for job creation and retention projects. The loans are administered through local governments and the program allows local governments to retain a portion of the loan principle and accrued interest to establish a revolving loan fund.