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ARDEN HILLS CITY COUNCIL WORK SESSION - MAY 19, 2008 6 Ms. Kvilvang stated the average would be $300,000, noting some homes would be above this price point, while others would be below. She noted this number will continue to be reviewed through this process. Councilmember McClung asked how the land values were established. Ms. Kvilvang stated Ryan's assumptions were reviewed and an inflation factor was added over time to phase the sales of the project until completed. She explained that the land values would be changing based upon review of the Maxfield study and how special assessments were going to be addressed. Additional discussion was held on the line items and how the numbers were determined. Ms. Kvilvang indicated the numbers were a starting point and that they would be adjusted going forward when further estimates are received. She stated these numbers could also be changed during the development process based on the developer and what fees they assume. Councilmember Holmes asked why Ryan Construction would charge a 60/0 fee for the development. Ms. Kvilvang explained this was to cover their administrative expense over the 10-15 years of developing this site. She noted this was a standard fee to help them cover their expenses while developing such a large land area. Ms. Kvilvang stated she has now refined the numbers with Ryan Construction stating a big change was to the infrastructure costs. She stated that the original $35 million cost was reviewed by Ryan, the City and the engineers and was refined to $28 million. Ms. K vilvang handed out a revised infrastructure expense breakdown to the Council and noted the roadways were now phased and color coded within the development. Mayor Harpstead stated the $28 million does not take into consideration any neighborhood parks or civic buildings. This number would cover roadways, sewer and water. Councilmember Holmes expressed concern about the flow of traffic in the higher density areas and asked if this has been considered. Mayor Harpstead ran through the traffic flow with Councilmember Holmes stating he was in favor of the new proposed roadway but did not want it to affect the property values. Ms. Kvilvang noted after reviewing this with Ryan Construction they indicated they would stay with the 1,750 units of residential homes at this time, but would like to adjust the commercial space to 2.7 million square feet from the proposed 2.2 million square feet. Councilmember McClung stated he would like to see this mapped out to see the visual difference in commercial density before this was approved.