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AR—DEN. HILLS CITY COUNCIL—May 10, 2010 10 7.C. Sand Companies, Inc. Request for a Letter of Support for Housing Tax Credits with the Minnesota Housing Finance Agency for up to $575,000 in Public Assistance as Proposed in the May 10, 2010, Memorandum (continued) Councilmember Grant stated it is difficult to approve a figure of$540,000 as a good faith TIF amount if this is not what the City is intending to do. Finance Director Iverson stated the but/for analysis does not show that the project needs more than a 15-year TIF commitment. Mayor Harpstead stated he was in favor of the last proposal and encouraged the City to move forward with some form of multi-family housing specifically targeted at work force. The proposal had been clear and clean but this proposal seems to have gotten cloudy. He clarified the City had not rescinded their last letter of support. He recommended the Council table this item and ask Staff to come back with clarity on the questions presented. Councilmember Holmes stated she would agree with tabling this request for additional information and clarification. She stated she has several issues with this request and the original letter of support. The City is not able to fill the gap between the TIF amount and the original $400,000 the City agreed to support. She was unaware the City would be expected to fill the gap between the amount of TIF and the amount of support that was offered. i Councilmember Holden asked what numbers would need to come back if this proposal were tabled at this time. SCI would like to get $575,000 in support in order to get the additional points and the City can only support $184,000 with TER Mayor Harpstead stated new numbers may not be needed but the portion pertaining to the tower needs to be clarified and it needs to be explicate that SCI is looking for more support that TIF can justify with a proposal on how to accomplish filling this gap. Councilmember McClung stated he would be out of town for the May 24 Council meeting. Councilmember Holden asked how much public safety cost would be used by this project. She was having a hard time supporting this project when the cost break down was $190,000 per unit. There were families in the City that are having a hard time supporting their $190,000 homes and now the City is going to ask them to subsidize public safety for this project. Mayor Harpstead stated the amount proposed is a reasonable amount for a quality building that is sustainable and will last. MOTION: Councilmember Grant moved and Mayor Harpstead seconded a motion to Table Sand Companies, Inc. Request for a Letter of Support for HousinLy Tax Credits with the Minnesota Housing Finance Agency for up to $575,000 in Public Assistance as Proposed in the May 10 2010 Memorandum. The motion carried (4-1).