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<br />ARDEN HILLS CITY COUNCIL - July 28, 2008 <br /> <br />6 <br /> <br />Ms. Kvilvang reviewed the process of a developer looking for public assistance and <br />one of the things required to be submitted to the City is a Development Proforma. <br />She also stated that the rate of return is setting the benchmark for negotiations. This <br />is used to determine if public assistance is warranted or needed. She stated that the <br />resolution being presented tonight states a rate of return of 150/0 for RRLD and this <br />is a reasonable rate of return. She stated that this is being passed as a resolution in <br />an effort to assist the City with the large redevelopment project by breaking it down <br />into smaller steps. She stated that approving this resolution does not guarantee this <br />rate ofretum to RRLD. <br /> <br />Councilmember McClung asked if the wording under Now, Therefore, Be It <br />Resolved, item 1 (b) could be changed to read: determining whether tax increment <br />or other public financial assistance (if any) that is reasonable required in order to <br />reach market feasibility. He asked if this change would be out of context with the <br />intent of the resolution. <br /> <br />Ms. Kvilvang stated that this change would not be a problem. <br /> <br />Councilmember- McClung stated that the wording '~if any" appears to be to the <br />clause public finance assistance refers to and not to both tax increment and public <br />financial assistance. <br /> <br />Councilmember Grant asked if the financial and market feasibility analysis had <br />been completed. <br /> <br />Ms. Kvilvang stated that these have not been completed. <br /> <br />Councilmember Grant stated that he would like to change the first line in the <br />second. Whereas and insert the words "and continues to evaluate" after the word <br />evaluate. <br /> <br />Councilmember Grant stated that the third Whereas does not specify the internal <br />rate of return. It also does not indicate that this is negotiable. He stated that it <br />could state that there is a maximum and negotiable internal rate of return. <br /> <br />Ms. KviJvang stated that at this time this is not something that is really negotiable <br />but rather something that they will be working towards. <br /> <br />Councilmember Grant stated that the direction that the Council is giving is that <br />the 150/0 is the maximum and this is expected to be negotiable. He stated that as the <br />developer is able to pull risk out of this project then the rate of return should go <br />down and he does not want the 15% to be locked in stone. <br />