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Truth-in-Tazation Hearing and Regular City Council Meeting Monday, December 03, 2007 Page 12 Mr. Miller's report included public policy considerations; possible negotiation points; rationale of Ryan Companies due to changes in the State's property tax system and reduced revenues realized of several million dollars less than origi- nally expected; and the sophisticated nature and size of this developer. Further discussion included the City's reputation with the development commu- nity, based on recent Twin Lakes litigation, and potential impacts on future or prospective developers; compression of tax rates that drastically reduced the commercial tax rate, having negative economic results for Ryan, and their contri- butions to the local and area community. Additional discussion included differences in the Twin Lakes redevelopment and the Centre Pointe development. Councilmember Ihlan opined her willingness to entertain negotiations; with the understanding that there would be no future claims against the City for Centre Pointe or Twin Lakes. Mayor Klausing opined that it was clearly within the Agreement that Ryan was obligated to pay back the balance of the loan after applying Ryan's portion of the captured increment, projected to be approximately $95,000. Mr. Miller assured Councilmembers that, while Ryan was seeking consideration from the Council of some relief, they were aware of their contractual obligations. Mr. Miller further clarified that consideration of this issue was completely inde- pendent of consideration for extending TIF District # 1. Councilmember Pust opined that, with citizens coming before the City Council earlier at tonight's meeting notifying the Council of their increasing taxes and dif- ficulty in making payments, the Council should not entertain giving back money legally owed to the City. Councilmember Pust further opined that Ryan Compa- nies was a sophisticated business and developer; and that they had been in the marketplace long enough to recognize the good faith deal made in the Redevel- opment Agreement with the City, and anticipated doing further business with Ryan in the Roseville community in the future. Councilmember Roe concurred with Councilmember Pust's comments; and noted that, with the original amount of $2.8 million, and only 3.5% remaining to be paid, all loaned to Ryan Companies by the City and paid back by TIF monies, Ryan hadn't actually paid anything out-of-pocket to-date. Mr. Miller noted that the upfront $2.8 million was reimbursement for upfront util- ity work.