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� � � � � � � � � r , � Ciiy of Roseville, Minnesota Financing Tools and Concepts This section discusses various methods to finance the public improvements required for new development and redevelopment projects. There are usually at least two components to finance: (1) infrastructure such as utilities, streets and roads necessary to allow access and service, and (2) a negotiated assistance package related to public improvements directly benefiting the project. The infrastructure for new residential properties is usually built to support a development area, and the cost per lot is folded into the lot or home selling pnce. The costs and requirements for a typical lot are fairly standard. For large commercial properties, the infrastructure required is negotiated along with plan review and approval. The necessary parking, size of pipes, signage and required access are agreed to, along with agreement on how much the developer must pay for these improvements. The portion benefiting only the new development is generally paid by the developer, and the impr,ovements that may help the developer but also improve the area for future and existing properties are typically shared or paid by the City. Negotiated redevelopment assistance is generally reserved for highly desirable developments that meet the City's criteria for tax base growth, job creation, affordable housing, community service, or a particular business segment the City has been targeting. The tax increment act, abatement act, and grant programs limit the items that the City may pay for, and include public improvements such as acquisition, demolition, relocation, land, parking, landscaping, infrastructure, sidewalks, etc. The level of assistance may be determined by specific public improvements to be funded by the City, a percentage of value, or a flat dollar amount, as long as it is used to pay for public improvements. I n the case of Twin Lakes, assistance is required to level the playing field with vacant, development- ready parcels of property in other parts af the metropolitan area. � The financing tools below address vanous methods the City may employ to initially finance the improvements, or to reimburse the developer for public improvements, based on certain assistance provided to the redevelopment project. While ideally it would be useful to assign a nsk spectrum to the tools listed in this section, this is � not possible without answering a significant number of questions about a particular develo pment. We fell that this process, without s pecific critena addressing other hypothetical variables, can be very subjective and therefore � limited in its usefulness. We have, however, provided general commentary regarding the perceived nsk of each of the financing tools listed. � � � c � .� SPRINGSTED 1. Pay as You Go (PAYGO) Tax Increment may be used to repay the developer for public improvements on a pay as you go basis, or to pay debt service on Tax Increment revenue bonds. Pay as you go financing consists af an agreement between the City (or Authority) and the developer, to make payments to the developer each year based on actual TI (Tax Increment) collections that year. Only tax increment generated from the project is used for repayment, so if there is not enough increment annually or in total to repay the developer for all of the costs agreed upon including interest, the City (or Authority) is not obligated to make up the difference. Cities that offer bonds or guaranteed reimbursements may be looked upon more favorably by developers searching for a financially viable site. Ra�e 15