10-27-1999 Council Agenda - Laserfiche WebLink

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TIF District No. 3 -2 calendar year; and 2. the total annual amount of principal and interest payments that are due for the current calendar year on (i) general obligation tax increment financing bonds and (ii) other tax increment financing bonds. and for each tax increment financing district within the City: 1. the type of tax increment financing district; 2. date on which the district is required to be decertified; 3. amount of any payments and the value of in -kind benefits, such as physical improvements and the used of building space, that are financed with revenues derived from increments and are provided to another governmental unit (other than the municipality) during the preceding calendar year; 4. the tax increment revenues for taxes payable in the current calendar year; 5. whether the tax increment financing plan or other governing document permits increment revenues to be expended outside of the tax increment financing district; 6. any additional information that the State Auditor may require. Copies of this report must also be provided to the county and school district boards. 2.16 Municipal Approval and Public Purpose The reasons and facts supporting the finds for the adoption of the Tax Increment Financing Plan for District No. 3 -2 as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: Finding that the District No. 3 -2 is a redevelopment district as defined in Minnesota Statutes, Section 469.174, Subdivision 11 and Section 273.1399, Subdivision 1. District No. 3 -2 consists of 24 parcels of property. Parcels consisting of 71% percent of the area are occupied by buildings and improvements. Buildings have been reviewed by city staff and consultants and 82% percent of the buildings have been found to be structurally substandard (See Appendix 2 -A). 2. Finding that the proposed development, in the opinion of the Council, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary 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 plan. Due to the high cost of redevelopment on parcels currently occupied by substandard buildings and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. Analysis included in the Development Guide demonstrates the need for tax increment financing to make the cost of redevelopment feasible and competitive with other development alternatives. The City's contacts with developers verifies this point. City financial participation is also needed to maintain an affordable business environment and to help achieve community Page 158 2 -16