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<br />I~ ... <br />I CITY OF ARDEN HILLS <br />it MEMORANDUM <br /> DATE: January 8, 1997 <br />I TO: Brian Fritsingcr, City Administrator <br />I FROM: Terrance Post, City Accountant@ <br /> SUBJECT: Cottage Villas TIF Compliance Review <br />I Background <br />I The TIF Agreement between the City of Arden Hills and the Cottage Villas of Arden Hills <br /> Limited Partnership for the Cottage Villas senior apartment project has become active in 1996 by <br /> virtue of the partnership incurring the costs of public development activities in prior years and <br />1 the partnership paying real estate taxes in 1996. The City of Arden Hills has received <br /> $62,580.30 in 1996 tax increment on this project (County District #2-H) and has yet to distribute <br /> any increment back to the partnership. <br />I Operational Issues <br /> Although City Attorney Filla is still working on formally recording the TIF Agreement, <br />.. additional items also need to be addressed. They include: <br /> 1. With the exception of the Kem Milling site demolition in the Gateway Business <br />I District, the City of Arden Hills has not been an active TIF participant in <br /> development activities. Thus, with no TIF increment has come limited TIF <br />I administrative expertise. <br /> 2. This particular TIF Agreement is unusual in nature in that the document calls for <br />I the developer to demonstrate financial need for increment based upon actual <br /> financial performance of the property. <br />I 3. Related to both of these issues is the vigor in which the Office of the Minnesota <br /> State Auditor is conducting TIF District compliance audits around the state. The <br /> City's financial advisor, Ehlers and Associates, Inc., has been active in assisting <br />I other municipal clients prepare for this more regulatory environment. <br /> Recommendation <br />I Staff recommends that the Arden Hills City Council consider authorizing staff to enter into an <br /> agreement for professional services with Ehlers and Associates, Inc. for a price not to exceed <br />I $2,500.00 for the purpose of providing tax increment compliance review services for Tax <br /> Increment Financing District No. 2-H - Cottage Villas of Arden Hills, as detailed in the attached <br /> proposal. <br />.- <br />1 <br />