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Economic Dev. Mgr/Assistant City Administrator Brama updated the Board of Item three and cost allocation for arterial infrastructure. Mr. Mulrooney explained how the City can allocate the costs for the arterial infrastructure of phase one when they need to go in. Chairperson Steffen wondered if a 60/40 split is normal throughout the metro. Economic Dev. Mgr/Assistant City Administrator Brama stated this is something they have struggled with. There are greenfield situations and there are reconstruction or existing areas that have development. For reconstruction, it is common for cities to have policies and typically they are similar to Ramsey's. What they are talking about is greenfield development which is very different. A lot of the outer ring suburbs are dealing with the same thing. The inner ring suburbs do not necessarily have policies in the books because they are not dealing with this type of issue. As far as greenfield infrastructure and arterial infrastructure, they have heard quite the wide range and there is a handful of variables so they cannot get consistency. Chairperson Steffen asked if the funding source was for the $308,000 or for the entire amount. • Economic Dev. Mgr/Assistant City Administrator Brama reviewed the funding source with the Board. He noted they have between the different City funds upwards of $1.5 to $2 million available. There are other funds also available for use. They could also get a G.O. Bond Fund. Staff has not locked in a specific funding source but suggested the EDA would be involved in making the funding source decision. Economic Dev. Mgr/Assistant City Administrator Brama continued with his presentation of items 6-9. Chairperson Steffen thought the program was straightforward and did not have any additional questions to ask. Member Riley thought the plan was great but phase three is planned for residential so the way the City is planning this is that the residential will come last. He wondered if there was a contingency on if the developer would want that to come earlier. Economic Dev. Mgr/Assistant City Administrator Brama stated they have had prospects come in recently that have been interested in purchasing the entire residential area in the phase three development area. He thought one of the items included in the MOU is to have a discussion with the property owners to make sure it can be justified. He thought what it comes down to is a cost benefit. Mr. Mulrooney stated the property is competitively priced from a retail standpoint, not a wholesale standpoint and there is a difference between the two. Ideally, a developer would want the cost to be a little lower than what is being quoted to make it competitively priced in the retail market after improvements are installed. The costs for the landowners is substantially different. He stated they want to encourage the property owners to establish some kind of covenants for the Economic Development Authority/March 3, 2016 Page 3 of 6