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EXHIBIT A <br />The reasons and facts supporting the findings for the adoption of the Tax <br />Increment Financing Plan for Tax Increment Financing District No. 1-7 (Villas <br />of Mounds View), as required pursuant to Minnesota Statutes, Section <br />469.175, Subdivision 3 are as follows; <br />7. Finding that Tax Increment Financing District No. 7-7 (Villas of Mounds <br />View) is a housing district as defined in M.S., Section 469.774, Subd. 77. <br />Tax Increment Financing District No. 1-7 (Villas of Mounds View) <br />consists of four (4) parcels. The development will consist of <br />construction of 120 units of affordable rental housing, all or a portion of <br />which will receive tax increment assistance and will meet income <br />restrictions described in M.S. 469.7767. At least 40 percent of the units <br />receiving assistance will have incomes at or below 60 percent of area <br />median income. <br />2. Finding that the proposed development, in the opinion of the City <br />Council, would not reasonably be expected to occur solely through <br />private investment within the reasonably foreseeable future. <br />The proposed development in the opinion of the City, would not <br />reasonably be expected to occur solely through private investment <br />within the reasonably foreseeable future: This finding is supported by <br />the fact that the development proposed in this plan contains affordable, <br />housing units that meet the City's objectives for development. The cost <br />of land acquisition and construction are the same for workforce housing <br />units as they are for market rate projects. The decreased rental income <br />from the affordable units, means there is less cash flow available to <br />service the operating and debt expenses for the project. The leaves a <br />gap in funding for the project. The need to offset this reduction in rents <br />for the affordable housing units makes this housing development <br />feasible only through assistance, in part, from tax increment financing. <br />The developer was asked for and provided a letter and a pro forma as <br />justification that the project would not have gone forward without tax <br />increment assistance. <br />A-1 <br />DOCSOPENWU205\52\763645.v2-11/18/21 <br />