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Home My WebLink About2.b. Proposed Changes to the Harmony Development by Rottlund HomesAGENDA ITEM: Proposed Changes to the Harmony Development by Rottlund Homes AGENDA SECTION: PREPARED BY: Eric Zweber; Senior Planner AGENDA NO. ATTACHMENTS: None APPROVED BY: RECOMMENDED ACTION: Discussion 4 ROSEMOUNT CITY COUNCIL City Council Work Session: June 3, 2008 EXECUTIVE SUMMARY TAX INCREMENT FINANCING INFORMATION Ehlers Associates (Ehlers) ran TIF projections for the Rottlund proposals and for the originally approved preliminary plat. Under the Ehlers TIF run the Rottlund proposal is projected to be built out by 2012 with a total gross tax increment of $1,141,223. The apartment and senior housing of the original approval is projected to be built out in 2015 with total gross tax increment of $2,508,623. Ehlers has also run the two proposals separately for the apartment block and for the senior housing block under the same build out scenarios. The Rottlund proposal for the former apartment block is projected to have a total gross tax increment of $724,600. The apartments within the original approval are projected to have a total gross tax increment of $1,551,216. The Rottlund proposal for the former senior housing block is projected to have a total gross tax increment of $416,623. The apartments within the original approval are projected to have a total gross tax increment of $957,407. Staff was conservative on the building values on the runs, but would caution the Port Authority about the build out schedule for the apartments /senior housing. Rottlund has an interest in constructing their townhouse in a timely manner to recover their cost for development. In the case of the apartments and senior housing, there are no developers that have made any commitment or expressed any interest in building those units. There is no certainty that apartments and senior housing would be built by 2015, as portrayed in the TIF run. The two runs compare the potential increment generated by the two differing projects within the same timeframes. However, due to the uncertainty of the high density project buildout, it is difficult to compare the two options monetarily The equilibrium in TIF funds received from the Rottlund proposal and the original proposal is reach if the apartments and senior housing are constructed by 2021. If the apartments and senior housing were to be constructed before 2021, then the original approval would generate more TIF funds than the Rottlund proposal, but conversely, if the apartments and senior housing were to be constructed after 2021, then the Rottlund proposal would generate more TIF funds than the original approval.