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Regular City Council Meeting Monday, February 9, 2015 Page 10 Mr. Sherman clarified that the portion of funding subject to loss would be the tax credits themselves if workforce housing fell below 50%. Mr. Sherman opined that MHFA and Metropolitan Council funding may continue if the affordable housing component remained as part of the project, but may be subject to either agency pro-rating their funding based on the number of overall units. If the af- fordable housing units were reduced to 20% as suggested by Councilmember McGehee, Mr. Sherman advised that would reduce the units from 80 as currently proposed to 40. Mr. Sherman noted that the purpose of tonight's discussion was to determine a comfort range from the City Council; with the developer's objec- tive to make a viable project, which they were willing to look into spreading units between both buildings and determine lender interest. At the request of Councilmember McGehee, Mr. Link clarified the size of the tot lot was estimated at 1,600 square feet, approximately 55' by 30'. In referencing tonight's meeting packet that had included the June City Council meeting minutes, Councilmember Laliberte questioned staff if construction costs and/or financing for extension of Twin Lakes Parkway would require funding for that extension from the capital improvement program (CIP) rather than covered by the developer as part of their project as previously presented. Community Development Director Bilotta clarified that the Metropolitan Coun- cil's grant award included money for extension of Twin Lakes Parkway but the developer was not basing their decision on whether or not the extension was done or not. If the Parkway extension did not ultimately go forward, Mr. Bilotta ad- vised that any excess funds would go back to the Metropolitan Council since competition for funding was extensive, and the scope of the project would be changed accordingly and funds reallocated to another area. Referencing the June RCA and original Sherman project as presented, Coun- cilmember Laliberte questioned how many of these project components needed tweaking and what had already been addressed legally as part of the TIF "but for" analysis. Mr. Bilotta reiterated that the formal TIF application had not yet been submitted by Sherman, but would be submitted as part of the underwriting process, includ- ing the "but for" test qualifications and initiated by Sherman Associates. If and when the formal TIF application is received, Mr. Bilotta advised that the City's Financial Consultant would review the application, using the "but for" test and provide findings for presentation to the City Council, and if the project proceeded, would be one of the next steps in the process,but had yet to occur. At e et Cmbte , Memtd pojt developmentthrquescostof to beounc$4ilme0 millionerEpltusn , orr.in Shexcessran oesf$200imate,000the pe unit rwhen