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<br />ARDEN HILLS CITY COUNCIL WORK SESSION - JULY 21, 2008 <br /> <br />5 <br /> <br />Ms. Kvilvang stated this would be expected and would be written into the <br />developer's agreement to provide incentives for developing quickly. <br /> <br />Mayor Harpstead asked about the TIF number at year five being $16.6 million <br />when only $4 million had been collected to date. He stated if the project were to be <br />financed as such, the internal rate of return would be reduced. <br /> <br />Ms. K vilvang stated these were the numbers provided by the developer and that in <br />reality the TIP funding would come into effect sooner than year five. <br /> <br />Mayor Harpstead questioned if the total available for this project was correct at <br />$147 million. He indicated the net present value of these dollars would need to be <br />considered at some point. <br /> <br />Ms. Kvilvang agreed stating this number was correct. She reiterated the fact that <br />inflation was not put into her numbers and that her proforma was on the <br />conservative side. Ms.' K vilvang added that a present value of these dollars would <br />be refined during the process of this development. <br /> <br />Mayor Harpstead stated the internal rate of return were extremely sensitive to <br />what happens in the first few years of the project. He indicated the land sales and <br />how they are financed will greatly affect this project. <br /> <br />Councilmember Holden questioned what the TCAAP administrative costs were. <br /> <br />Mr. Bubul stated this may not run as high as 10% but would cover the tax <br />increment finance district established for this project. <br /> <br />Mayor Harpstead asked that the discussion on this item be suspended to allow for <br />the Naming of TCAAP to ensue with public comments. <br /> <br />B. Continue the Discussion on Naming the TCAAP Property <br /> <br />Tanya Spaulding indicated she was before the Council to present several names <br />for the TCAAP site. She reviewed the goals and recapped the three names <br />presented at the past Council meeting. Ms. Spaulding explained the criteria used <br />in naming the site. She stated the three names were Arden Crest, The Ridges and <br />Capstone. Ms. Spaulding asked for comments from the Council on the proposed <br />names. <br />