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ARDEN HILLS CITY COUNCIL WORK SESSION MARCH 17, 20147 Councilmember Holmes questioned if the Council would have to raise its levy to support the bonding on TCAAP. Ms. Kvilvang stated that this would be part of , but she explained that the budget would have a line item for debt service which would be covered 100% through special assessments. Councilmember Holden inquired how the City would be impacted if there was another economic downturn and the TCAAP property was not selling quickly. Ms. Kvilvang reported that would be the trunk utilities; however, there was little risk that the County would default on its assessments. The only other risks are with the residential developers not paying their property taxes. Councilmember Holmes asked what would happen if a private residential developer went bankrupt. Ms. Kvilvang explained that the City would not receive payments and would actually become responsible for the bonds. The City would need to evaluate its risk threshold in order to best mitigate this situation. This could be done by the Council analyzing how long it is willing to issue debt, along with considering letters of credit or up-front cash deposits. Mayor Grant commented that another solution would be to limit how much of the development could be developed at any one moment in time. Director of Finance and Administrative Services Iverson reported that the Council could consider completing the TCAAP development in phases. City Administrator Klaers added that the County may also have ideas about the pace of the development. The County may not want any residential development until the commercial/business park is completed. This would ensure that the commercial areas are supported. He explained that this topic will have to be further discussed with the County at a future work session. Councilmember Holden questioned if the City had an understanding of the expense required to develop areas with vapor issues into residential. Ms. Kvilvang did not have information on this topic. She believed that it would be reasonable for the City to make this request and reported that she would request this information from the County. City Administrator Klaers believed that the County had not run proformas regarding this topic. Councilmember Holmes inquired if the City wanted to do TIF on the TCAAP site.