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Item 08D Page 2of3 of 26 years to provide flexibility, although the anticipated obligations in the district are anticipated to be repaid sooner than that. The maximum budgetary authority in the district just over $5.4 million. This is a maximum budget intended to provide flexibly. It includes 3% annual inflation and assumes the TIF district runs for the full 26 years. The actual assistance to the property owner is anticipated to be approximately $1,770,000. Based on current projections, this could be repaid within 23.5 years. The TIF Plan assumes Pay -As -You -Go assistance to the property owner. Pay -As -You -Go TIF requires the Developer to seek its own financing secured by all or a portion of the tax increments generated by the project. In this scenario, the City does not provide the funding up front, but enters into an agreement to provide tax increment payments from the increased taxes from the project up to a specific dollar amount over time. If tax increment is not sufficient to repay the property owner, the City does not make up the difference. The TIF plan also includes a 10% allowance for City administrative costs. The City/EDA can use this 10% to pay for any ongoing costs associated with administering the project in the District. The TIF Plan also provides for creation of an interfund loan. This interfund loan is the mechanism to reimburse the City/EDA from tax increments for any expenditures incurred in connection with the TIF plan prior to receipt of any tax increment. The interfund loan would be created pursuant to an EDA resolution and would provide the City/EDA with the authority to be reimbursed from the TIF district. Strategic Plan Strategy/Goal: Support redevelopment efforts, create and maintain a positive business climate where businesses want to locate and remain in Mounds View. Maximize utilization of development space and current redevelopment sites. Fill vacant space and support redevelopment & development. Continue and focus on public relations activities. Financial Impact: The project is estimated to cost $29 million ($241,000 p/unit). The Developer is requesting Tax Increment Financing (TIF) of $1,770,000. If TIF is approved by the EDA, the owner will continue to pay property taxes on the 2021 value of $699,800. ($7,700 annual property taxes). TIF will run through 2049, or until $1,770,000 is reimbursed to the owner (whichever occurs first). Because the project is senior housing, it is not anticipated to contribute additional impacts to ISD 621. The project is anticipated to impact municipal services (e.g. police and fire), although the TIF plan concludes that the project, in and of itself, will not necessitate new capital investment in vehicle or facilities. Planning Commission Recommendation: The Planning Commission recommended approval (Resolution 1141-21). The Commission recommended consideration if a picnic area can be added. The Commission also had extensive discussion that The Villas will not be limited to residents 55+, but that only the leaseholder be 55+ (e.g. can be resident 55+, with children). Staff Recommendation: Staff recommends holding the public hearing as referenced herein and approving Resolution XXXX. A Public Hearing Notice was published by the Shoreview Press on November 9, 2021, The Mounds View Vision DOCSOPEN\MU205\52\763645.v2-11/18/21