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ARDEN HILLS CITY COUNCIL—May 11, 2009 10 Councilmember Grant stated that since the Lindy's triangle is part City and part County right-of-way it will probably not be used for anything else. It was the consensus of the Council to set the number of REUs for the assessment at 90 units. Councilmember Holden requested to discuss the length of payment next. She recommended the City set the length of payment at ten years. Councilmember Holmes suggested a payment length of fifteen years. This would allow the residents an option to spread the payments out over time. Councilmember Grant stated that he would suggest ten years because over a fifteen year period the City is exposed to a certain amount of interest rate risk. Over a ten year period there is less risk with variability. Councilmember McClung stated that he could go with either ten or fifteen years but this decision would influence his decision on the interest rate. If the payment length is set at fifteen years then he would recommend the higher interest rate of 5.25%, which is the prime rate, plus 2% versus the 4.8%. Mayor Harpstead stated that he would support the recommended ten years. Councilmember Grant stated that just because the Council extended the payment cycle with the last project does not set the precedent that they need to extend the payment length for all of the City's projects. Ten years is sufficient time and this was set by the Assessment Task Force. It was the consensus of the Council to set the length of payment at ten years. Councilmember Holden recommended that since the length of payment is set at ten years then the interest rate should be set at 4.8%, which is the current annualized rate of return, plus 2%. Mayor Harpstead stated that he would support a 4.8% interest rate. Councilmember Grant stated that he would support a 4.8% interest rate. It was the consensus of the Council to set the interest rate at 4.8%, which is the current annualized rate of return, plus 2%.