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<br /> <br />Economic Development Manager Sullivan noted that if this project goes forward it will become <br />taxable at the base value so some taxes will be captured. <br /> <br />Councilmember Howell asked what the City portion would be received off of the taxes on this <br />land. <br /> <br />Mr. Fletcher stated that it is around $30,000 as well as 10% of the TIF for administrative fees, <br />which would be around $80,000. <br /> <br />Economic Development Manager Sullivan stated that they can receive up to 10% for the <br />administrative expenses from the TIF district; however, they do need to have expenses that this <br />can be allocated towards. <br /> <br />Councilmember Howell stated that she does not see this generating much of anything while still <br />providing services to the people who live there for 20 years, which is a concern. She noted that she <br />does not see the benefit of providing City services for 20 years without generating revenue to fund <br />it. <br /> <br />Councilmember Riley stated that they will be entertaining an offer from an apartment that is not <br />asking for assistance. He asked what necessitates the assistance in this case. <br /> <br />Mr. Fletcher explained that with high interest rates and construction costs, Presbyterian Homes <br />has a goal to build a product that is consistent with State language around TIF districts and provides <br />some level of affordability. He stated that Presbyterian Homes is taking almost no margin on this <br />deal. He added that the infrastructure costs on this site are significant. He noted that all construction <br />deals and projects are different. <br /> <br />Economic Development Manager Sullivan noted that for the project in The COR, they are also <br />going to have to do site improvement work and connect utilities. He said the magnitude of the site <br />work and utilities is much smaller at The COR site. He noted that the fundamental difference <br />between these two projects is the affordable component that the Presbyterian Homes project has <br />that The COR project does not have. <br /> <br />Councilmember Woestehoff added that a lot of the grading work in The COR has been done by <br />the City in preparation for the development. <br /> <br />Mayor Kuzma stated that this also adds work-force housing which is what the City needs. <br /> <br />Councilmember Musgrove noted that the land is not generating taxes for the City; however, there <br />are not currently a lot of City expenses in relation to this site. She added that there are expenses <br />that she does not see them recovering administratively over the 20 year term. She asked if the need <br />for the TIF district or the desire for having the 20% housing qualification came first. <br /> <br />Mr. Fletcher explained that the project was already in the negative without the TIF. He stated that <br />getting the additional support through the TIF helps bring this back into balance. He added that <br />City Council / August 8, 2023 <br />Page 7 of 16 <br /> <br /> <br />