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County. With these revenue sources the pr oject is still not f easible without a $350,000 contribution or investm ent by the Authority. 2.04. From community development blo ck grant repayments and its levy, the Authority has the resources to provide $350,000 to fund the gap. 2.05. If possible, the Authority would like to recover some of its investment in the Har Mar Apartment project so that it may assist future projects. 2.06. CCHT is intending to construct 40 two-bedroom units and 10 three-bedroom units for a total of 50 new rental units on the Har Mar Site (“New Construction”). 2.07. The New Construction would commenc e in the spring of 2008 approximately one year after the Rehabilitat ion. The New Construction would be financed with a mortgage, tax credit equity, Ramsey Count y grant, Minnesota Housing Finance Agency grant, Metropolitan Council grant, corporations/businesses and foundati ons. The revenues generated by those sources are not sufficient to allow the New Construction to proceed. 2.08. CCHT has a gap of approximatel y $600,000 in the sources needed for the New Construction and has requested that the Aut hority and the City of Roseville (the “City”) to establish a tax increment financing district to generate the revenues necessary to allow the New Construction to proceed. 2.09. The increased market value result ing from the Rehabilitation and the New Construction should be sufficient to generate the approximately $600,000 which is the amount needed to fund the gap to allow the New Construction to proceed. 2.10. To generate the necessary tax incr ement, a single tax increment financing housing district must be established by April 2007 which is prior to the time that any building permits would be issued for the Rehabilitation. 2.11. As with the Rehabilitat ion, the Authority will cons ider any opportunity to recover its investment in the New Construc tion so that the Aut hority may continue to develop and facilitate its programs and plans. Section 3. Authorization . 3.01 The Authority hereby approves on a preliminary basis the general financing concept outlined in Section 2 of this Resolution. The Executive Director and the Chairman of the Authority (the “Officers”) are herby authorized to continue to negotiate with CCHT and to prepare for the Authority’s considerat ion and approval a redev elopment contract detailing the terms and conditions for the Aut hority’s assistance in both the Rehabilitation and the New Construction. 3.02. The Officers are hereby directed to tr ansmit this Resolution to the City and to seek the City’s approval of t he financing concept. The Officers are further directed to