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4.0 Redevelopment Pros With the deteriorationof the building, the City bested redevelopment ro osals for � p the 14 -acre Arona site in 1 994. The five proposals submitted included mixed levels of housing development and a proposal for a fitness center. The Council narrowed the selection to two housing proposals but no actionwas taken since there was no ether location for the Parks & Recreation offices and activities at that time 4.2 The City entered into an agreement with the School District to locate the Parks and Recreation office at the Fairview Community Center in the fall of 2000. Subsequently the activity center building was demolished in December of 2000 since the building was Aire need of major repair. 4.3 Also, in the fall of 2000, the City initiated a neighborhood master planning process which resulted in the Arona-Hamline Master Plan. Many residents had a strong interest in using the site as a park and/or community center. Since the City purchased the property with the intent to redevelop and recoup its costs the master plan included a mix of housing with a small neighborhood park. A final Master Plan was approved in March of 2802. 4.4 In June 2002 the City once again requested redevelopment proposals for the site backed by the principles in the Arona- Hamline Master Plan. Through a series of review of 10 proposals submitted, the Council chose United Properties a the developer of the site. 5.0 Future Use of TGIF Proceeds from Applewood Pointe Development 5.1 with the sale of the property to United Properties and the development of are estimated $o million plus mixed housing project, the district will now begin to generate new tax revenue. The new tax revenue will begin to accrue as part of the TIF District # 1 beginning no earlier than 2005 and at full cap acity in 2006-07 dep ending upon when Phase 11 is built. It 1s estimated that the project will generate $200,000 in tax increment amually for 10 years. 5.2 The City haslwill incurred over $1 million in costs associated with the Arona Development due to demolition, ponding, Terrace Drive construction, surrey, etc. These costs, many of which were paid from the Housing Fund, will need to be reimbursed from the proceeds of the sale to United or future TIF. It is assumed that the storm. water ponding costs will be vald from the storm water lurid (estimated over $600,,000). If the council chooses not to use the stone water fund for that purpw and the land proceeds from the sale need to Fay for the' ponding revenue will likely be needed to recover the storm grater ponding costs. (Attached Spreadsheet of estimated costs as Exhibit #3). 6.0 IRA use of Tax Increment Funds from TIF District Ida. 12 6.1 on July 15, by emotion the FRA requested the Roseville City Council to allocate a percentage of DistrictNo. 12-revenue to the HRA. The HRA would use the TIF proceeds to recapture its invent in the development of the affordable single family homes and for eligible housing program purposes. However, the TIF proceeds identified will not provide the HRA with operating revenue needed for 2004 and 2005. Therefore, an FIRA Levy is requested beginning in 2004. 6.2 Jim Casserly was asked to prepare a summary of how the City may transfer funds the HRA which is identified in the attached memo as Exhibit A. RCA Tom' District #12 (080403 ) - Page 4 v f 5