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Regular City Council Meeting Monday, February 9,2015 Page 8 Councilmember Laliberte reiterated that considerable development and discussion was occurring in this area; and suggested caution was needed on what was devel- oped and where it was done, especially when the development was seeking public taxpayer funds. Specific to a mix of units in both buildings rather than separate buildings, Mayor Roe advised that he would support that concept. Mayor Roe asked Mr. Sherman if he had any projected numbers of what gap financing would be requested from the City. Mr. Sherman advised that in the overall mix in types of housing units, the intent was for 40% workforce and 60% market rate units. Mr. Sherman reviewed ra- tionale, based on Metropolitan Council input, that market rate units were larger in square footage and provided larger common area amenity packages to meet the needs of tenants versus the smaller footprint for a 1 to 2 person family unit, re- quiring less in amenities by nature. Mr. Sherman noted that the cost for each unit would be essentially the same (e.g. cabinets, appliances), but just vary in square footage for market rate versus affordable units. If the affordable unit component was eliminated or significantly reduced, Mr. Sherman advised that the tax credit equity funding source may no longer be available to the project, which in turn would increase the gap funding required from the City or other sources. Mr. Sherman advised that it was tough to sell the project when providing less than 50% workforce units, thus their proposal for the buildings as noted. Mr. Sherman advised that physically it could be accomplished, and expressed willingness to see if they could make such a program work to make the project more efficient and viable for investors. However, Mr. Sherman reiterated that the tax credit program would not work unless there were at least 50% workforce units. Mr. Sherman ad- vised that they would return to their lenders to seek their willingness to make that adjustment or see if other arrangements could be made that would still make the project financing work. Specific to the requested financing from the City of Roseville, Mr. Sherman ad- vised that the request, as generally outlined last summer, would be for"pay as you go" tax increment financing (TIF) in an amount of $3 million to $3.5 million; with the developer taking the risk. However, Mr. Sherman noted that this request had not been formalized at this time and if the project proceeded, would come forward to the City Council as a separate presentation and request at that time. At the request of Mayor Roe for clarification, Mr. Sherman advised that, while the actual financing gap remained very preliminary at this point, the City's participa- tion should not exceed$3.5 million. Mayor Roe reiterated that if Building A as displayed provided for more than 50% but less than 100%workforce housing, with some of those units mixed into Build-