10-27-1999 Council Agenda - Laserfiche WebLink

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TIF District No. 3 -2 development objectives. A comparative analysis of estimated market values both with and without establishment of Tax Increment Financing District No. 3 -2 and the use of tax increments has been performed. Current Market Value (base) $6,985,900 Estimated New Value (w/ TM) 7,885,900 Difference 900,000 Present Value of Tax Increment 507,915 Difference 392,085 Value of Development w/o TIF 0 Difference $392,085 This analysis indicates that the increase in estimated market value of the proposed development exceeds the estimated market value of the site absent the establishment of Tax Increment Financing District No. 3 -2 and the use of tax increments. 3. Finding that the Tax Increment Financing Plan for District No. 3 -2 conforms to the general plan for the development or redevelopment of the municipality as a whole. The site is appropriately zoned. The Tax Increment Financing District has been reviewed by the Planning Commission and by resolution passed on October 12, 1995 has been found to conform to the general development plan of the City. In addition, the Plan helps to implement the Development Guide for the Rice Street and Little Canada Road area. 4. Finding that the Tax Increment Financing Plan for District No. 3 -2 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of Redevelopment Project Area No. 1 by private enterprise. Recent development trends have demonstrated the need for city participation in redevlopment. Limited development activities have occurred and property values have fallen. Through the process of creating a Development Guide, it was determined that the City must play a lead role in the development process. The Development Guide and this Plan provide a framework for maximizing development opportunity by private enterprise. 2.17 County Road Costs Pursuant to Minnesota Statutes, Section 469.175, Subdivision la, the county board may require the authority to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will in the judgement of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or other county plan. If the county elects to use increments to improve county roads, it must notify the Authority within thirty days of receipt of this plan. Page 159 2 -17