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4 *0 Redevelopment Process 4.1 with the deteriorationof the building, the City requested proposals redevelopment for � the 14 -acre Arona site in 1994. The five proposals submitted included wed levels of 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 & 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 Decetnber of Zoo Q since the building was dire need of major repairs. 4.3 Also in the fall of 2000, the City initiated a neighborhood master planning process which resulted in the Arona- Hamline Master Plan. Manny 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 rr ix of housing with a small neighborhood parr. A final Master Plan was approved in //March of 2002. 44 In June 2002 the City once again requested redevelopment proposals for the site backed by the principles in the Arona- Hamline Faster 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 TIC` Proceeds from A.pplewood Pointe Development 5.1 With the sale of the proper to Unhed properties and the development of an estimated o million plus nixed 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 #12 beglnn ,g no earlier than 2005 and at full capacity in 2006 -07 depending upon when Phase ll is built. It is estimated that the project will generate $200,000 in tax increment annually for 10 years O 5.2 The City haskwill incurred over 1 million in costs associated with the Arona Development due to demolition, ponding, Terrace Drive constraction, survey, etc. These costs, many of which were paid from the Housing Fund, will need to be reimbursed from the proceeds of the sale to Ignited or future TIE It is assumed that the storm water ponding costs will be paid from the storm water fand (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 TIF revenue will likely be needed to recover the storm water ponding costs. (Attached Spreadsheet of estimated costs as Exhibit ##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 of TIF District No. 12 revenue to the HRA. The HRA would use the TIF proceeds to recapture its investment in the development of the affordable single family homes and for eligible housing program purposes. However, the TIF proceeds identified will not provide the EORA with operating revenue needed for 2004 and 200 5. Therefore, an EORA Levy is requested beginning in 2004. 6.2 Jinn Casserly was asked to prepare a summary of how the City may transfer funds the CI A which is identified in the attached memo as Exhibit A. RCA TIF Distrkt 1 (08040,3)- Page 4 of 5