2007.03.19 EDA Packet - Laserfiche WebLink

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City of Hugo, Minnesota Additional inspections have occurred on the remaining buildings in the proposed TIF district in 2006. See Exhibit VII. The City anticipates using tax increment to reimburse itself for a portion of the eligible public improvement costs including acquisition,demolition,site improvements, and related administrative costs. The size of the proposed District makes it difficult to estimate with any certainty the years that various types of development will occur within such District. It is likely that multiple projects will occur through many years of the district. The projects forecasted within the Maxfield study are expected to be fully constructed through 2015. Although the City has been approached by several developers indicating some level of interest in redevelopment of specific parcels within the District, at the time this document was prepared there were no signed construction contracts with regard to the above described development. Section J Findings and Need for Tax Increment Financing In establishing the TIF District,the City makes the following findings: (1) The TIF District qualifies as a redevelopment district-, The City of Hugo retained the services of three experienced City building officials to inspect and evaluate property within the proposed Tax Increment Financing District No 1-2 to be established by the City. The purpose of°the evaluations was to determine if the proposed district met the statutory requirements for coverage and if the buildings met the qualifications required for a,Redevelopment District. The final report has been, prepared by the officials for the City to retain on file in City offices for,public inspection. The,report'cantains the details of the findings summarized below:regarding the substandard gtralifications: • parcels consisting of 79.36 percent of the area of the proposed TIF District are occupied,exceeding the 70 percent coverage test; • 59.3$'percont„of the buildings in the proposed District contain code deficiencies exceeding the 15 percent threshold; • at least 59.38 percent of the buildings are structurally substandard to a degree requiring substantial renovation or clearance, because of defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance, exceeding the more than 50 percent substandard test; and • the substandard buildings are reasonably distributed throughout the geographic area of the proposed TIF District. These findings are described more completely in Exhibit VII. (2) 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 and 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 the district permitted by the TIF Plan. Factual basis: Proposed development not expected to occur.- SPRINGSTED Page 5