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ARDEN HILLS CITY COUNCIL—May 10, 2010 8 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) Planning and Analysis Committee has not made a recommendation to the Council at this time regarding the tower. This recommendation would enable the City to determine an appropriate amount of TIF for the project. City Planner Beekman stated the June 15 deadline is when SCI must have their application submitted. The letter of support they are requesting from the City is a piece of this application and they would like to have it in order to use these figures for their Performa and finalize the application and get it submitted on time. The City could also discuss this proposal at their May 24 meeting if additional information or research is required. FPAC did look at the proposal and does recommend approval of the letter of support. The TIF discussion is ongoing and will not be determined until after the June 15 deadline. FPAC had looked at the basic financials and the letter of support and felt they could make a recommendation for approval of the letter of support and moving forward with this since it does not obligate the City to any financing. Councilmember Grant asked at what point FPAC will bring a recommendation back to the Council regarding the tower. Finance Director Iverson stated FPAC did not make any recommendations, rather they stated this request appears to be an appropriate amount of gap financing for this type of project. FPAC has received the leases for the tower but they are still waiting for the appraisal of the tower. FPAC has not had all the information they need to do a complete analysis on the tower. The leases were just received and FPAC has not had time to evaluate these yet. The next meeting for FPAC is June 8 Councilmember Holden asked for clarification on why the amount of the request was increased if the amount of stone added to the building and the additional fencing were minimal City Planner Beekman stated the amount of the request was increased largely due to the proposed purchase of the tower and the amount that the City has used in reference to the tower is $17500. If the City decided to purchase the tower and if the City paid $175,000 for it, then that amount would be rolled into the public financing package. Because of this, the amount was increased from $400,000 to $575,000. Councilmember Holden asked where the break was for gaining the additional points for the funding amount. Mr. Thelen clarified SCI would gain two additional points if the City supports the $575,000 and the point at which these points would be received is close to $575,000. Mayor Harpstead asked if the only changes in the letter being presented at this time and the previous letter that was approved are the date and the dollar amount of support. He asked if there were any other changes in the letter.