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ARDEN HILLS CITY COUNCIL—September 14, 2009 14 7E. Arden Village Letter of Support(continued) development fees is $181,660. While waiving all or a portion of the fees can be simpler than creating a new TIF district, Staff would be concerned about waiving or significantly reducing the fees because that represents a direct cost to the City for services that would still be provided. Without the fees, the costs would need to be absorbed elsewhere in the budget. Conversely, a new TIF district requires additional front-end footwork but the costs are supported by the project itself through property taxes. As with any TIF district, the new increment of property taxes would go to the development instead of being distributed out to the City, County, and School District. The deadline for the housing tax credit application is October 1, 2009. In order to meet that deadline, SCI would need a letter of support from the City by September 14, 2009 so that they can complete the other application requirements, including a housing market study that is specific to the property. It is important to note that a letter of support is not an approval of the project. The letter of support is a good faith commitment from the City to provide the requested support if the housing tax credits are approved by MHFA and if the project meets City requirements. The Council is not being requested to create or approve a TIF district tonight. A full review will be needed if the project moves forward. Mr. Jamie Thelen, CEO Sand Companies, Inc., reviewed some of the challenges that had been discussed at the work session including traffic, noise from Interstate 694, and access to transit. He stated that the benefits for this development in this location would be that it meets the principles of smart growth; the site is an infill - site so there are no extensions of water sewer or streets and utilities, it takes advantage of compact building, and it is near many jobs. The development will - help the City meet a number of its housing goals including housing diversity, affordability and quality. The City has an opportunity to use an existing TIF District and if they chose to do this they could begin to collect revenue on this property as soon as it is complete. This project is still a couple of years from construction and this may assist the City with budget constraints they may have at this time. Assistance from the City also opens up new funding sources for the project, especially from the MET Council. Mayor Harpstead asked if the presentation that Sand Companies had presented at the work session was on the website. Community Development Director Lehnhoff stated that it will be. Councilmember Holmes stated that the City prefers to have owner occupied rental properties. She asked if Sand Companies would manage the property and if so for