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4.0 Redevelopment Process 4.1 with the deteriorationofr the building, the City requested redevelopment proposals for r the 14-acre Arona site in 1994. The five proposals submitted included nixed levels o f housing development and a proposal for a fitness center. The Council narrowed the selection to two housing Proposals but no action was taken since there was no other location for the Parks & creation 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. Subsequenfly the activity center building was demolished in December of 2000 since the building was dire need of major repairs. 4.3 Also, in the fall of 000, the City initiated a neighborhood master piannO g process which resulted in the Arona- Hmmline Master Flan. 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 M16X of housing with a small neighborhood park. A final Master Flan was approved in March of 2002. 4.4 In June 2002 the City once again requested redevelopment proposals for the site backed by the principles in the Arona- Harnline Master Plan. Through a series of review of 10 proposals submitted, the Council chose United Properties as the developer of the site. 5.0 Future Use of TIF Proceeds from Applewood Pointe Development 5.1 with the sale of the Property to United Properties and the development of an estimated o million plus rimed housing project the district will now begin to generate new tax revenue* The new tax revenue will begin to accrue as past of the TIF District # 12 beginning no earlier than 2005 and at fell capacity m' 006 -07 depending upon when Phase 111's built. It is estimated that the project will generate $200,000 in tax increment annually for 10 years. 5.2 The City has \will incurred over 1 million in costs associated with the Arona Development due to demolition, pending, Terrace give constraction, surrey, etc. These costs, many of which were paid from the Hous g Fund, will need to be reimbursed from the proceeds of the sale to United or futare TIF. It is assumed that the stone water pending costs will he uai from the storm water fund (estimated over $600,000). if the council chooses not to use the storm water fund for that purpose and the land proceeds from the sale need to pay for the ponding TIC' revenue will likely be needed to recover the storm grater pending casts. (Attached Spreadsheet of estimated costs as Exhibit f# .3). 6.0 HRA use of Tax Increment Funds from TIF District Igo. 12 6,1 On July 15, by motion the HRA requested the Roseville City Council to allocate a percentage ofTIF District Igo. 12 revenue to the H A. The HRA would use the TIF proceeds to recapture its investment in the development of the affordable single family y horn es and for eligible housing prog m Purposes. However, the TI.F proceeds idenfified will not provide the EIRA with operating revenue needed for 2004 and 200 5. Therefore, an ERA Levy is requested beginning in 2004. 6.2 Jim Casserly was asked to prepare a summary of haw the City ma y funds nds the 1A which is identified in the attached memo as Exhibit #4, RCA TE' District #12 (080403) - Page 4 o f 5