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DATE: 07/21/03 <br />ITEM : M. A. <br />Department Approval: Manager Approved. Agenda Section: <br />DPW /CB PIE ENT'ATION <br />Item Description, Presbyterian Homes' Hamline Shopping C e77 Project: TIF Di seuss ion and <br />Direction (P.F.342 1) <br />1.0 BACKGROUND: <br />1.1 Presbyterian Homes and Senior Housing Partners LLC has submitted a request for Tax Increment <br />Financing (T ') for the Mainline Shopping Center. The request by the applicant is to use TIF to <br />assist the remaining 20 to 24 business tenants to more from the shopping center to be razed. The <br />new $14 million structure is a 92 unit (226,600 s. f) senior market rate housing project with 14,000 <br />s. r, , of retail space on the first floor. The project is being prepared for final City Council PUD and <br />land use approvals. <br />1.2 The estimated cost of the relocation is approximately 1,050}000, plus 5% to % annual interest <br />on the unpaid valance of the pay- as,-go TIF note. <br />1.3 A new pay -as- you -go TIF district is proposed that would he in place for I I years, collecting <br />increment for the last 9 years. <br />The new building and project would increase the taxes on this site by over 4 tunes what is <br />generated by the shopping center. <br />1.5 The new district would generate approximately $155,500 in net new taxes per year. <br />2.0 SUUGESTED COUNCIL ACTIONS: <br />On July 21, 2003, hear a presentation by Presbyterian Homes (Dan Lindh and Bob Van Slyke) and <br />provide direction.. (The Council policy is for staff` to complete reviews only after the Council has <br />provided direction.) <br />If the Council is interested in supporting this project further, the following actions are appropriate: <br />2.1 Direct the staff and development attorney Jim Casserly to prepare a Tax Increment <br />Memorandum of Understanding (1 OIJ) — the foundation principles by which the new TIF <br />District and the project will have to adhere; and to determine feasibility under current TIF <br />laws. <br />2.2 Determine whether the Council will use a pay -as -go TIF district. <br />2.3 Determine whether the City or the HRA should be the administrator of this district. <br />Report by: Dennis Welsch, Community Development Director, (651-490-2232. <br />Attacht nts: Presbyterian Homes /Senior partners Background. Preliminary Proforma, and TCF Applications <br />AVietoria \CommDevTlanning Files\3400 3449 3421 _Prey Hames\P0421 RCA TIP Direction (072103 ),dac <br />