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P44 City of Lino Lakes, Minnesota Section H Property to be Acquired in the TIF District The Authority may acquire and sell any or all of the property located within the TIF District; however, the Authority does not anticipate acquiring any such property at this time. Section I Specific Development Expected to Occur Within the TIF District The project will consist of the construction of four industrial buildings to be used for manufacturing. The first building to be constructed is expected to be 265,000 square feet and completed by 2004. Outlots A, B and C are expected to be 40,000 square feet completed in 2005, 60,000 square feet completed in 2006 and 60,000 square feet completed in 2007, respectively. In addition, a portion of the increment will be used for Lake Drive improvements. The four facilities are expected to be fully constructed in 2007 and be 100% assessed and on the tax rolls as of January 2, 2008 for taxes payable in 2009. At the time this document was prepared there were no signed construction contracts with regards to the above described development. Section J Findings and Need for Tax Increment Financing In establishing the TIF District, the City makes the following findings: (1) The TIF District qualifies as an economic development district; See Section E of this document for the reasons and facts supporting this finding. (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 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 permifted by the TIF Plan; 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: The proposed development is an industrial park including various manufacturing and warehouse uses. The land in the TIF District has been vacant for many years, despite previous efforts by the City to encourage its development (including establishment of a previous tax increment financing district that includes most of these parcels.) The site requires sewer, water and road improvements to accommodate manufacturing and warehouse development, and the cost of those improvements may not, as a practical matter, be passed to proposed developers and users of the site, based on analysis of market conditions in Lino Lakes. In addition, the City has reviewed a pro forma submitted by the initial proposed developer, showing that the cost of land acquisition and public improvements make the proposed development infeasible assuming customary rates of return. 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 vacant for many years. Without installation of the improvements needed to serve the area, SPRINGSTED Page 5