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The remaining portion of this memo addresses these policy shifts and related financial concerns in greater detail. At the conclusion of this memo, I have added some comments that attempt to place these concerns in the proper perspective. General Financial Concerns Before looking at specifics concerns, the Council is advised to consider the general philosophy in providing financing assistance. In other words, under what circumstances will the Council participate in assistance programs? These circumstances might be somewhat broad based, such as ensuring that all redevelopment areas have a"level playing field". Or it might be more specific, such as only allowing public assistance if certain housing objectives are met. Identifying a general philosophy adds integrity and credibility to the process, and also sends a clear message to citizens, developers, and other interested parties as to what types of circumstances should be present before consideration is given. Use of Tax Increment Financing (TIF') For the past several years, the City has limited its use of TIF to pay-as-you-go agreements. With pay-as-you-go, the City agrees to turn over the captured increment to the developer up to a certain amount. Under this arrangement, it is the developer that bears the risk that the captured increment may fall short of proj ections — not the City. By contrast if the City issues TIF Bonds, the risk of tax increment shortfalls shifts to the City. Issuing T�' Bonds will require a change in policy. The overall plan ca11s for the capture and use of $50 million in tax increment revenues. By contrast, since 1982 when Roseville first began using TIF, it has captured a cumulative total of $86 million. Setting aside for the moment the derived benefits of using TIF, the Council is advised to consider whether it's prepared to use TIF to this e�ent. Secondly, the Council is advised to consider whether it's prepared to provide $75 million in financing assistance in addition to the capture of the tax increment revenue streams. This would be an unprecedented amount of assistance, far outdistancing any other financing package seen to date. On a combined basis, the total amount of City-facilitated assistance is $125 million. Certainly it's fair to point out that the TIF revenues would not materialize "but for" the presence of the new development. However, the use of TIF is highly scrutinized by State Regulatory Agencies, the State Legislature, and the general public, and should be used only after careful consideration. Funding Twin Lakes Parkway The current proforma ca11s for the construction of Twin Lakes Parkway at a cost of $7.5 million including right-of-way, landscaping, and related costs. Funding this parkway outside of the project area would require some form of borrowing, with an identifiablefunding source to repay the debt. The City's MSA and Infrastructure Replacement funds are specifically designated for the renlacement of existing roadways and are committed to previously identified projects for the next 5-7 years. The mere issuance of debt also is somewhat problematic and is addressed in greater detail below. The City could look for alternatives such as seeking federaUstate/county monies, creating a transportation utility, etc., but the reliability of these monies are uncertain at this time. �