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4. EDA BUSINESS 4.01: Discussion of 167th Avenue and Highway 47 Node Assistant to the City Administrator Brama provided a brief history of this node and stated this topic has been discussed with the City Council and EDA for a number of years and a number of studies and conceptual plans have been completed including retail analysis studies. He reported that a meeting with the property owners was held on June 5t and a summary of that meeting was included in the agenda. He stated that all of the property owners except the cabinet property indicated an interest in selling the property, all of the property owners indicated they were interested in the EDA sponsoring a marketing package, and all of the property owners indicated they were willing to consider a Comprehensive Plan amendment. He advised that Rum River Hills is interested in pursuing a residential development and staff met with an ownership group from Rum River Hills in June to review a preliminary concept proposal. He presented a concept map of the Rum River Hills proposal and stated the proposal includes a residential development with approximately 250 townhome units. He stated part of this proposal includes a request by Rum River Hills for an underpass near TH47 that would be used by golfers and provides a benefit for pedestrians getting across TH47. He stated the proposal also includes extension of sewer service and it is estimated this extension would cost approximately $1.5 million, adding the City has a sewer fund balance of $3.4 million and it would be possible to utilize that funding source to extend sewer service. He indicated the underpass is estimated to cost approximately $400,000 and not $500,000 as noted in the staff report and Rum River Hills has asked the City to consider participating financially in the cost of the underpass. He advised that Rum River Hills has requested the City consider TIF financing and staff has determined that $3.1 million in future dollars would be available through TIF if the project came to fruition. He pointed out that establishment of a redevelopment TIF district would require the City to correct blight issues on the north side. He stated that Rum River Hills has asked the City to participate financially with sewer costs and it is predicted that the City would recoup approximately half its costs through connections to the sewer system. He stated that Rum River Hills has also asked that the City consider donating the land needed for the golf holes. He added the total value of the support requested from the City is approximately $2.1 million. Development Services Manager Gladhill stated that the Peterson parcel includes substantial wetland and any development plans will need to consider potential wetland impacts; in addition, there is a large gas line easement through the City owned parcel. Assistant to the City Administrator Brama stated the City's financial consultant has determined that a redevelopment TIF district is conceptually possible but it will be important to make sure the City meets the criteria for a TIF redevelopment district. Mr. Tom Anderson provided a brief history of their previous work on this site and stated their original proposal included 71 units on approximately six acres and they believe that the site can be increased to fifteen acres and the number of housing units increased accordingly. He expressed appreciation to City staff for their work on the concept plans. Mr. Tim Nichols stated he owns a number of different development companies that develop senior housing as well as market rate rental housing and has spent a lot of time working with Economic Development Authority /July 11, 2013 Page 2 of 7