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4,0 Redevelopment Process 4.1 with the deterioration of the building, the City requested redevelopment proposals for the 14-acre Arona site in 1994. 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 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 Parrs 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 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- Hatnline 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 roaster plan included a mix of housing with a small neighborhood parr. A final Master Plan was approved in March o f 002 . 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 0 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 #12 beginning no earlier than 2005 and at full capacity in 2006 -07 depending upon when Phase Il is 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, ponding, Terrace Drive construction} 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 United or future TIF. It is assumed that the storm water ponding costs will be 12ai.d from the storm water fund (estimated over $600,000). If the council chooses not to use the storm water fwd 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 pondm' g costs. (Attached Spreadsheet of estimated costs as Exhibit ##3). RCA TIF District # 12 (0$0403) - Page 4 of 5