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<br />this project does have financial benefits to the City as there are $8,300,000 in fees being paid to <br />the City. He stated that there are $2,600,000 in fees going towards park dedication and trails. <br /> <br />Councilmember Woestehoff asked about the 20% under 50% rule for TIF eligible funding and if <br />this is very focused on the senior housing component. He asked about how the TIF district impacts <br />the ability to help the senior community. <br /> <br />Mr. Fletcher stated that a significant amount of seniors run out of resources approximately three <br />years after entering some sort of care, which can incur higher costs. He explained the programs <br />that can help these individuals. He stated that in the housing space there is not a direct public <br />subsidy that will support seniors who are just looking for housing with little to no services. He <br />shared that Presbyterian Homes aims to have at least 20% of their homes dedicated to affordability. <br />He shared that this is the focus of the project. <br /> <br />Economic Development Manager Sullivan reviewed the report from Elhers. He noted that <br />something that he hears from businesses in the City is that they need more employees and with a <br />housing complex this large it is likely to bring people to this City. <br /> <br />Councilmember Riley stated that he has researched Presbyterian Homes and has found that they <br />are a great organization. He said that he does not support the use of the TIF. He noted that he would <br />not be comfortable focusing on the senior housing aspect of this as it is not phase one of the project. <br />He asked about the original ask from Presbyterian Homes. <br /> <br />Mr. Aarsvold shared that they initially started out with a $20,000,000 ask. He explained that they <br />met with the County assessors and got a valuation from them of a number to anticipate when this <br />project is built. He noted that they came up with their ask based on these numbers. <br /> <br />Councilmember Riley asked what drives the need for TIF for a project like this. <br /> <br />Mr. Aarsvold stated that the cost associated with the construction quality and finishes is likely <br />different than the other project that was discussed. He added that the biggest driver is affordability. <br />He stated that 20% of the units will have a price well below a market rate unit. <br /> <br />Councilmember Riley asked if this project did not have the affordable units if there would be a <br />requirement for TIF. <br /> <br />Mr. Aarsvold stated that this would not perform as well if it did not have the affordable units and <br />the TIF. <br /> <br />Councilmember Riley asked how many things will likely change in the next 20 years that would <br />allow them to accurately calculate the numbers. <br /> <br />Mr. Aarsvold explained that this has evolved and is relatively straightforward at this point. He <br />stated that they would be looking at the performance of the project once it reaches stabilization <br />and they would then look at the official numbers of the project costs, actual expenses, and other <br />project costs. He noted that they would then use those numbers to make a projection and see if <br />City Council / August 8, 2023 <br />Page 8 of 16 <br /> <br /> <br />