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. . EXHIBIT A RESOLUTION NO. 6594B The reasons and facts supporting the findings l'or the adoption of the Tax Increment Financing Plan (TIF Plan) tar Tax Increment Financing District No. 5 (District), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: I. Finding that the District is an economic developme1/t district as de.lined in AI.S, Section 469.174, Subd. 1]. The District is a contiguous geographic area within the City's Mounds View Economic Development Project, delineated in the TIF Plan, far the purpose of financing economic development in the City through the use of tax increment. The District is in the public interest because it will facilitate developmcnt of an approximate 820,000 sq. n. business campus l'or Medtronic which will discourage commerce, industry. or manufacturing ti'om moving their operations to another state or municipality: it will increase employment in the state, and preserve and enhance the tax base of the state. .., Finding that the proposed development, in the opinion of the 0(\' ('ouncil, lI'ould not rt!aso1/ahly be e.\pected to occur sole~v through private investment lvithin the reasonah~v foreseeahle fitture and that the increased market nllue qj" the site that could reasonah~1" be expected to occur without the ust! of tax increment financing would be less than the increase in the market value estimated to result jl-om the proposed development ajier subtracting the present value of the projected tax incremellfs for the 1//(/ximum duration qj"the District permitted by the TlF Plan. The proposed development, in the opinion of the 0(1', would not reasonab~l' be expected to occur sole~v through private investment ll'ithin the reasonab~v foreseeable fiJture. Several issues are impediments to private development of the site including lack of access, existing wetlands and inadequate roadway and infrastructure. The transportation improvements that have to be constructed alone l'or this development (or any other type of development constructed here) total over $20 million. Because Medtronie is viewed as a major asset to Minnesota's biotech initiatives and large employer within the State, the additional roadway funding that was approved for this project would never have been available to this site, thus not making any other type of development (housing or commercial) financially feasible. In addition, site constraints require the developer to acquire adjacent land to preserve existing wetlands and green space which adds additional costs. Based upon analysis of the developer's proforma the City has determined that a gap needs to be filled through tax increment in order to make the proposed development financially feasible. The City therefore does not believe the proposed corporate office facility is likely to occur without the assistance described in this TIF Plan. (See Appendix F orTIF Plan.) l1/e increased market value 0/ the site that could reasonably he expected to occur lvithout the use of tax in cremeJlf .Iinancing would be less than the increase in market mlue estimated to result .Ii.om the proposed development after suhtracting the present value (~( the projected tax increments for the maximum duration 0/ the District permitted by the TlF Plan: While the property could be sold to another developer for some other use, these scenarios are not feasible in the market due to various constraints mentioned above along with others. First, industrial uses could not meet the market valuation due to the fact that they arc single story in nature (can't get to the same density as office), lack the amenities in design and construction and are traditionally valued at \IS the market value of commercial and office uses. Second, cOlllmercial retail uses have the same restraint in that the market does not allow for ve11ical commereiallrctail development. Although retail can on occasion have a higher per sq/ft value, the lack of the ability to develop vertically limits the overall value developed on the site. Third, the office market is still soft in the metropolitan area and the ability to develop this entire site for ortice use is unlikely as it is unlikely that the oflice sites