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Regular City Council Meeting Monday, September 13, 2010 Page 12 Councilmember Pust noted that this provided for an assumption that everything stays frozen in time; and opined that it seemed legitimate to consider that the de- veloper would seek assistance for Phase II as well as the Assisted Living portion in Phase III; and that this whole project would continue to change based on cur- rent and projected economic situations. For the benefit of the public, Mayor Klausing reviewed the basic concept of TIF, and current and future taxation rates based on increased values; and the "BUT FOR" tests applied to such requests; and the City capturing increments from those certain improvements benefiting the property in the long-run, as well as the School District and Ramsey County. Mayor Klausing opined that, the proposed project would bring greater value and tax rates to all entities, after that nine-year term, if not before. Councilmember Roe noted the past history of the. City decertifying TIF Districts early with all increment going to all taxing districts at that time. Johnson moved, Roe seconded, adoption of Resolution No. 10839 entitled, `Reso- lution approving a Modification to the Development Program for Municipal De- velopment District No. 1 and Establishing Tax Increment Financing (Economic Development) District No. 19 (Applewood Pointe Senior Cooperative Housing Project) within Municipal Development District No. 1 and Approving the Tax In- crement Financing Plan Therefore;" (Attachment E); as amended to indicate Dis- trict No. 621 not School District No. 623, as shown on the draft documents. Councilmember Ihlan spoke against the motion, opining that there was no public purpose. Councilmember Ihlan noted that the project had been presented several years ago as market rate and market driven, with no mention of TIF or other pub- lic subsidies for the project. Councilmember Ihlan noted that there was no afford- able housing component to this project; and opined that even though a connection to Langton Lake was included in the project, it served no public benefit, as it would cut through a currently heavily wooded area and actually create a loss of park land. Councilmember Ihlan suggested that, if the City needed a connection to the park, it build it without providing $2.5 million in public subsidy to a private developer; and that there was no factual basis indicting that the project will ac- tually create any new jobs. Councilmember Ihlan further opined that, the refer- ence to this neighborhood being severely blighted was not accurate, and that con- struction of the project will actually remove additional trees, which did not~consti- tute blight. Councilmember Ihlan opined that, if there was no public purpose, it was not right to give this large of a subsidy. Councilmember Ihlan referenced page 9 of the Section "V," page 9, of the TIF Plan related to estimated public costs and the amount of additional revenue listed on Page 10 for the project, and those monies that would go to the School District and Ramsey County, as well as the City, and could be used for other public purposes. Councilmember Ihlan questioned the rationale in the developer not thinking the project was a good