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77 through Minnesota Housing, staff does not anticipate bringing a development agreement forward <br />78 until the project receives these credits. The City's TIF Policy will set general parameters by <br />79 which to commence these negotiations. This policy advocates using the pay-as-you-go method of <br />80 financing, which means that the developer is responsible for finding upfront financing for the <br />81 proj ect and that the City will reimburse the developer for eligible costs as the increment is <br />82 generated. This form of financing decreases the risk to the City as it is not relying on proj ected <br />83 future revenues to cover debt service on a City bond issuance. In addition, the policy also <br />84 outlines a 20-year term as the guideline length of repayment for low-to-moderate income <br />. <br />. <br />.. <br />. <br />.. <br />. <br />.. <br />.� <br />housing projects; however, the policy states that this term can be extended by the City Council to <br />protect community interest. <br />2.0 POLICY OBJECTIVE <br />By holding the public hearing on proposed TIF 18, the City Council is advancing the discussion <br />of affordable housing as advocated for through the goals and policies of the preliminarily <br />approved 2030 Comprehensive Plan. <br />91 3.0 BUDGET IMPLICATIONS <br />92 The establishment of TIF District No. 18 does not have an impact to the City's budget. The <br />93 existing market value of $5 million, which includes the value of both buildings and land, will <br />94 continue to generate tax income for the City and other taxing jurisdictions over the life of the <br />95 district. The district will only capture value beyond that of the established base value. <br />96 4.0 STAFF RECOMMENDATION <br />97 Staff recommends that the City Council hold a public hearing on June 15, 2009, to take public <br />98 comment on proposed TIF District No. 18. Holding this hearing does not obligate the Council to <br />99 approve the district. <br />100 5.0 REQUESTED COUNCIL ACTION <br />101 Hold the required public hearing for proposed Tax Increment Financing District No. 18. No <br />102 further action is required at this time. Consideration of the establishment of the TIF <br />103 district will take place on July 13, 2009. <br />Prepared by <br />Attachments <br />104 <br />Jamie Radel, Economic Development Associate <br />A: Development District No. 1 <br />B: TaY Increment Financing Plan for TaY Increment Financing (Housing) District No. 18 within <br />Development District No. 1 <br />Page 3 of 3 <br />