09-23-1992 Council Agenda - Laserfiche WebLink

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TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT 5 I. INTRODUCTION The City of Little Canada ( "City ") proposes to capture the increase in tax capacity valuation and the resulting increase in real property taxes on improvements within the following described Tax Increment District No. 5 as authorized in Minnesota Statutes Sections 469.174 to 469.179 (the TIF Act). A. Project Description Presbyterian Homes of Minnesota has proposed to develop a 92 unit elderly housing project on a currently vacant and underutilized parcel. The development site is a 3.5 acre parcel near the intersection of Rice Street and Little Canada Road (see Exhibit A - Project Vicinity Map). The intended occupancy is for low- moderate income persons 62 years of age and older. The rents will be within the Department of Housing and Urban Development fair market rents for the Twin Cities Metropolitan Area. Construction is expected to begin in the fall of 1992 with occupancy in the Spring of 1993. The estimated total project costs is $4.9 million dollars. The City's proposed level of financial assistance is $700,000 or 14% of the total development costs. Development Program 1. Site Improvements The Developer has requested $700,000 in public assistance to pay for sewer and water costs, curbing, parking lot improvements, landscaping, land acquisition, roads and walks, SAC and WAC fees and building footings. 2. Contracts Entered Into The City intends to enter into a development agreement with Gideon Ponds Center, Inc., a 501 C -3 non - profit housing corporation affiliated with Presbyterian Homes of Minnesota. The agreement will commit Gideon Ponds Center, Inc. to develop a 92 unit elderly housing facility with certain guarantees. The City will be obligated to expend 7 Page 34