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ARDEN HILLS SPECIAL CITY COLTNCIL WORK SESSION _ NOVEMBER7,2024 acquires the land. When they pay their property taxes in May and October, they will be paying the assessments. Councilmember Holden said all of the land will be in the LLC's name. Stacie Kvilvang confirmed. Councilmember Holden said that LLC is out of Delaware, and they can get out at any time. Stacie Kvilvang said they may not be out of Delaware. They can purchase under any LLC. Kori Land said the assessments won't go away. They stay with the land. Regardless if the LLC goes bankrupt or not, those assessments will have to be paid. If they aren't paid the land will be tax forfeited. Councilmember Rousseau asked about the $16.33 million estimated cost of the assessments. She wonders what that means for individuals moving into the community. Stacie Kvilvang said it isn't a direct impact to the homeowners. Those assessments will be assessed to the single family residential; commercial properties and apartments can bear more cost. Everyone will be assessed a portion. Those assessments are paid at the time the land is purchased. If a single-family developer buys l0 acres, they will pay a portion of the assessments. The ones that will keep the assessments over time are the commercial. Those costs are typically passed on to the tenants. Councilmember Rousseau asked about the HOA. She wonders how they are set up. She has heard concerns that HOA can hand out any penalty and there are some financers that will sell your townhome if you are in default and the homeowner doesn't get the equity back. She asked if there is any way to protect residents from predatory HOA agreements. Kori Land said Cities typically stay out of HOA documents. They are entered into by the developer and the development. They set up their own documents and they must be generic enough to encourage people to want to buy into the particular development, or they just won't buy there. It self-regulates because they can't gouge people. Stacie Kvilvang agreed the City should stay out of those discussions. She thinks the example Councilmember Rousseau brought up is more likely in a townhome development. Mayor Grant asked Stacie Kvilvang that when she says very little has changed from the2022 Term Sheet, he wondered if that meant the financials have not changed. Stacie Kvilvang said she doesn't think the financials have changed. Mayor Grant said they took out 32 acres of commercial and added residential. He asked how that didn't change the financials. Stacie Kvilvang said things have not changed significantly. Values have gone up and tax rates maybe are down. The bottom lines are there. We will continue to update accordingly based on what we know is going to be built.