11-28-2018 Council Packet - Laserfiche WebLink

Home Browse Search

EXHIBIT A RESOLUTION NO. _____________ The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 7-2 as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: 1. Finding that the Tax Increment Financing District No. 7-2 is an economic development district as defined in M.S., Section 469.174, Subd. 12. Tax Increment Financing District No. 7-2 is a contiguous geographic area within the City's Development District No. 7, delineated in the TIF Plan, for the purpose of financing economic development in the City through the use of tax increment. The District is in the public interest because it will facilitate the repurposing of an existing building for the expansion of a company’s food processing and distribution business which will increase employment in the State and preserve and enhance the tax base of the state. 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 Tax Increment Financing District No. 7-2 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 development proposed in this plan is a food processing and distribution facility that meets the City's objectives for economic development. The cost of acquiring the existing facility, improvements, upgrading the building to food-grade standards and finishes, fixtures, and equipment, and IT installing makes development of the building infeasible without City assistance. The developer was asked for and provided a letter as justification that the developer would not have gone forward without tax increment assistance (see attachment in Appendix F). 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: The City supported this finding on the grounds that the repurposing ofsuch a large building adds to the total development cost. The limited number of companies that could use such a large building in this area have made development infeasible without tax increment assistance. The City reasonably determines that no other development of similar scope is anticipated on this site without substantially similar assistance being provided to the development. Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0.