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ARDEN HII..LS REGULAR CITY COUNCIL MEETING MINUTES APRIL II, 2005 12 . incredible recreational opportunities within the community that would be shared by all residents of the community. He stated he believed it was important not to set up two sets of books to divide the north and south parts ofthe City, He urged Council to proceed with this policy and these details more appropriately belong in the Development Agreements to follow and not in the Financing Policy. He asked Council to support this, but be careful about the wording about protecting the existing community so the City did not become divided, Bruce Kunkel, Arden Road, Chair of the EDC, stated the statement on page 8 of9, 7A was something the EDC discussed at some length amI it was something the EDC did not want the City to move away from. He understood Council did not want to split the City, but this was a concept that they wanted to keep in front of everyone in that they did not want the current residents paying for the development of TCAAP. However, with respect to recreational development, if all residents were going to share in the benefits ofTCAAP, they would need to look at the financing ofthose recreational developments to be shared by all of the residents of the City, and in the resource plan, the needed to make sure this was not a tax burden on the current residents of Arden Hills. In terms of the general operating expense, the City needed to work with the developer that the development would pay for its own operating costs, Mayor ApIikowski asked if this was addressed in the Resource Plan. Mr. Kunkel replied it was. . Collin Barr, CRR, stated the common mechanism seen for redevelopment was to use General Obligation Bonds secured by TIP and minimum assessment. The burden to pay the bonds back were put on the property owner and not the City, but there were instances where they did not want to issue General Obligation Bonds. With respect to the TIP structure, it was his understanding that the EDC put this forth as a challenge for the developer to draft budgets for local services and understand what the costs would be as well as the revenue expected and once they finished their work, they would have firm costs, Mr. Filla noted Council would see how all of this would play out in the Master Development Agreement. Councilmember Grant asked if they used levy dollars for emergency services was that legaL Ms. Kvilvang replied they could not use tax increment levy dollars for emergency services, Mr. Clark stated they could change Page 7, I, first paragraph, to read: To assist reducing TCAAP project expenditures, the City mav consider issuance, as a last resort, of general obligation bonds for infrastructure improvements", Mr. Filla replied he liked the statement the way it was and the Council only had to use General Obligation Bonds if they knew they were not going to affect the current residents of Arden Hills, Mr. Inman noted Council would have the opportunity to discuss this issue two more times, once in the Master Development Agreement and again if they decided to issue bonds, .