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ARDEN HILLS CITY COUNCIL WORK SESSION MARCH 31, 20148 quickly the TCAAP site developed. He explained that the Council needs to have a discussion on how these funds will be used in the future. He indicated that the funds could be used to cover the expenses for Kimley-Horn or to cover the expense for the water feature or for park development. Another option would be for the Council to offer economic incentives to new businesses. Councilmember Holden asked how much the City would be receiving in SAC and WAC fees. City Administrator Klaers estimated that the City would receive $2,485 at the current Met Council rate per unit. This equated to approximately $5,000,000 at full development. He explained that City SAC and WAC fees generated would assist with covering the expense of the City sewer and water utilities. He noted that Stacie Kvilvang, Ehlers and Associates, is working on financial studies and models that would be reviewed by the Council at future meetings. Councilmember Holden questioned how much of the $5,000,000 would be left after the City paid for the planning reports. City Administrator Klaers stated that about $500,000 would be needed for the Kimley-Horn planning study. He further reported that trunk utilities would be assessed to the benefiting property owners, likewise with a water tower if needed. Councilmember Holden did not want to see expenses for the property become too high that it did not develop. City Administrator Klaers agreed that this is a concern for the Council to consider. Mark Ruff , Senior Financial Advisor at Ehlers & Associates, stated that the County engineering staff has done some preliminary work on total expenses for this project. As the infrastructure RFP moves forward, the City will be provided with additional information on the cost estimates. Councilmember Holden stated that she would have a difficult time offering incentives when Old Snelling was in need of repair, and this was an issue that affected current taxpayers. She wanted to be ensured that the City would break even on the TCAAP project. Mr. Ruff believed that the City did not have enough information at this time. It was his expectation that the JDA was interested in creating a break even project. However, the real estate market over the next five to ten years was uncertain. City Administrator Klaers stated that he anticipated that the project would be self-sufficient from a City financial perspective. Mr. Ruff discussed how some companies were offered certain incentives in order to bring them to communities. City Administrator Klaers stated that for this reason, he wanted the Council to have a discussion on how the Met Council SAC credits would be administered in the future and to consider having a policy in place.