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, , , ,. Minutes of the Arden Hills Regular Council Meeting, 12-30-91 Page 3 I TIF (Cont'd) Cook explained the 1986 Tax laws reduced incentives for development and rates would have to be raised awrox:illlately 10 percent for the project to be economically feasible to a developer. He irxlicated the project amenities would have to be removed to keep the rents reasonable and :make the project econanically feasible for development. Cook irxlicated the savings and loan crisis and other factors contriJ::uted to the difficulty in the lerrling market. Council asked the Financial Consultant to conunent 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 sul::m'bs, it appears that all multifamily projects have been carrpleted 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, asslUIling the developer's market data is a=ate. Casserly suggested Council consider whether = not the project makes good sense f= the community and if the City wishes to participate in assistance f= this project. eouncilmember Malone expressed a preference for the developer funding the project, rather than the City sumiclizing the project; irxlicated he is open to further discussion on the matter. I eouncilmember Mahowald favored the project and the TIF assistance. He noted it appears the City is fully protected and the project was initially awroved by the City. Councilmember Growe stated her initial response was opposition to the project, however, she remains open to further discussion. Mayor Sather favored development 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 permit any further extension of approval and the proposal should again be reviewed by Planning ConmIission. Filla suggested the project be forwarded to Planning ConmIission and reviewed by Council in January or February 1992. 'Ihere was discussion relative to drafting language in the development agreement for the project to insure the "no risk" factor for the City. eouncilmember Malone advised he would prefer the city allow development cx:cur in the open market rather than participate in TIF assistance. Financial Consultant Casserly explained at this time Council action would be to approve the concept f= TIF financing and an agreement would then be prepared for review at a future meeting. I Attorney Filla explained that Council approval of the concept does not automatically insure approval of the financing package or the right to deny the request at a later date.