10-10-2007 Council Agenda - 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. 5 -1 (District), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that Tax Increment Financing District No. 5-1 is a renewal and renovation district as defined in M.S., Section 469,174, Subd. 10(a)(1). The District consists of 9 parcels, with plans to redevelop the area for manufacturing purposes. At more than 70 percent of the area in the parcels in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 20 percent of the buildings in the District are structurally substandard, and more than 30 percent are 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 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 reasonablyforeseeable 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 manufacturing 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. This will also enable the City to use TIF revenues to enable the future acquisition and redevelopment of the Capital View Learning Center, subject to future expansion by St. Jude into this area. 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 G of the TIF Plan.) The increased market value of the site that could reasonably be expected to occur without the use of tax increment financingwould be less than the increase in market value estimated to result from the proposed development after subtracting the present value oftheprojected tax increments for the maximum duration of the District permitted by the TIF Plan: This finding is justified on the grounds that the cost of site and public improvements and utilities add to the total redevelopment cost. Historically, site and public improvements costs in this area have made redevelopment infeasible without tax increment assistance. The acquisition of parcels along County Road B2 for open space and road right -of -way will provide for additional lane construction along County Road B2 at such time that Rice Street can accommodate that type of project. This will also eliminate a blighted influence on the area and provide an opportunity for landscaping improvements along B2 to beautify and screen the area. Providing for utility extensions for the St. Jude project (water main and sanitary sewer) will avoid the need for a lift station for sanitary sewer and will loop an existing dead -end water main off of Stephanie Court, just to the south of the St. Jude project areas. This water main extension will also be needed to meet fire flows to the project as well as to improve existing fire flows for all properties in this area. Improved traffic flow and safety will be APPENDIX G -t - 4 7 -