07-22-2019 EDA Packet - Laserfiche WebLink

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• Extension of trunk water main through development area shortening remaining looping needs for southwest area. • Creation of approximately 130 FTE jobs with average hourly wages of $22.50/hour. • Provision of variety of senior housing options not previously provided for in the City by a well-established twin city care provider. The developer has submitted an application for public assistance to offset land, infrastructure, and construction costs related to the senior building. The proposed public assistance would be provided in the form of Tax Increment Financing (TIF). The establishment of a Tax Increment Financing (TIF) District requires the preparation of a TIF plan and review by both the school district and county. The City Council has held seven meeting over the past 6 months to discuss the proposal for assistance. The outcome of those discussions have been incorporated into the development of the TIF plan and contract for private development. Tax Increment Financing (TIF) Plan The TIF plan provides the framework for the use of tax increment for development purposes. The plan includes the statutory authorization, purpose and objectives of the district. The City/EDA are proposing to establish a Housing District. The maximum duration of a housing district is 26 years from the date of receipt of the first increment. The TIF plan is proposing a maximum duration of 9 years. The primary purpose of the district is to aid in the construction of the proposed senior housing facility. Tax increment is intended to be used to offset costs related to land, building and infrastructure costs. The plan includes the City’s findings that, in our opinion, due to extraordinary costs associated with the project including land assembly, infrastructure and building, the project would not be reasonably expected to occur solely through private investment. The estimated public costs eligible for reimbursement from tax increment total $3,701,133. Tax increment revenues generated from the development are expected to equal this amount. Approval of the plan and determination of eligible costs does not obligate the City/EDA to any specific district duration or amount of assistance. No comments were received from Centennial School District or Anoka County. The City Council held a public hearing for the proposed plan on July 8, 2019. No public comment was received. Following the hearing, the City Council adopted Resolution No. 19-85 approving the plan.