8A, Renewal of Letter of Support for Arden Village Tax Credit Application

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ARDEN HILLS CITY COLJNCIL — February 14, 2011 7 7.B. Approve Resolution 2011-008 in Support of Arden Village HOME/CDBG Application � (continued} Mr. Thelen stated this was correct. Councilmember Holden stated when the TIF run was originally done it was set at a m�imum of up to $225,000, which was based on the cost of the land and other factors. She asked if the price that SCI paid for the properiy when they closed on it in December was the same as the amount that was used in the TIF run. Community Development Director Hutmacher answered that she did not have the amount that was paid at closing available and was not sure at this time if it was the same number that was used in the TIF run. In order to determine TIF eligibility a new TIF run would need to be reviewed. Mr. Thelen stated he did not have the exact amount but a purchase agreement had been provided to the City when the original TIF run was performed. The price that SCI paid for the property is the same as the amount that was on the purchase agreement. Councilmember Holmes asked for clarification regarding how the SCI project that was completed in White Bear Lake would support additional TIF funding in Arden Hills. Community Development Director Hutmacher stated the prior TIF runs had been based on the � estimated assessed value of the property and the projected t� revenue the properiy would generate. The t�-assessed values were lower than what was expected. The SCI project in White Bear Lake is similar to the one being proposed in Arden Hills and the values are higher on this property. SCI is questioning if the values that were being estimated for the Arden Hills development were lawer thari they ought to be, especially when compared to a similar project that has been completed. SCI would like to have this reviewed. Mayor Grant clarified the City was being asked to endorse up to $225,000 in funding but not committing to a TIF District. Councilmember Holden clarified that even if the TIF runs show the project was eligible for $225,000 the City could approve any amount they wished up to this maximum. Community Development Director Hutmacher stated the City had previously approved a Ietter of support for up to $225,000 in TIF funding, based on the but/for analysis and SCI receiving funding from MFHA. SCI is requesting support from the City for their application to Ramsey County for the HOME/CDBG funds. City Administrator Klaers stated the letter of support provided to SCI in June for up to $225,000 in funds is not a guarantee but is a good faith commitment and it would be difficult for the City to back out of this. � Councilmember Holden clarified that by supporting the application to Ramsey County the City was providing a commitment to up to $225,000 in TIF because the project is based on this amount.