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78 financing, which means that the developer is responsible for finding upfront financing for the 79 project and that the City will reimburse the developer for eligible costs as the increment is 80 generated. This form of financing decreases the risk to the City as it is not relying on projected 81 future revenues to cover debt service on a City bond issuance. In addition, the policy also 82 outlines a 20-year term as the guideline length of repayment for low-to-moderate income 83 housing projects; however, the policy states that this term can be extended by the City Council to 84 protect community interest. g5 2.O POLICY OBJECTIVE 86 Sy approving TIF District No. 18, the City Council is advancing the potential availability of 87 affordable housing as advocated for through the goals and policies of the preliminarily approved 88 2030 Comprehensive Plan. In addition, development of new affordable rental housing will help 89 the City meet its affordable housing goal, which is set by the Metropolitan Council. 9O 3.O BUDGET IMPLICATIONS 91 The establishment of TIF District No. 18 does not have an impact to the City's budget. The 92 existing market value of $5 million, which includes the value of both buildings and land, will 93 continue to generate t� income for the City and other t�ing jurisdictions over the life of the 94 district. The district will only capture value beyond that of the established base value. 95 4.O STAFF RECOMMENDATION 96 Staff recommends that the City Council approve the creation of TIF District No. 18 as Aeon's 97 proposed project helps the City to accomplish several of the housing goals and policies set 98 forward in the preliminarily approved 2030 Comprehensive Plan and to meet the City's 99 affordable housing goals prescribed by the Metropolitan Council. 100 Sy creating this new TIF district, the City will be creating a funding mechanism to assist Aeon 101 with the creation of new affordable housing units. (The terms of utilizing this funding source will 102 be identified and agreed upon through the ratification of the development agreement in the 103 future.) The creation of these units is supported by the City's preliminarily approved 2030 104 Comprehensive Plan. The Plan states in Goal 1 in Chapter 6: Housing and Neighborhoods: 105 "Provide a wide variety of housing options in order to retain and attract a diverse mix of people 106 and family types with varying economic status, ages, and abilities." Policies 1.1 and 1.5 further 107 detail why the City Council should support this project. Policy 1.1 states, "Promote the 108 development of housing stock that is appealing to persons of varying economic means," and 109 Policy 1.5 states, "Partner with regional, state, and federal agencies, other cities/HRAs, nonprofit 110 groups, and private-sector developers to provide high-quality, affordable housing to 111 accommodate the City's share of regional affordable-housing needs." 112 The Metropolitan Council has identified Roseville's share of the region's affordable housing as 113 201 new affordable housing units. Aeon is proposing to construct a new 48-unit apartment 114 building dedicated as affordable units. If this project comes to fruition, this project, on its own, 115 will help the City meet nearly one-quarter of its ten-year affordable housing goal. 116 Specifically, staff recommends adoption of a resolution that modifies Development District No. 117 1 to reflect the creation of the new TIF district and that also establishes TIF District No. 18. 118 It should be noted that this action only creates the TIF district and does not allocate any TIF 119 dollars to Aeon or the project. As mentioned previously, the City and the developer will need to 120 enter into a separate agreement regarding the use of TIF funds at a later date. Page 3 of 4