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. EXHIBIT A <br /> RESOLUTION # <br /> The reasons and facts supporting the findings for the adoption of the Tax Increment Financing <br /> Plan for Tax Increment Financing District No. 3-5, as required pursuant to Minnesota Statutes, <br /> Section 469.175, Subdivision 3 are as follows: <br /> 1. Finding that Tax Increment Financing District No. 3-5 is a redevelopment district as defined in <br /> M.S., Section 469.174, Subd. 10(a)(1). <br /> The District consists of 24 parcels, with plans to redevelop the area for mixed-use redevelopment <br /> purposes. At least 70 percent of the area in the parcels in the District are occupied by buildings, <br /> streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent <br /> of the buildings in the District, not including outbuildings, are structurally substandard to a degree <br /> requiring substantial renovation or clearance (See Appendix F of the TIF plan). <br /> 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably <br /> be expected to occur solely through private investment within the reasonably foreseeable future <br /> and that the increased market value of the site that could reasonably be expected to occur without <br /> the use of tax increment financing would be less than the increase in the market value estimated to <br /> result from the proposed development after subtracting the present value of the projected tax <br /> . increments for the maximum duration of Tax Increment Financing District No. 3-5 permitted by <br /> the Plan. <br /> The proposed development, in the opinion of the City, would not reasonably be expected to occur <br /> solely through private investment within the reasonably foreseeable future: This finding is <br /> supported by the fact that the redevelopment proposed in this plan meets the City's objectives for <br /> redevelopment. Due to the high cost of redevelopment on the parcels currently occupied by <br /> substandard buildings, the limited amount of commercial property for expansion adjacent to the <br /> existing project, the incompatible land uses at close proximity, and the cost of financing the <br /> proposed improvements, this project is feasible only through assistance, in part, from tax <br /> increment financing. The developer was asked for and provided a letter and a proforma as <br /> justification that the developer would not have gone forward without tax increment assistance (see <br /> attachment in Appendix G). <br /> The increased market value of the site that could reasonably be expected to occur without the use <br /> of tax increment financing would be less than the increase in market value estimated to result <br /> from the proposed development after subtracting the present value of the projected tax increments <br /> for the maximum duration of the TIF District permitted by the Plan: This finding is justified on <br /> the grounds that the cost of site and public improvements and utilities add to the total <br /> redevelopment cost. Historically, site and public improvements costs in this area have made <br /> redevelopment infeasible without tax increment assistance. Therefore, the City reasonably <br /> determines that no other redevelopment of similar scope is anticipated on this site without <br /> substantially similar assistance being provided to the development. <br /> A comparative analysis of estimated market values both with and without establishment of the <br /> District and the use of tax increment has been performed as described above. If all development <br /> which is proposed to be assisted with tax increment were to occur in the District, the total <br />