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City of Little Canada, Minnesota <br />Baker Tilly Municipal Advisors, LLC Page 4 <br /> <br /> <br />Section H Property to be Acquired in the TIF District <br /> <br />The City may acquire and sell any or all of the property located within the TIF District; however, <br />the City does not anticipate acquiring property at this time. <br /> <br /> <br />Section I Specific Development Expected to Occur Within the TIF District <br /> <br />The developer (RIDE Limited Partnership) proposes to construct a project that is anticipated to <br />include the relocation of the existing Flameburger restaurant to allow for development of a five <br />story 160 unit multifamily apartment housing building with 118 enclosed parking stalls and 153 <br />on site surface parking spaces on the approximately 3.09-acre development area. The building <br />will be a mix of one, two and three-bedroom units. In order to comply with the requirements of a <br />Housing District, at least 40% of the units will be occupied by persons/families with income no <br />greater than 60% of the area median income (AMI). The developer is proposing that 100% of <br />the units will be occupied by persons/families with incomes no greater than 60% AMI. The City <br />anticipates using tax increment revenues to finance eligible costs associated with development <br />of the project site including acquisition, demolition, site development/improvements, public <br />improvements and other affordable housing costs, as well as related administrative expenses. <br /> <br />Construction of the new development on the project site is projected to be 50% completed in <br />2025 and is expected to be fully constructed by December 31, 2026, and be 100% assessed <br />and on the tax rolls as of January 2, 2027, for taxes payable 2028. <br /> <br /> <br />Section J Findings and Need for Tax Increment Financing <br /> <br />In establishing the TIF District, the City makes the following findings: <br /> <br />(5) The TIF District qualifies as a housing district. <br /> <br />See Section D of this TIF Plan for the reasons and facts supporting this <br />finding. <br /> <br /> (2) The proposed development, in the opinion of the City, would not reasonably be <br />expected to occur solely through private investment within the reasonably <br />foreseeable future. <br /> <br /> The proposed project is anticipated to include the relocation of the <br />existing Flameburger restaurant to develop a five story 160 unit <br />multifamily housing apartment building with 118 enclosed parking stalls <br />and 153 on site surface parking spaces. The City’s finding that the <br />proposed development would be unlikely to occur solely through private <br />investment within the reasonably foreseeable future is based on an <br />analysis of the project pro forma and other materials submitted to the City <br />by the developer. These documents have indicated that the costs of <br />constructing the new project, in addition to redevelopment and site <br />improvement costs will result in financial metrics returns that are not <br />sufficient to support the development project, resulting in a financial gap <br />and making this housing development infeasible without public <br />assistance. Therefore, the developer has indicated in communications <br />with the City and submitted financial data that the development as <br />proposed would not move forward without tax increment assistance.