8A, Arden Village Workforce Housing

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Option 1: Not Purchasing the Towe� If the City does not purchase the communications tower, SCI is requesting up to $225,000 in assistance. Although the preliminary TIF analysis indicates that $201,000 would be generated, that is not a�nal number and it could change when the complete TIF review is completed in 2011. It is feasible that the �nal public subsidy from the City could vary from $225,000. For example, if the �nal TIF number is $201,000, the City would not be expected to pay the remaining $24,000. The City's �nancial consultant stated that the preliminary nature of the TIF number is not out of line with the $225,000 request. Option 2: Pur�chasin� the Tower If the City purchases the communications tower, SCI is requesting up to $575,000 in assistance. This subsidy could be funded through TIF, a waiver of fees, and/or a cash payment. If the TIF generates $201,000, the City would need to fund the $374,000 gap. The gap would essentially represent the price of the communications tower. If the City contributes $575,000 to the project, SCI will secure two additional points on their housing tax credit application and increase their chances of securing the tax credits. Selecting option two is not the final commitment to purchase the tower; however, it does send the City solidly in that direction and the City should be prepared to take ownership of the tower. The City would still need to negotiate the value and payment terms of the tower. Once the TIF analysis is completed in 2011, the City would then know the �nal "price" of the tower. The City would be expected to �11 the gap between the TIF and the final negotiated public subsidy amount. At the end of the third paragraph in the letter of support, a new line was added regarding the City's park dedication fee and SAC/W�C fees (it is underlined for your convenience). It is true that the City is not collecting the park dedication fee; however, SCI is constructing a nearly 1,700 foot long sidewalk along County Road to connect the property to the trail on Lexington Avenue. The estimated cost of the sidewalk is more than the park dedication fee, and it has already been approved as part of the land use approvals. After discussing the housing tax credit application with SCI, staff is supportive of SCI's request for a total fee waiver of $2,000 from the City's sewer access charge (SAC) and water access change (WAC). This is a new request from the previous letter of support. The total SAC/WAC fee is estimated at $148,000, of which $115,500 is paid to the Metropolitan Council for sewer access. The $2,000 request is a relatively minimal waiver for gaining another point on the tax credit application. Attachment Proposed Letter of Support City of Arden Hills City Council Meeting for June 14, 2010 IlMetro-inet.uslardenhillslPlanninglCommunity DevelopmentlHousinglAffordable HousinglArden Village - Sand Companies1061410 - CC Memo - Arden Village - Sand Companies.doc Page 4 of 4