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<br />ARDEN HILLS CITY COUNCIL WORK SESSION - JULY 21, 2008 <br /> <br />4 <br /> <br />Ms. Kvilvang noted the public dollars would be provided for the land development <br />or infrastructure costs. She stated this would assist the developer in grading and <br />preparing the site for injtialland sales. Ms. K vilvang explained that neighborhood <br />streets and parks would be added at a later time by the third party developers. <br /> <br />Councilmember Holden questioned what the projected infrastructure costs were at <br />this time. <br /> <br />Ms. K vilvang indicated this was estimated to be $27.8 million. <br /> <br />Mr. Bubul further explained how TIF funding can be used by the developer and <br />reminded the Council that this site is "impaired." He stated the massive cleanup <br />and infrastructure needs on this site warrant TIF funds for initial development. <br /> <br />Councilmember Holden questioned if the GSA funding or credits covered <br />anything beyond the cleanup, such as grading the site which could lend to double <br />counting of expenses. <br /> <br />Ms. Kvilvang stated this was a great question and seemed logical. She noted this <br />may affect the numbers after the cleanup was completed. <br /> <br />Councilmember Grant read that the level of public assistance would be adjusted <br />at the end of the project with the TIF amount provided reduced if the profit was <br />greater than agreed upon. He questioned when the "end of the project" was in this <br />instance. <br /> <br />Ms. Kvilvang indicated this would be upon completion of the land development <br />phase. She stated vertical sales would be reviewed as well to see if the developer's <br />projected numbers were aligning with actual sales or if the use of public assistance <br />needs to be reduced. <br /> <br />Councilmember Holmes indicated she was concerned with the fact that the <br />developer had first rights to the property and how this would affect which parcels <br />they sold off first. She stated they need to recognize the value in controlling the <br />land. <br /> <br />Councilmember Grant questioned if a control could be set on the developer to <br />force them to develop instead of simply hold the land until they expect 150/0 return <br />on their money. <br />