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• Page 8 1 Mr. Soth said the Plan is definitive and that the developer is committed to the minimum 2 plan but there is no guaranty on the Preferred Plan. Soth responded to Commissioner 3 Hatch's question on the worst case financial scenario, with a question of his own - if 4 this project does not go forward, what does that mean for the future of the Apache 5 area? Mr. Soth said he was involved with Minneapolis' Block E redevelopment and that 6 project had many of the same issues. As it was with that project, part of the answer is 7 "Is there another project around the comer?". 8 Commissioner Melsha asked about the Preliminary/Final Plan and the PUD. Mr. Soth 9 told him that the Preliminary/Final Plan is what the developer is going to do with the 10 property and thePUDputs it in contract form. 11 Mr. Haik interjected that Apache presently pays $150,000 a year in taxes and stated 12 that the City can do everything with US Bank that it can do with Hillcrest. 13 Commissioner Thomas asked that should Hillcrest begin to use Interim Uses, if that is 14 the time when the developer loses TIF. Mr. Shardlow responded that Interim Uses are 15 not their objective, but the Uses in the Preferred Plan are what they are aiming for. He 16 stated that interim uses are temporary use of the property and it comes down to a 17 judgement call by the City. Hillcrest is committing and defining. q8 Commissioner Hanson asked if:the proposed Plan is more restrictive than the current 19 Plan in use. Mr. Shardlow explained that the proposed Plan is more restrictive to retail .20 and less so to light industrial. 21 An in depth discussion about TIF ensued. Mr. Haik and Commissioner Hanson 22 commented on TIF. Mr. Robert Strachota, Shenehon Company, is the TIF consultant 23 for the developer, explained that the value of the property needs to increase to $10 24 million for the Interim Plan and $20 million for the Preferred Plan; currently the 25 property is valued at $5 million. That value is frozen. The worst case scenario would 26 be that the City would receive the same tax money for the next 3 years as it is now 27 receiving. The $20 million value must be reached before the developer can receive all 28 the TIF money. The $300,000 is the City's reimbursement (contribution) to the 29 developer for the $1 million the developer is spending for storm water improvements. 30 Mr. Jones indicated Mr. Haik has said the City is giving 50% of the money for this 31 project. Jones wanted to know if this percentage is common. Mr. Tankenoff responded 32 that Hillcrest is making a substantial investment and again offered his consultants to 33 residents with questions about the project. 34 Commissioner Hanson wanted his assumption clarified that in this TIF district, as the value of the property increases, the City-would get an increase in tax revenues and a percentage of that would go back to the developer.