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) / 3.3 Ramsey County would commit to providing a $250,000 low interest loan from the business assistance fund to write down the cost of the land purchase for the child care facility. (refer to attached letter). This loan would be a long term (15-20 years) at a lower interest rate (prime or 2pts. below prime) and can be structured to meet the initial cash flow needs of the business. 3.4 In addition, the City is suggesting that any additional gap, estimated between $220,000 - $400,000 depending on actual costs, be provided to the senior housing development as a long term loan. The City would work with the developer to structure the loan to meet initial cash flow needs. Staff is reviewing a deferred and very low to no interest rate term schedule with the development team. Money for the loan could come from the City's Housing Fund which is consistent with the Roseville Housing Improvement Plan. 3.5 Other assistance may include a tax abatement of the City's portion of taxes generated by the new development. Tax abatements are allowed for such uses at a maximum of 10 years. Staff has estimated that a $163,000 - $200,000 in new taxes would be generated by the development and the City could provide $24,000 - $30,000 in tax abatements for 10 years. Roseville's City attorney is in the process of reviewing the viability for use of abatements on this project. 3.6 The staff will continue to investigate other sources of financial incentives. 4.0 STAFF RECCOMENDATION 4.1 This proposal is consistent with the James Addition's recommendations for the site and with a reconfiguration of the access road staff believes that the development would provide a reduced traffic impacts to the neighborhood by 50 percent of more. The proposed uses have low volumes of traffic with the exception of the daycare where traffic comes and goes relatively at the same time (early morning and late afternoon). By reconfiguring the access road, traffic will be directed away from Fry Street and the City can gain needed additional parking for Rosebrook Park with a shared parking arrangement. 4.2 The public investment of $350,000 - $550,000 is a 20 to one private to public investment ratio. The public investment could be recouped within 3-5 years or less based on increases in City, School and County property taxes. 5.0 SUGGESTED COUNCIL ACTION 5.1 By motion, authorize the City Manager and City Attorney to prepare a development agreement with Sunrise Senior Housing and the Schoening Group to close the gap of $350,000 - $500,000 using a variety of funding sources as outlined in section 3 and the attached term sheet with final agreements to be approved by Council. RCA]F3159 Sunrise 1122.99 Page 2 of 3