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Finance Committee for a review of its financial components. The Solove developments followed a similar process. Councilmembers sought updates on the projects' timeline. Daniel Budish of W. 117 ' Development that phase 1 of the project is underway with construction ongoing at the Fieldhouse. Mr. Budish indicated he hopes to open the Fieldhouse in July of this year. The renovation of the Phantasy comprises phase 2, and the development team is waiting to hear whether it was successful in receiving historic tax credits and/or brownfield funding from the state. Mr. Budish added that the site is largely clean, however there is some asbestos present, which makes it brownfield eligible. The developers are hoping to close on the financing before the end of the year, which will lead to an 18-month construction timeline. Councilmembers cited the $5 million funding gap, the high cost of materials, and increased labor rates, and asked whether there are any remaining holes in the projects' financing. Mr. Budish described his company's process of pursuing tax credits and more affordable sources of capital first to bring down the cost of capital, as a way to make rents affordable for tenants. Councilmembers questioned whether the project still works financially. Mr. Budish indicated that that some tax credits from other sources are needed, and that his company should be in a good position to receive a historic tax credit. Councilmember Baker asked what happen if funding stalls on the Phantasy phase of the project and whether the TIF would stay in place, since all land parcels involved are included in the TIF agreement. Director Leininger stated that the current commitment is on both projects succeeding and that the development agreement would have to be reopened if that situation arose. He added there are timing and job requirements in the agreement that create conditions for reopening the TIF. Lastly, he stated that there is some wiggle room on the $5 million TIF figure in case other obstacles are encountered in the development process. Councilmember Bullock asked how the development could be altered if funding falls through. He noted that the Phantasy seemed to be the most complex part of the development plans. Director Leininger stated that the TIF flows back to the developer, but it is predicated on what the developer does. He added that all the risk is carried by the developer and the entire agreement can be opened back up if funding starts to slip. Mr. Budish stated his company has done separate analyses on the Fieldhouse and Phantasy. They found that if the Fieldhouse opens and is successful, any timing issues on the Phantasy would not trigger the TIF on the Fieldhouse. Since the TIF is capped at$5 million over 30 years, Councilmember Bullock inquired what would happen if that mark was reached prior to that time period. Director Leininger indicated the TIF would then end and taxes would flow to various agencies based on millage. The city was conservative with its projections, choosing not to project the development appreciating in value over time. Motion by Chairman Shachner, seconded by Councilmember Bullock to recommend Ordinance 07-2021 for approval. The meeting was adjourned without objection at 5:49PM.