04-11-2018 Council Packet - Laserfiche WebLink

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Appendix G Findings Including But/For Qualifications The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (TIF Plan) for Tax Increment Financing District No. 7-1 (TIF District), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that Tax Increment Financing District No. 7-1 is a redevelopment district as defined in M.S., Section 469.174, Subd. 10. The TIF District consists of nine parcels in two areas of the City, with plans to redevelop the area for a mix of commercial/industrial and housing purposes. At least 70 percent of the parcels in each area of the TIF District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings in the TIF District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. (See Appendix F of the TIF Plan.) 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the redevelopment proposed in the TIF Plan meets the City's objectives for redevelopment. Due to the high cost of redevelopment on the parcels currently occupied by substandard buildings, the limited amount of commercial/industrial property for expansion adjacent to the existing project, the incompatible land uses at close proximity, and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. The City states that development would not go forward without tax increment assistance. The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan: This finding is justified on the grounds that the cost of site and public improvements and land add to the total redevelopment cost. Historically, land, site and public improvement costs in this area have made redevelopment infeasible without tax increment assistance. These sites have been in need of redevelopment for many years. The City reasonably determines that no redevelopment is anticipated on these sites without assistance being provided to the developments. Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value of the entire TIF District will increase without the use of tax increment financing is $0. b. If the proposed development occurs, the total increase in market value will be $15,544,900. Appendix G-1