04-01-2019 Council Packet 2 - Laserfiche WebLink

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City of Lino Lakes, Minnesota Prelim Review of Lyngblomsten Request for TIF Assistance April 1, 2019 Page 3 o ISD 12 and watershed district included o Will change each year with actual rates • Tax rates, class rates and future market values o Rental (Housing TIF District)  1.25% • No annual market value inflator • Net present value o Discount rate of 5.0% o Subject to financing assumptions Tax Increment Revenue Estimates Based on the assumptions outlined above and the City’s past practice for terms of TIF Districts, the projected tax increment revenues that may be generated from the project are shown in the chart below. Housing TIF Estimated Total Taxable Value $28,830,000 Estimated Annual Increment (full buildout) $412,893 Total Gross Tax Increment (6 total years: first collection 2022) $2,477,358 City Retainage (5%) $123,870 Net Amount Available to Development (95%) $2,353,488 Estimated Present Value City Share $95,046 Estimated Present Value Developer Share $1,805,832 Total Remaining Increment (20 years) $8,257,860 The values for the townhomes would not be included within the boundaries of the TIF District and would be included within the taxing entities existing tax base once constructed and on the tax rolls. The construction schedule is assumed to be in conjunction with the senior care campus. In addition, redevelopment of the corner to include new commercial buildings would also enhance the tax bases and not be included in the district. Developer Pro forma But-For Analysis In approving a TIF district and project, the City must make several findings, including the “but for” test: that the proposed development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. The developer has stated the assistance is necessary due to the high costs of