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not including interest. Ms. Kvilvang noted the dollars under consideration are based on present value dollars. Ms. Kvilvang stated potential land revenue for all uses in the Primary Area is estimated at $33,872,780. This number will be refined as better market data becomes available. Potential TIF of the 18 areas has a present value of $36,716,712 in tax increment. With TIF and land sale proceeds, the sources total $70,589,491 and after deducting City reimbursables and pay- as -you- go there is a difference totaling $39,342,865. Ms. Kvilvang explained this means there is about $30 million extra that can be considered during the HRA's decisions on projects, decertification of parcels, and provide some flexibility in knowing that the development schedule is aggressive and may not be realistic so it can be determined what is more realistic timing. She stated the "clock" for any TIF District does not start until the City receives the first TIF distribution from the County. To date, no TIF has been received and only the VA Clinic and Allina Clinic have increased value. For all other parcels, the current value is less than the base value. Ms. Kvilvang stated approximately $23 million in new development is needed to get to positive TIF for the District as a whole, which would allow The Residence at The COR Apartments to capture its increment. Ms. Kvilvang explained that since the District is not generating any increment, the Flaherty & Collins (F &C) development agreement requires it to pay off the bonds of the project in June of 2015 and then the HRA would provide F &C with a pay -as- you -go TIF Note. It was noted that the 4 Year Rule requires the City to have a qualifying District within four years but Ramsey bought the land and put in some roads prior to creating the District so some parcels could be pulled from the District and not generate tax increment until there is a qualifying activity. At that point, they would be put back into the District. Ms. Kvilvang stated the biggest concern is the obligation to F &C to issue a pay -as- you -go Note. She explained the HRA could amend the special legislation to exempt the District from the 4 Year Rule, reset base values at pay 2014 or pay 2015 values, or keep the base value of the Allina Clinic, the VA Clinic, and The COR Apartments at the pay 2011 certified value. Another option is to obtain special legislation to create The Residence at The COR Apartments as a stand -alone TIF District. Ms. Kvilvang stated the HRA can look at decertifying selected parcels out of the District and/or a fiscal disparities election. Currently, increment is paid outside the District which creates more TIF for the City to repay itself but there is an impact to other taxpayers. However, the HRA can make a change one time to have it paid inside the District, which would create less TIF for the City to repay itself (approximately $6.5 million less in TIF) but have no tax impact to other tax payers. Commissioner Strommen noted the presentation indicates "the end uses established by the AUAR" and asked if that means the Ramsey Town Center or The COR Plan. Ms. Kvilvang stated it would be back to The COR Plan. Commissioner Strommen asked why the TIF District boundaries were drawn in that way. Housing and Redevelopment Authority / September 17, 2013 Page 3 of 6