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St. Anthony Housing & Redevelopment Authority Lowry Grove 14 Appendix C: Findings Including But/For Qualifications The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (TIF Plan) for Lowry Grove (the “District”), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that Lowry Grove is a redevelopment district as defined in M.S., Section 469.174, Subd. 10. The District consists of two parcels and vacant right-of-way, with plans to redevelop the area for the construction of approximately 489 units of apartments, of which Phase I will consist of a 135-unit senior apartment with independent living, assisted living and memory care units. Phase II will consist of approximately 129 units of senior assisted living and Phase III will consist of approximately 225 units of market rate apartments. Parcels consisting of 70 percent of the area of the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings in the District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. (See Appendix D of the TIF Plan.) 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that 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 the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of Lowry Grove permitted by the TIF Plan. 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: This finding is supported by the fact that the redevelopment proposed in the TIF Plan meets the City's objectives for redevelopment. Due to the high cost of redevelopment on the parcels currently occupied by substandard buildings, lack of adequate/updated utilities, environmental remediation costs and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. The City has reviewed several development proposals for the area and all of them have requested TIF for the development. The developer for Phase I was asked for and provided a letter and a pro forma as justification that the developer would not have gone forward without tax increment assistance. 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 District permitted by the TIF Plan: This finding is justified on the grounds that the cost of land acquisition, demolition, environmental remediation, site and public improvements and utilities add to the total redevelopment cost. Historically, construction costs, site and public improvements costs in this area have made redevelopment infeasible without tax increment assistance. The City reasonably determines that no other redevelopment of similar scope is anticipated on this site without substantially similar assistance being provided to the development. Therefore, the City concludes as follows: 22