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City of Roseville, Minnesota TIF District No. 17: Twin Lakes Apartment LLC Proposed Project October 16, 2012 Page 2 • First increment collection in 2006 • Final increment collection in 2031 o Assuming full 25+ years • Frozen tax rate of 102.078% o As provided by Ramsey County o Constant during remaining term of TIF District When considering future redevelopment projects that occur within the existing TIF District No. 17, the City will need to verify that the projects would qualify as eligible projects within the redevelopment district and that there is sufficient budget authority to use tax increment dollars to finance the identified project costs. Because this proposed project includes the retlevelopment of certain properties within the TIF District, and tax increment revenues are proposed to be used to clean up the project site and further the redevelopment objectives of the city and TIF District, it would be a qualifying project within the district. In adtlition, the proposed project costs, as further described, would be within the existing budget authority of the TIF Plan for TIF District No. 17. Developer Request for Tax Increment Financing Assistance The developer, Twin Lakes Apartment LLC, submitted a request for TIF assistance with the purpose of TIF to finance extraordinary costs associated with redeveloping the project site and subsequently constructing the proposed project. The developer has requested tax increment assistance for financing a portion of the costs associated with construction of the project. City staff, Springsted and the developer have met to discuss the preliminary project review. From those discussions the developer has adjusted some of the initial cost assumptions and the updated TIF eligible cost amount is $3,780,000 which includes structured (underground) parking, infrastructure, roads and utilities, environmental/engineering and site preparation/drainage. The updated total estimated sources and uses of funds are equal to $32,642,000. Based on the developer's application and total estimated project costs, the City could consider tax increment assistance for financing of the following extraordinary project costs (not including acquisition) associated with the redevelopment project: Pro'ect Costs Estimated Amount Infrastructure, Roads & Utilities $250,000 Environmental/En ineerin $290,000 Site Pre aration/draina e $140,000 Structured Parkin $3,100,000 Total $3,780,000 There are generally two ways in which assistance can be provided for most projects, either upfront or on a pay-as- you-go basis. With upfront financing, the City would finance a portion of the developer's initial project costs through the issuance of bonds or as an internal loan. Future tax increment would be collected by the City and used to pay