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City Manager's Recommendations Regarding City Use of the Proceeds from the Arona Project and the Amount of an HRA Tax Leery Pointe project on the Arona site would open the Council to criticism. The underlying purpose of TIF districts is to help pay for costs associated with development within that district. That's one reason TIF districts have boundaries. Though it is apparently legal to spend this TIF increment outside the Arona TIF district under the state laws that existed when the Arona TIF District was created, state TIF laws and TIF policies have changed since then. Current TIF laws heavily restrict the use of TIF proceeds outside the TIF district that generates this money. To spend the Arona TIF pro- ceeds outside the Arona district for purposes unrelated to the Applewood Pointe project would, in my opinion, create public and legislative criti- cism of Roseville's TIF program d We don't need more criticism of the city's use of TIF} Therefore, I rec- ommend using Arona TIF proceeds to cover the City's portion of the Arona development costs. Arona Workforce Housing. Importantly, if there is sufficient TIF incre- ment remaining after all City development costs are paid, then I recom- mend the remaining Arona TIF increment be used to assist in creating workforce housing at the Arona site. The HRA is taking measures to ensure that the Arona project meets and exceeds city expectations. The HRA has approved the purchase and de- velopment of five single family homes in Arona. The HRA's goal is to tar- get first -time home buyers who are core service providers within our community - to begin with, police officers, firefighters, and school teach- ers. Cinder this HRA program, and with the city's finan6 i support, these persons who work in Roseville who deliver critically important services to our community -- but who otherwise would not be able to afford Roseville housing -- could buy a home at Arona. That will increase the young fam- ily population in our aging city. That will enhance our ability to provide these core community services. That will improve our environment, as persons who work in Roseville could now live in Roseville. Living where they work also improves resident productivity and efficiency. Moreover, upon sale of these Arona homes the proceeds would cycle back to the HRA to support even more Roseville workforce housing. And so on and so on. RIA