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TIF District Budget: To develop the budget for the District, we took into consideration Development 65’s proposed development (135 units), what Trident had proposed on the Bremer Bank site (75 units) and then what previous developers had proposed for development on the remaining portion of the Lowry Grove site (279 units). This totals approximately 489 units of multi-family housing. The TIF District budget is a maximum budget, meaning that over the term of the District, the amount of TIF received cannot exceed what is noted for Project Costs Total in the budget ($35,604,814). If that were to happen, the City and HRA would have to modify the budget which would entail going through the entire notification and public hearing process as if the City and HRA were establishing a new district. In order to alleviate this as a future consideration and cost, we add annual inflation to the proposed development to increase the budget. The budget is just that, a budget for TIF reporting purposes. It has no relation to the amount of TIF assistance provided or that will actually be generated (as long as the TIF assistance doesn’t go over the Project Cost Total, which is extremely unlikely). The amount of assistance is negotiated for each project and is approved under a separate TIF agreement for each project. The City and HRA will retain 10% of the TIF generated for administrative costs of the District or for other redevelopment activities within the City and within Hennepin County Interfund Loan: The City is approving an interfund loan (IFL) of $25,000 to cover any future administrative costs associated with the District that are not covered by the Developer until such time there is adequate administrative TIF (10%) generated. Any funds advanced under the IFL will carry an interest rate of 4%, which is the statutory maximum rate. Please contact me at 651-697-8506 with any questions. 4