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ARDEN HILLS CITY COUNCIL WORK SESSION SEPTEMBER 13, 2010 4 A. Review and Discuss Presbyterian Homes and Library Proposal (continued) Mayor Harpstead explained he wanted to see the City involved in activities that would grow and develop the tax base. This redevelopment was a meaningful opportunity for a significant business in the community located on Lake Johanna. Councilmember Holden expressed concern about there being too much TIF in the City. She may be willing to approve TIF for 10 years, but not for 16. Mayor Harpstead questioned if the City had a limit on TIF at this time. Ms. Kvilvang, Ehlers and Associates, stated the City did not have a policy to limit TIF. She explained the City was just under 4% of captured value compared to total City tax capacity and if Presbyterian Homes were added, the City would be just under 5 City Administrator Klaers reviewed several neighboring communities' use of TIF stating that New Brighton was around 20 He felt that 4 -5% was low, but understood the City was conservative with TIF. Councilmember Holden indicated the comments she has received from residents are requesting the library remain in its current location and that the money be put into upgrades to that building. City Administrator Klaers stated it was his understanding that the operating costs on that building would still be much higher than a newer facility. The County Board was looking for partners to reduce operating expenses. Councilmember Grant stated a library up on the TCAAP site would make a lot of sense with the number of new houses on that site. He felt that the decision was being rushed and that the long term implications would greatly affect the City. Mayor Harpstead commented that the Library Board has been trying to close the Arden Hills site for more than four years. This was not a new request, as operating costs have been reduced and hours have been cut. He stated the TCAAP site may be a viable site for a library, but this would be an altogether new expense for the Library Board. Councilmember Grant questioned when the library in Arden Hills would be closing. Mayor Harpstead understood the library was not funded past December of 2010. No new budget money has been allocated to the library going forward, but the County Board could vote to make a change. Councilmember Holmes stated the New Brighton plan did have parking issues. Councilmember Holden questioned the goal of this discussion. Mayor Harpstead indicated staff needs to make a statement on Wednesday on behalf of Council. That would require the Council to reach some form of consensus.