11/12/2003 P&Z Packet - Laserfiche WebLink

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City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota housing would be under construction simultaneously. Tax increment will be used to finance a portion of the redevelopment and construction costs. The project is expected to be fully constructed in 2010 and be 100% assessed and on the tax rolls as of January 2, 2011 for taxes payable in 2012. The project is proposed to be completed in phases over a 7 year period. 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 a redevelopment district; A building condition assessment was completed by Schoell & Madson, Inc. in the fall of 2002 for the proposed site. The report found that at least 70% of the area of the District is occupied, approximately 95 %, and more than 50% of the building area is structurally substandard, approximately 100 %. (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 permitted by the TIF Plan; The proposed development is a mixed use project consisting of commercial, owner- occupied and rental housing in Lino Lakes. The properties in the TIF District have been dilapidated for several years, despite previous efforts by the Authority to encourage its development. The Authority has been trying since 1998 to find a suitable developer for the site. 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 blighted for many years. Without installation of the improvements needed to serve the area, the Authority has no reason to expect that significant redevelopment would occur without assistance similar to that provided in this plan. Therefore, the Authority concludes as follows: a. The city's estimate of the amount by which the market value of the site will increase without the use of tax increment financing is $0, except for a small amount attributable to appreciation in land value. b. If all development which is proposed to be assisted with tax increment were to occur in the District, the total increase in market value would be approximately $72,222,325. SPRINGSTED Page 5