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MEMORANDUM RE: Tax Increment Program, Housing Alliance Page 2 at this time) funds for pathway extension which may be used for the Off —site pathway work if this. cannot be included in the tax increment budget. 2. At Thursday's meeting, and consultation with Charles Honchell we increased the budget for the drainage facility to $50 000� in anticipation of this effort being more expensive due to the poor soil conditions in that portion of the site. why the current Housing Alliance site was suted for arkIt brings to mind the reason in the Comprehensive Plan, that being that it wouldgbesuneconomical toedevelop the land for other uses. That assumption has proven correct. 3. The program is for 15 year bonds with three years of capitali interest on the front end with a 12 year amortization. When Stage 2zis constructed (additional 70 units) the bond coube accelerated, or the City may wish to amend the planatoenincludelother improvements. Such improvements could include development of the park site or use of the general public and/or the residents of the elderly project. Extension of pathways through the park site to connect to others to the existing park to the south could also be considered. 4. Walter Hartmann indicated that his clients would like to proceed with the soil correction (estimated at $175,000) with a payback arrangement. In any case, it would appear that the City would have to put the project out for bids and that the City would have a lease on the land for the purpose of expending public funds. this arrangement in greater detail at the CouncilHartmann meeting.W1ll Theexplain intent here is to have the soil correction settle over the winter season prior to construction planned for the spring of 1985. 5. We have asked Mr. Hartmann to get a coy of the Program and the revised site plan to the ityp staff dasa quickly IncrementasPossible so as to give them the opportunity to review the program prior to theCouncil meeting. Mr. Honchell informs us that he is meeting next week with the Housing Alliance engineers to more precisely determine the method and estimated costs of the storm drainage realignment improvement. Thus, the $50,000 budgeted figure will subject to change. be 6. The action the Council may take at its 23 July meeting is public hearing date, refer the Plan to t� set the the Planning Commission for its September meeting, and authorize distribution of the plan to the county, and the school district to begin the required 30 day waiting period for their review. 7. We have not completed our review of the total program, but we do have considerable confidence in Mr. Hartmann's expertise and experience in preparing such programs. 8. We do feel, however, that the basic elements of the funding program are appropriate to the tax increment procedure and intent as established in Minnesota. In other words, the problems proposed to be solved with this funding program is a prime example of the way in which the procedure was intended to be used.