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ARDEN HILLS CITY COUNCIL—APRIL 22, 2024 2 indicated the Council will be seeing the proformas at some point before any formal agreements move forward. Councilmember Holden stated according to the Arden Hills spreadsheet, the City will be in a $5.5 million deficit in 20 years. She questioned if this spreadsheet took into account the fact that affordable housing properties would only be paying 25%in property taxes. City Administrator Perrault stated he would have to double check on this, but it was his understanding the affordable housing was not included in the proforma. Councilmember Holden indicated this meant the deficit would be even larger than $5.5 million. She commented on how she had spoken to representatives from Ramsey County and that they were talking about how bad the soil was on TCAAP and that the site may be redesigned by the developer. She inquired if these concerns were valid. City Administrator Perrault explained there was significant soil correction that had to be done. He reported Alatus had engaged with a few consultants to determine if it would be feasible to move the soil onsite or do a redesign. He indicated it was his understanding Alatus was looking at the same plan that has been around for years and they were not looking to redesign the project. Councilmember Holden asked if tax credits were built into the horizontal build out. City Administrator Perrault reported the horizontal build out does not include tax credits. Councilmember Holden stated after reviewing the horizontal build out analysis, it appears Alatus would be receiving a 30% profit margin. She questioned if this was what the JDA was planning to give the developer. City Administrator Perrault commented with respect to the horizontal infrastructure, there was a gap that had to be filled. In recent conversations, the County's financial advisor has asked Alatus what they could bring to the table. Alatus has stated they could bring $10 to $15 million. In return for bringing this money to the table, Alatus was looking for a 2X or 3X return on this investment. Councilmember Holden asked if it would cost an additional $30,000 to make each home electric only within TCAAP. She inquired if this additional fee was built into the proformas and financial projections. City Administrator Perrault stated he did not recall this number being discussed by Alatus. Councilmember Holden reported Todd made this statement. City Administrator Perrault explained the additional $30,000 to make each home electric-only was not built into the proforma. Councilmember Holden questioned if staff had verified what the developer would be donating or putting in-kind to the development.