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<br />WS – Item 3 <br />WORK SESSION STAFF REPORT <br />Work Session Item No. 3 <br /> <br /> <br />Date: May 6, 2019 <br /> <br />To: City Council <br /> <br />From: Michael Grochala, Community Development Director <br /> <br />Re: 49 & J Redevelopment - Lyngblomsten <br /> <br />Background <br /> <br />The City Council discussed the potential establishment of a Tax Increment Financing <br />district for the Lyngblomsten project at the April 6, 2019 work session. The City Council <br />requested continued discussion regarding the amount of TIF funding and resulting <br />duration of the district. Staff has continued work with the developer to refine the project <br />costs and evaluate the need for requested assistance. <br /> <br />Mikaela Huot of Baker Tilly (formerly Springsted), has provided an updated memo <br />regarding the proposed use of tax increment financing and analysis of the developers <br />request. <br /> <br />As explained in the memo conclusion the “District Framework” would not exceed <br />reimbursable costs of $3,600,000. Based on current estimates this would require 10.5 <br />years of increment. Several factors may reduce the amount assistance provided and/or <br />the term of the TIF district. These factors include but are not limited to: <br /> <br />• Fees/fee credits <br />• Market Value increases <br />• Annual market value inflator <br />• Construction cost <br />• Land sale proceeds <br /> <br />Ms. Huot will be present at the meeting review the memo and recommendations. The <br />next steps in the process will include preparation of the TIF plan, and public hearing. <br /> <br />Requested Council Direction <br /> <br />Staff is requesting Council concurrence with the recommended district framework, <br />direction to prepare the tax increment financing plan and schedule the required hearings <br />for the proposed Lyngblomsten project. <br /> <br />Attachments <br /> <br />1. BakerTilly Memo, dated May 3, 2019