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a. Moreover, large amounts of TIF to help redevelop Twin Lakes will reduce the amount of TIF or other types of financial assistance the City could provide for other projects. In other words, there is an opportunity cost incurred in dedicating so much TIF to one proj ect: The opportunity cost is that there is less (or no) TIF available for other redevelopment projects in the City. b. Traditionally, the City has followed a pay-as-you-go approach to TIF that minimizes the City's risk. Here, TIF bonds (rather than TIF pay-as-you-go agreements or revenue notes) are sought for this Project. Bonds increase the City's risk that there will be a default and the City will be bound, legally or morally, to help payoff Project bonds. c. Using 25-year TIF financing for this Project means that for 25 years Roseville city government will see the same but no greater amount of Twin Lakes' tax revenue coming into the City's general fund. Twenty-five years is too long to wait for a "return" on our substantial TIF "investment" in this project, especially for a project that includes a significant amount of retail. Retail development in Roseville, whether on a brownfield or greeenfield, ought to finance itself and should not receive any taxpayer assistance much less the large amount of assistance/subsidy that is being discussed here. d. The ratio of public to private investment in this Project is too high. This Project is estimated to require $50 million in various forms of City assistance over the life of the Project, mostly in the form of TIF -backed bonds. Yet the private developers are only investing roughly $150 million. A ratio of 1 to 3 in public to private investment is too small; it should be closer to 1 to 10. 2. Yes, redeveloping Twin Lakes is affordable. Though this is a large project by Roseville standards, the City can safely afford this project by using a combination of TIF and other financial strategies. a. Excluding some of the more controversial Gap Strategies - namely, spreading fiscal disparities citywide and using city general obligation bond financing for this Project- and then taking the midpoint of the range of money that can be generated using the remaining Gap Strategies, we are close to having a feasible, financially balanced Project. The numbers follow: Financial Gap Is Approximately $26 Million i. Gap Strategy 1: Twin Lakes Parkway ii. Gap Strategy 2: Special Assessments iii. Gap Strategy 3: Contingencies iv. Gap Strategy 4: Administrative Fees v. Gap Strategy 5: Off-Site Improvements $2.25 million $2 $3 $1.4 $1.2 7