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ARDEN HILLS CITY COUNCIL WORK SESSION - JULY 21, 2008 13 Councilmember Grant reiterated the fact that this development is more than just land sales. Councilmember Holmes agreed stating if the developer brought in more than 15% their TIF would be reduced. Councilmember Grant questioned how vertical rates of return would be monitored after the sale of property, such as with residential properties. Ms. Kvilvang indicated the property owners would come before the City for review of their proposed developments and that Ryan would only be selling their property at market value. She explained that this would have to be continually monitored because land values will change over the course of this project. Councilmember Holmes asked for the total amount of TIF that was being offered by the City at this time. Ms. Kvilvang stated $147 million was the estimated amount of the future value of TIF at this time, but that the suggested value by Ryan Companies was $54 million in present value. The City has not committed to a specific amount. Mayor Harpstead reviewed the discussion, itemizing the items agreed upon by Council at this time. He stated the Council was in favor of proceeding with the development but that a vertical assessment was needed along with the land development sales. Mayor Harpstead explained that TIF would be required in order to reach a desired fate of return for the developer with the amount still up in the air. Council understands the developer is investing $25 million up front for this project along with borrowing additional funds. Mayor Harpstead indicated the developer wants 150/0 internal rate of return for the development of the land. The Council was in agreement with these statements and further discussed how to proceed with negotiating the rate of return with Ryan Companies. Councilmember Grant stated he would like to see TCAAP provide a special amenity to the City of Arden Hills, whether it be a bridge, trails or sound barrier walls.