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AR—DEN HILLS CITY COUNCIL—May 10, 2010 7 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 Holden stated the value for TIF is $184,000 and the value for the tower is estimated at $175,000 for a total of$359,000. She asked how the amount of$575,000 for public support was reached. City Planner Beekman clarified the City is not obligating itself to any amount for public support. She also stated that the tower has not been valued at $175,000. This is the figure that the City has been using for conversation purposes. SCI is looking at alternative funding sources. Ramsey County is a promising funding source and this is something they would need to financially work out with the City and other funding and revenue sources. The City is not obligated to $575,000 minus the value of the tower. Ultimately this would be negotiated with SCI. How the TIF would work out is also something that will need to be looked at, in terms of the length of the TIF and other options such as reduced fees. Councilmember Holden noted the memo stated that SCI would sell the tower to the City for $1.00. Since SCI is not a non-profit there will be tax implications. She asked how this would be factored into the amount the SCI is requesting. City Planner Beekman stated this would be factored into the TIF analysis. Councilmember Grant asked how much additional stone was being added to the building to justify the increased amount SCI is requesting. Mr. Jamie Thelen, CEO Sand Companies, Inc., explained the Council had wanted the facility to resemble the one located in Maple Grove and this did increase the amount of stone from the original proposal. The additional amount being requested also includes the construction for the additional fencing being requested by the Council. He clarified that he did not have the exact figures at this time. But it was not a significant number. Councilmember Grant asked City Planner Beekman to explain what was meant by a higher point allotment for the MHFA application. City Planner Beekman explained applications received by MHFA were valued on a point system for each of the criteria or line items they evaluate. The more criteria they meet the higher the point value and the more likely the project will be approved, similar to a grant process. The higher the amount the City has stated they are willing to support; the higher the point value on the application. Councilmember Grant clarified that he did not want to see the amount of the TIF be raised just to increase SCI's application score. He asked if the application deadline was June 15 why the Council was being asked to approve this request at this time. The Council did not have all the figures they needed to make a decision, such as the appraisal amount for the tower. The Financial