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<br /> ARDEN HILLS TRUTH-IN-TAXATION - DECEMBER 4, 1997 6 <br /> . Mr. Fritsinger noted the size of the bond issuance proposed to be undertaken for the Gateway <br /> development and the reimbursement to the City was based on very conservative assumptions, <br /> The majority of the cost is covered, The items not identified, such as Stafftime and the <br /> acquisition of the Kern Milling site, are shown in the General and other funds. Also, a portion is <br /> to be paid by the developer. <br /> Mr. Aiken pointed out there is a history of TIF financing where the property is not returned to <br /> regular taxing but, rather, it is re-circulated. Mayor Probst noted Arden Hills has always been <br /> very conservative and, in its history, this is only the second project where TIP has been used. <br /> The Staff has been very rigorous to make sure TIP has been used properly, He explained there <br /> are limited funds and once those are repaid, the funds coming in will go to the General Fund or <br /> regular taxing revenues made available to all jurisdictions, <br /> Councilmember Malone offered a brief explanation of TIP, When there is a portion of land <br /> which is declared by a government body as a District available for TIP funds, a developer can <br /> request assistance by the City to develop that land. The City then spends the money to develop <br /> the land and retains 100% of thc tax revenues until that investment for development is paid back, <br /> In order to receive the ability to do this, the City has to pass a test to prove the necessity for the <br /> District Also, developers have played city against city to obtain this subsidy, <br /> COUNCIL/ADMINISTRATOR COMMENTS <br /> . Mayor Probst and the Council thanked all those in attendance. <br /> ADJOURN <br /> MOTION: Councilmember Malone moved and Councilmember Hicks seconded a motion to <br /> i adjourn the meeting at 8:50 p.m, The motion carried unanimously (4-0). <br /> I ~ <br /> 1/ - <br /> f _ <br /> Brian fits <br /> City Adminis rator <br /> . <br />