7E, Arden Village Letter of Support Request

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".0 t ,,�ARZEN HILLS CITY OF ARDEN HILLS MEMORANDUM DATE: September 4, 2009 TO: Mayor and City Council FROM: James Lehnhoff, Community Development Director SUBJECT: Arden Village — Business Subsidy Policy On August 17, 2009, Sand Companies Inc. (SCI) presented a concept for a 55 unit affordable housing project, Arden Village, to the City Council. Since this project would be requesting Tax Increment Financing (TIF), it would be subject to review under the City's Business Subsidy policy that was adopted on December 8, 2008. The applicant, Sand Companies Inc. (SCI) has not submitted an official business subsidy application; therefore, a thorough TIF analysis is not yet possible. This memo lists the applicable sections from the Business Subsidy Policy and, where possible, it provides a brief analysis of how those sections pertain to the concept. To help guide the review, some information has been underlined to draw attention to parts that particularly relate to the project. It is important to note that the Business Subsidy Policy does not guarantee a path to an approved subsidy. Each project is evaluated on its own merits. The policy is a guideline for reviewing public subsidy requests in light of overall City goals, needs, and resources. Section 2: Public Purpose Requirement. The business subsidy policy requires a project to have a public purpose and benefit. Section 2.1 of the policy states: 2.1 - All business subsidies must meet a public purpose with measurable benefit to the City as a whole. Public purpose may include, but not be limited to, the creation of needed services or facilities not currently available, provide a variety of housing ownership alternatives and housing choices, redevelop and remove blight and encourage redevelopment in the commercial and industrial areas of the City in order to encourage high levels of property maintenance and private City of Arden Hills Arden Village — Preliminary Business Subsidy Policy Review Page 1 of 5