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Ita.— <br />,,.--ARZEN HILLS <br />MEMORANDUM <br />DATE: December 9, 2009 PC Agenda Item 3.A <br />TO: Planning Commission <br />FROM: James Lehnhoff, Community Development Director <br />Sue Iverson, Finance Director <br />SUBJECT: Tax Increment District No. 3 Plan Modification (Cottage Villas) <br />ATTACHMENTS: <br />Requested Action <br />Consider approval of Resolution 2009-001 finding that a modification to the development <br />program for Development District No. 1 and a modification to the Tax Increment <br />Financing Plan for Tax Increment Financing District No. 3 conform to the <br />Comprehensive Plan for the development and redevelopment of the City. <br />Backiround <br />In 1993, the City of Arden Hills approved Tax Increment Finance (TIF) District No. 3 to <br />facilitate the development of Cottage Villas, which is a 60 unit apartment building for low to <br />moderate income seniors at 3744 Cleveland Avenue. The building was completed in 1994. <br />Along with federal housing tax credits, the TIF District was a primary component in financing <br />the project to create the affordable units. For the basics of TIF, please see the below section and <br />attachment B. <br />Under State Statute, a housing TIF District can be up to 25 years in length. However, the City <br />originally limited the Cottage Villas TIF District to 15 years because it was determined that the <br />financial contribution to Cottage Villas would be paid off within that time. The 15 year period is <br />completed in December 2009, and the City's contribution to Cottage Villas will have been <br />satisfied. <br />City of Arden Hills <br />Planning Commission Meeting for December 9, 2009 <br />\\Metro-inet.us\ardenhills\Planning\Economic Development\Business Subsidy & Public Financing\TIF\Cottage Villas\12-09-09 - PC Report - <br />Cottage Villas TIF Extension Memo.doc Page 1 of 4 <br />