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adopt rules establishing guidelines for individuals <br />qualifying for low and moderate income housing. For <br />• 1985 the Agency has established that an individual <br />may qualify for a loan for new construction with a <br />' mortgage interest rate between 10.51 to 11.00$ if the <br />individual's maximum adjusted income is $36,000 or <br />less. The new construction may not succeed $83,000 <br />in cost. Based upon the maximum income levels and <br />housing costs set by the Agency, it appears that 27 <br />units out of 100 units do not exceed the maximum <br />housing costs for low and moderate housing. The <br />developer has represented to the City that the <br />development will be inhabited by retired individuals <br />many of whore have average annual incomes from $15,000_. <br />to $36,000. <br />(b) The proposed redevelopment in the opinion of the <br />City Council, would not occur solely through private investment <br />within the reasonably foreseeable future and therefore the use <br />of tax increment financing is deemed necessary. <br />The reasons supporting this finding are that: <br />The project costs have been projected to include <br />$500,000 of tax increment financing with a total <br />project cost of $9,200,000. The tax increment <br />financing is needed to provide affordable homes for <br />retired individuals. The scope of the project would <br />have to be reduced without such financing. <br />(c) The Tax Increment Financing Plan conforms to the <br />general plan for development or redevelopment of the City of <br />Falcon Heights as a whole. <br />The reasons for supporting this finding are that: <br />The project area is residentially zoned and <br />well-suited for the project. The City of Falcon <br />Heights is in need of population growth to avoid <br />losing state aid. Nearly 2/3 of the City is <br />currently tax exempt since it contains lands owned <br />and used by the State Fairgrounds and the University <br />of Minnesota. <br />(d) The Tax Increment Financing Plan will afford <br />maximum opportunity, consistent with the sound needs of the <br />City of Falcon Heights as a whole, for the development or <br />redevelopment of Tax Increment Financing District No. 1 by <br />private enterprise. <br /> <br />