12-20-2004 EDA Packet - Laserfiche WebLink

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City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota (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 use of tax increment would be Tess than the increase in 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 TIF District permitted by the TIF Plan; The proposed development is a mixed use project consisting of commercial, owner -occupied and rental housing in Lino Lakes. The properties in the TIF District have been dilapidated for several years, despite previous efforts by the Authority to encourage its development. The Authority has been trying since 1998 to find a suitable developer for the site. 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 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 TIF District permitted by the TIF Plan: As noted above, the site has been blighted for many years. The area is not serviced by public water and sewer. Without installation of the improvements needed to serve the area, the Authority has no reason to expect that significant redevelopment would occur without assistance similar to that provided in this plan. Several environmental conditions exist Therefore, the Authority concludes as follows: a. The city's estimate of the amount by which the market value of the site will increase 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 $72,222,325. 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 $14,092,793. (See Exhibit V) d. Even if some development other than the proposed development were to occur, the Authority finds that no alternative would occur that would produce a market value increase greater than $58,129,532 (the amount in clause b less the amount in clause c) without tax increment assistance. The reasons and facts supporting this finding are that the developer has represented to the Authority that it would not undertake the proposed development without the assistance of tax increment financing. Private investment will not finance these development activities because of prohibitive costs. It is necessary to finance these development activities through the use of tax increment financing so that other development by private enterprise will occur within the Project Area. A comparative analysis of estimated market values both with and without establishment of the TIF District and the use of tax increments has been SPRINGSTED Page 6