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ARDEN HILLS CITY COUNCIL WORK SESSION—MARCH 17, 2014 7 <br /> Councilmember Holmes questioned if the Council would have to raise its levy to support the <br /> bonding on TCAAP. <br /> Ms. Kvilvang stated that this would be part of the City's debt, but she explained that the budget <br /> would have a line item for debt service which would be covered 100% through special <br /> ecial <br /> assessments. <br /> Councilmember Holden inquired how the City would be impacted if there was another economic <br /> downturn and the TCAAP property was not selling quickly. <br /> Ms. Kvilvang reported that the City's biggest expense would be the trunk utilities; however, there <br /> was little risk that the County would default on its assessments. The only other risks are with the <br /> residential developers not paying their property taxes. <br /> Councilmember Holmes asked what would happena p if private residential developer went <br /> bankrupt. <br /> Ms. Kvilvang explained that the City would not receive payments and would actually become <br /> responsible for the bonds. The City would need to evaluate its risk threshold in order to best <br /> mitigate this situation. This could be done by the Council analyzing how long it is willing to issue <br /> debt, along with considering letters of credit or up-front cash deposits. <br /> Mayor Grant commented that another solution would be to limit how much of the development <br /> could be developed at any one moment in time. <br /> Director of Finance and Administrative Services Iverson reported that the Council could <br /> consider completing the TCAAP development in phases. <br /> City Administrator Klaers added that the County may also have ideas about the pace of the <br /> development. The County may not want any residential development until the <br /> commercial/business park is completed. This would ensure that the commercial areas are <br /> supported. He explained that this topic will have to be further discussed with the County at a <br /> future work session. <br /> j Councilmember Holden questioned if the City had an understanding of the expense required to <br /> develop areas with vapor issues into residential. <br /> Ms. Kvilvang did not have information on this topic. She believed that it would be reasonable for <br /> the City to make this request and reported that she would request this information from the <br /> County. <br /> i <br /> City Administrator Klaers believed that the County had not run proformas regarding this topic. <br /> Councilmember Holmes inquired if the City wanted to do TIF on the TCAAP site. <br /> I <br />