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

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ARDEN HILLS CITY COLTNCIL — February 14, 2011 g 7.B. Approve Resolution 2011-008 in Support of Arden Village HOME/CDBG Application � (continued) Community Development Director Hutmacher stated the City made a good faith commitment in June for up to $225,000 in TIF funding and SCI has invested time and money into this project based on this information. SCI has also used this information when applying for other funding for the project. The City can choose to provide a lesser amount and the City would need to approve a TIF District. Councilmember Holden stated the June 14, 2010 Resolution was support for the MFHA application in June. She asked how long this letter would be in effect. Community Development Director Hutmacher stated it is not unusual for this process to take a long time but she could not say if there was a set time frame for expiration. City Attorney Jerry Filla stated SCI was asking for this resolution to clarify the support the City offered nine months ago with its June 24101etter. He asked Mr. Thelen if this was correct. Mr. Thelen stated SCI was looking at adding another funding source to cover the $1.7 million gap for the project and this would provide for additional points when they reapply for MFHA funds in June. SCI is not asking the City to change its commitment at this time. They may come back to the City in a couple of months to review this commitment but at this time SCI is asking for the City's support in applying for the Ramsey County HOME/CDBG funds. � City Attorney Filla clarified the resolution was for support of the grant funding application only and not a change in the TIF commitment. Councilmember Holden stated the whole foundation of the resolution rests on the commitment of TIF. Mr. Thelen stated he did not know if Ramsey County would be asking if there was any local participation in the project and so he did not know if the 3une 14, 2010, letter of support would need to be included in the application. The letter from June 14, 2010, providing a good faith commitment from the City for up to $225,000 in TIF funding is completely separate from the request to support SCI's grant application to Ramsey County. SCI will ask the City for an updated letter of support, including TIF funding, for the grant application to MFHA in June. SCI understands that the City is under no obligation to support or approve an increase in the TIF support previously approved. Councilmember Holmes stated at this time she would not be comfortable with not agreeing to the TIF support at this time. SCI purchased the property for the development based on the City's commitment. The City has a commitment to stand by the June 14, 2010, letter for a reasonabie length of time. Mr. Thelen stated SCI has done a market study for the project. The recently completed project in � White Bear Lake has been successful. SCI has gotten the approvals from the Planning Commission and the City Council for the project. SCI purchased the property in hopes of continuing the project.