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ARDEN HILLS CITY COUNCIL—September 14, 2009 15 7E. Arden Village Letter of Support(continued) how long. She asked if there were any guarantees that Sand Companies could provide for the City. Mr. Thelen stated that the program that they are applying for makes a sale difficult and the flipping of the property would be extremely difficult due to the strict restrictions. Sand Companies has not sold any of the properties they have. Councilmember Holden asked what percentage of the cost Sand Companies was putting into the project. Mr. Thelen stated that the Council was provided with a sources and uses of funds list. Some of the funds are from limited equity and this is cash equity that Sand Companies puts into the project. Councilmember Holden asked if there would be any funds coming out of pocket for Sand Companies and if Sand Companies would be getting revenue for managing the property. Mr. Thelen stated that Sand Companies would be receiving revenue for managing the property and the funds coming out of pocket would be from the equity. Community Development Director Lehnhoff stated that the sources of funds listed by Sands Companies were first mortgage of $1.95 million, $7.2 million in equity, $1.65 million in deferred loans, and if TIF is approved by the City this would be $400,000. - Councilmember Grant asked Finance Director Iverson what the annual amount from the Cottage Villas TIF would be if it were extended. Finance Director Iverson stated that that it was about $50,000. The TIF would produce about $545,000 if they choose to extend it Councilmember Grant stated that he had anticipated using the TIF for senior housing on the old City Hall property or perhaps some uses in the County Road E area. Finance Director Iverson stated that she had checked with the financial advisor and she will bring this to the Council in October. The City can have some proposed uses but the City does not need to have a specified plan in order to extend the district.