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CCHT Request for Funding Recommendation- Page 4 of 4 4.0 Suggested HRA Action 4.1 The HRA Executive Director recommends the a pproval of funding for the project in the amount requested that will include $350,000 fo r the rehab and $600,000 in Tax Increment Financing. These findings are based upon: a. Financial review and determination that the project does have a funding gap that supports CCHT’s request for public assistance. b. The project achieves the HRA goals, outlined in their housing plan, and summarized in section 3.0 of this report. c. The amount of upfront assistance may be able to be recaptured by future tax increment on the project. d. The project would meet all of the requirements for establishment of a housing tax increment district as it will serve those with incomes well below 80% of median incomes. e. The renovation and redevelopment will add an estimated $6.8 million in market value. f. The project will serve resident who work in the community. 4.2 Therefore, based upon the findings for support outlined in Section 4.1, staff recommends that the RHRA approve the attached resolution that set fo rth the preliminary approval for HRA funds in the amount of $350,000 and recommendation for the City Council to consider preliminary approval for the financing program that would include $600,000 in tax increment financing and to call a public hearing to establish a tax increment financing district. a. As noted in the resolution, to accomm odate CCHT’s renovation and redevelopment schedule, the tax increment district must be approved prior to the issuing of any building permits for the project. CCHT plans to begin the renovation as soon as possible in the Spring of 2007. Therefore, we are targeting April of 2007 for the establishment of the district. The first part of that process is to set a public hearing to consider establishment of a district. b. Also mentioned in the resolution is the method to facilitate the TIF district. There are two options. i. The City creates the district and pledges th e revenues to the HRA for its program or ii. The City authorizes the establishment of and HRA district.