CCP 02-10-1992 - Laserfiche WebLink

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--------.-- , Minutes of the Arden Hills Regular Council Meetirq, 12-30-91 Page 3 TIF (Cont'd) C=k expla:ined the 1986 Tax laws re:iuced incentives for . development and rates would have to be raised approxirnately 10 percent for the project to be economically feasible to a developer. He indicated the project amenities would have to be rerroved to keep the rents reasonable and make the project economically feasible f= development. Cook indicated the savings and loan =isis and other factors contril:uted to the difficulty in the lendirq market. Council asked the Financial Consultant to carnnent on the proposal. Casserly advised it is difficult to predict the success of this type of project, however, based on his experience in the northern suburhs, it appears that all l11llltifamily projects have been campleted with assistance and he is not able to predict when the market will change, He further stated that the city is secured for any type of participation, assuming the developer's market data is a=ate, Casserly suggested Council consider whether or not the project makes good sense for the cormnunity and if the City wishes to participate in assistance for this project. Councilmember Malone expressed a preference for the developer fundirq the project, rather than the City suhsidizirq the project; indicated he is open to further discussion on the matter. Councilmember Mahowald favored the project and the TIF assistance. He noted it appears the City is fully protected and the project was initially approved by the . City. Councilmember Growe stated her initial response was opposition to the project, however, she remains open to further discussion. Mayor Sather favored developrnent without assistance. Attorney Filla advised the project was initially approved in December 1989 and a one year extension, as required by City Code, was granted in November 1990. He advised the Code does not pennit any further extension of approval and the proposal should again be reviewed by Plannirq Commission. Filla suggested the project be forwarded to Plannirq Commission and reviewed by Council in January or February 1992, 'Ihere was discussion relative to draftirq language in the development agreement for the project to insure the "no risk" factor for the City. Councilmember Malone advised he would prefer the city allow development occur in the open market rather than participate in TIF assistance. Financial Consultant Casserly expla:ined at this tbne Council action would be to approve the concept for TIF financirq and an agreement would then be prepared for review at a future meetirq. Attorney Filla explained that Council approval of the concept does not . autanatically insure approval of the financirq package or the right to deny the request at a later date.