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City of Lino Lakes and Lino Lakes Economic Development Authority <br />Baker Tilly Municipal Advisors, LLC Page 6 <br />The project to be constructed within TIF District No. 1-14 requires significant investment to be <br />financially feasible. To commence construction of the new industrial project, assistance with <br />financing a portion of those costs will be necessary. The financial assistance provided under this TIF <br />Plan will help offset the costs of the improvements. Given the nature of this project, there is no <br />reasonable expectation of any development occurring that would generate as much market value <br />increase as is estimated to be generated by the proposed development by the new business. <br />Therefore, the City has concluded that substantial development at this particular site--and hence <br />any significant increase in market value--is not reasonably expected to occur unless the City <br />provides tax increment assistance as described in this Tax Increment Plan. <br /> <br />To summarize the basis for the City’s findings regarding alternative market value, in accordance with <br />Minnesota Statutes, Section 469.175, Subd. 3(d), the City makes the following determinations: <br /> <br />a. The City's estimate of the amount by which the market value of the site will increase <br />without the use of tax increment financing is $0 (for the reasons described above), except <br />some unknown amount of appreciation. <br /> <br />b. If the proposed development to be assisted with tax increment occurs in the District, <br />the total increase in market value would be approximately $35,960,717, including the value <br />of the building (See Exhibit II). <br /> <br />c. The present value of tax increments from the District for the maximum duration of <br />the district permitted by the TIF Plan is estimated to be $2,692,001 (See Exhibit V). <br /> <br />d. Even if some development other than the proposed development were to occur, the <br />Council finds that no alternative would occur that would produce a market value increase <br />greater than $33,268,716 (the amount in clause b less the amount in clause c) without tax <br />increment assistance. <br /> <br /> (3) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the <br />City as a whole, for development of the Project Area by private enterprise. <br /> <br />Factual basis: The proposed development is the construction of new large buildings that will be <br />a mix of warehousing, manufacturing and distribution in the Project Area that is expected to retain <br />existing jobs as well as create new jobs in the City, plus create new tax base for the City and the <br />State. The development meets the City’s economic development goals in terms of tax base <br />expansion, job retention, and wage levels. <br /> <br /> (4) The TIF Plan conforms to general plans for development of the City as a whole. <br /> <br />Factual basis: The City Council has determined that the development proposed in the TIF Plan <br />conforms to the City comprehensive plan. <br /> <br /> (5) The City is electing the method of tax increment computation set forth in Minnesota <br />Statutes, Section 469.177, Subdivision 3(b) (see Section P). <br /> <br /> <br />Section K Estimated Public Costs <br /> <br />The estimated public costs of the TIF District are listed in the table on the following page. Such costs are <br />eligible for reimbursement from tax increments of the TIF District.