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<br />ARDEN HILLS CITY COUNCIL WORK SESSION- TCAAP MDA- May 24, 2007 <br /> <br />2 <br /> <br />Councilmember Holden stated they may need the public financing. <br /> <br />Council discussed the "but for test". Councilmember McClung felt it would be much easier if in <br />the statute the legislature states this is the "but-for test" and how to do it. He indicated that <br />basically the City can determine how vigorous they want to be with the test. <br /> <br />Mr. Sid Inman stated Ehlers had recommended that Council tell the developer what the City's <br />standards are. He indicated this is a real estate transaction and the City is allowed to ask for what <br />they want. The developer may accept it as part of the risk or they may say they are not willing to <br />accept it. <br /> <br />Ms. Kvilvang indicated that for the next meeting she will list of things they feel should be in the <br />agreement to protect the City and their assets. She indicated she will also add a secondary <br />category of items that Ehlers thinks there will be a need to. <br /> <br />The Mayor indicated he felt the City needed to have a list of priorities and then they could start <br />talking public financing. <br /> <br />Mr. Inman suggested they determine items that are absolutes. He wanted to know if Council <br />agrees the "but for test" include the total for the land transaction and the construction. <br /> <br />Council was in agreement. <br /> <br />Ms. Kvilvang also asked if the City was willing to issue debt that's supported by a special <br />assessment bond in order to help the project. <br /> <br />Mayor Harpstead and Councilmember McClung indicated they were willing to look at that as a <br />tool. <br /> <br />Attorney Steve Bubul indicated a certain amount of TIF could be spent outside the district. He <br />could see some scenarios that could present themselves where TIF on TCAAP would provide <br />something for the rest of the city. <br /> <br />Ms. Kvilvang asked if this is a tool the City would be willing to look at. There was further <br />discussion about TIF. <br /> <br />Mr. Inman noted that TIF can be used for public infrastructure. He also indicated that cities can <br />retain 10 percent for administration <br /> <br />Councilmember Holden indicated it would make a difference and they should start with that <br />policy. <br /> <br />Mayor Harpstead indicated using the 15 percent outside the district could provide some benefits <br />to the people that are going to live next to the redevelopment. <br /> <br />Mr. Bubul indicated there are limits because it is going to be a redevelopment district and the <br />monies need to be used for redevelopment projects and not to pay for streets and roads. <br />