Resolution 9498 - Laserfiche WebLink

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EXHIBIT A The reasons and facts supporting the findings for the adoption ofthe Tax Increment Financing Plan for Tax Increment Financing District No. 1-7 (Villas ofMounds VievV).asrequired pursuant b»Minnesota Statutes, Section 469]75.Subdivision 3are aofollows: [ Finding that Tax Increment Financing District No. /-7 (Villas of Mounds View) is a housing district as defined in M.S., Section 469.774, Subd. 77. Tax Increment Financing District No. l'7(Villas ofMounds View) consists offour (4)parcels. The development will consist of construction ofl2C) units ofaffordable rental housing, all or portion of which will receive tax increment assistance and will meet incoOlg restrictions described iOM.S.469./76[Atleast 40percent Ofthe units receiving assistance will have incomes atorbelow 5Opercent ofarea median income, 2 Finding that the proposed development, /n the opinion of the C/hr Council, would not reasonably beexpected /boccur solely through private investment within the reasonably foreseeable future. The proposed development, in the opinion of the City, would not reasonably beexpected hnoccur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the development proposed inthis plan contains affordable, housing units that meet the [ity'sobjectives for development. The cost ofland acquisition and construction are the same for workforce housing units asthey are for market rate projects. The decreased rental income from the affordable units, means there isless cash flow available to service the operating and debt expenses for the project. The leaves a gap in funding for the project. The need tooffset this reduction in rents for the affordable housing units makes this housing development feasible only through assistance, in part, fro[n tax increment financing, The developer was asked for and provided aletter and apro forma as justification that the project would not have gone forward without tax increment assistance.