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Tax Increment Financin� Req uest In addition to the housing tax credits application to the MHFA, SCI is requesting up to $400,000 in public assistance through tax increment financing (TIF) to help make this project affordable. The letter of support provided by the City for the tax credit application specifically notes that $400,000 is the maximum amount of support the City would be willing to provide. However, it does not mean that the City is obligated to provide $400,000 in support. As part of the City's public subsidy application, the City's financial consultant will review all sources of financing and project expenses to determine if TIF is needed for the project. This proposal is somewhat unique due to the antenna tower that would also be owned by the applicant. Since there is an income stream associated with the antennas on the tower, the financial review can evaluate any current or future income associated with the tower. In the end, if there is a demonstrated need for TIF and if the project passes the "but for" test, the City can then determine if TIF is needed and how much will be awarded. Given the complex nature of the land use requests, the applicant has not yet submitted the business subsidy application for the TIF review. The application and review process can be intensive, and the applicant is seeking review of the land use requests before going through the public financing review. While the applicant has indicated that the housing tax credits and TIF are needed to make the project economically feasible, the land use requests are technically not contingent upon the financing requests. If, for example, the applicant were able to locate other sources of funding, the project could move forward without public financing. Antenna Tower Update As discussed at the February 22, 2010, City Council work session, the antenna tower is currently not in compliance with the original conditional use permit (CUP) from 1972 because the number of antennas on the tower exceeds what was allowed in the CUP. For the purposes of the Arden Village proposal, only the legal description in the 1972 CUP needs to be amended to recognize the change in property legal description related to the subdivision request. The City has selected an engineer to evaluate the structural soundness of the tower as well as the antenna capacity of the tower. The structural analysis has been completed. The current property owner, the Reiling Estate, has submitted a land use request to allow the additional antennas on the tower. The City Council reviewed this request at the February 22, 2010, meet and tabled it to the March 15 work session. Ultimately, for the Arden Village project to move forward, the tower will need to be brought into compliance with the original 1972 CUP, or the property owner will need to work with the City to negotiate a solution and amend the CUP to change the antenna limit. City of Arden Hills City Council Meeting for March 8, 2010 \�tVletro-inet. us�ardenhills�Admin\Council�Agendas & Packet Information�2010�3-8-10 Regular�Packet Information\6A 03-08-10 - Regular Meeting - Arden Village - Memo.doc Page 5 of 10