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ARDEN HILLS CITY COUNCIL - July 28, 2008 10 Councilmember McClung stated that the concern is that the City not be locked into a rate of 15% in case something changes. Councilmember Holden asked how the City would be locked In because the resolution is to evaluate the Performas. Councilmember Grant stated that if the 15% is not achieved then the amount of TIP is raised to reach that goal. Councilmember Holmes stated that this was the point and that the City is agreeing that the developer can get a 150/0 rate ofretum. She also stated that if there are risks that change or if different money comes in a different way the City is still guaranteeing a 150/0 rate ofretum. Councilmember Holden stated that the City does not have to provide any TIF then the deal falls through. Mayor Harpstead stated that the Now, Therefore section of the resolution is the direction that the City is giving not Whereas direction and the Now, Therefore section states that the City is evaluating Performas and will consider a 15% maximum benchmark for internal rate of return. Motion to amend the third Whereas was called to a vote. The motion failed (2-2-1 -Mayor Harpstead and Councilmember Holmes - Councilmember Holden abstained). Councilmember Grant stated that under the Now, Therefore section, item 1 the last line refers to look back provisions based on future performance. He stated that at the end of the sentence he would like to add the phrase "of land and vertical development" . Mayor Harpstead stated that this was included in item 2 of this section. Councilmember Grant stated that this is specifically excluded [rom the resolution. Mr. Bubul stated that this resolution is related to the land development rate of return and this resolution only refers to the horizontal development. The vertical development will be looked at later. Mayor Harpstead stated that as the resolution reads now it IS to the City's advantage.