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Regular City Council Meeting Monday, July 26, 2010 Page 25 could legislate to make them conforming, rather than looking backwards; and ad- vocated for creating a sliding scale as employed by the City of Edina or creation of a Large Lot District, but for now to retain the status quo. 12. Business Items (Action Items) a. Discuss Public Purpose of Creating an Economic Development Tax Incre- ment Financing (TIF) District to Assist with the Development of Applewood Pointe at Langton Lake and Consider a Resolution to Set a Public Hearing for Proposed TIF District No. 19 Economic Development Associate Jamie Radel provided a background of this re- quest by United Properties, the developers at Applewood Pointe senior coopera- tive project at 3008 and 3010 Cleveland Avenue as detailed in the RCA dated July 26, 2010; and their formal request received by City staff on June 10, 2010 for cre- ation of an economic development TIF District to catalyze the development of the cooperative project to fill the funding gap for this project. Ms. Radel addressed the proposed phasing for this development; and recent action by the State legislature approving temporary modification to TIF laws governing economic development TIF Districts with cities allowed to create those districts for any type of project with a demonstrated gap between now and June 30, 2010 that creates or retains jobs in the state. Ms. Radel reviewed the criteria previously established by the City for public par- ticipation, and the narrative provided by the developer analyzing how they met those criteria and objectives. Ms. Radel noted that the request before the City Council at this time was to de- termine if there was a public purpose to create such an economic development TIF District to assist with this development of Applewood Pointe at Langton Lake; and if so, to establish a public hearing date for September 13, 2010 to con- sider aproposed TIF District No. 19. Councilmember Ihlan questioned what had changed with the financials for this project, since it had been approved several years ago by the City Council without any request for a public subsidy, without the project going forward. Brian Carey, Representative from United Properties, the Developer Mr. Carey noted that there had originally been no request for financial assistance, but that the financial challenges had been discussed at that time, and since then with the financial meltdown occurring, it had hit the housing market directly. Mr. Carey noted, therefore, the need to pre-sell 60%, rather than the original 50% threshold, or 30 of the proposed 50 units in the first phase of the project. Mr. Ca- rey noted the challenges of the current housing market, in addition to the dedicat- ed land and construction of the road into Langton Park, with the developer agree-