08-11-2003 EDA Packet - Laserfiche WebLink

Home Search

City of Lino Lakes, Minnesota Section J Findings and Need for Tax Increment Financing In establishing the TIF District, the City makes the following findings: (1) The TIF District qualifies as an economic development district; See Section E of this document for the reasons and facts supporting this finding. (2) The proposed development, in the opinion of the City ,;would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future, and the increased market value of the site that could reasonably be expected to occur without the u oftax increment would be less than the increase in market value estimal ; result from the proposed development after subtracting the present vale of teprojected tax increments for the maximum duration of the TIF District by the TIF Plan; The proposed development, in theopinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: The proposeddevelopmentis an industrial park including various manufacturing and warehouse uses. e land in the TIF District has been vacant for many years, despite previous efforts by the City to encourage its development (including yestablishment a previous tax increment financing district that includes mosof se parcels •; a site requires sewer, water and road improvements accommodatemanufacturingand warehouse development, and the cosh Of those improyementsbay not, as a practical matter, be passed to proposed developers in€i °users of the site, based on analysis of market conditionsLino Lae v n addition, t e City has reviewed a pro forma submitted by the initial props e ' developer, showing that the cost of land acquisition" and public improvements make the proposed development infeasible assuming customaryyrates of return The increased market wit f the site that could reasonably be expected to witho a & use of tax t cre lent financing would be less than the increase estimated to result from the proposed development after subtra '- ther ent value of the projected tax increments for the maximum duration o the TIF District permitted by the TIF Plan: As noted above, the site has been vacant for any years. Without installation of the improvements needed to serve the area, the City has no reason to expect that significant evelopment uld occur without assistance similar to that provided in this plan. =herefore, the City concludes as follows: ity's estimate of the amount by which the market value of the site will nc ease without the use of tax increment financing is $0, except for a small amount attributable to appreciation in land value. b. If all development which is proposed to be assisted with tax increment were to occur in the District, the total increase in market value would be approximately $16,963,000. c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $1,254,113 (See Exhibit V) SPRINGSTED Page 5