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An argument could be made that these monies should only be used for the original intended purpose, and any other use would nullify the `abut for" reasoning for creating the District in the first place. One could also make the argument that circumstances have changed, and the City has greater needs elsewhere. The Council is advised to consider this decision carefully. The use of tax increment proceeds are typically among the most closely watched expenditures a municipality makes. In addition to interested citizens, close scrutiny is given by both the State Auditor and Attorney General. With respect to the potential uses, it is estimated that future development will generate approximately $200,000 in increment per annum from 2005-2015, or a total of million. The use of these monies are restricted to; demolition, public infrastructure, parr facilities, and housing. It is suggested that the Council prioritize these uses both within the Arona site and within the City as a whole, before determining where the monies should be spent. Potential Use of Land Sale Proceeds In contrast to the future tax increment revenue, the monies derived from the sale of City -owned land at the Arona site is free and clear of any obligations. The monies may be used for any lawful purpose. when considering the potential uses, it is suggested that the Council consider the 1) original intent of purchasing the property, ) the one -tune nature of these monies, 3) the overall needs of the City, and 4) where the greatest value can be obtained. The Arona site was purchased by the City after the original development proposal fell through. The monies to purchase the site carne from the City's Community Development Fund (which includes economic development and housing activities), for the purpose of capitalizing on future development opportunities on the site. In addition to the Arona site, their remains a long list of potential uses all with varying rewards. A list of potential uses was created for the 8104/03 Council Meeting, and is included in Attachment B. It is difficult to provide guidance on how best to use these proceeds. Although management tools and decision tree models exist, determining the "best" use ultimately comes down to value judgments. It is suggested that the Council begin by considering its core values and community goals. The most recent City Council goal-setting ession took lace ® early 2002. At that time sip (6) g p y � high- priority objectives were identified and include: ❑ Decide ghat to propose for a community center, and bring it to the citizens for a vote. ❑ resolve the public safety function, structure, and facilities. ❑ Complete the planning process for the krona site, and facilitate construction. ❑ Address the unique service issues and housing needs of our aging population. ❑ Define how the City can/wants to achieve developing affordable housing. ❑ Devise the City's special assessment policies. Whether these objectives remain a high - priority is something for the Council to consider. 4 As was suggested above, an anent could be made that circumstances have changed, as has the needs of the City.