6B, Public Hearing Proposed TIF District Resolution 2010-081, -082 & -083

Home Browse Search

Appendix G Findings Including But/For Qualificaiions The reasons and facts supporting the findings for the adop#ion of the Tax Increment Financing Plan {TIF Plan} for Ta�c Increment Financing District No. 4{District}, pursuant to Mirmasota Statutes, Sections 469.174 througn 469.1799, all inclusive, as amended {the "Act"), as required by Section 469.i75, Subdivision 3 oi the Ac# are as follows: 1. Finding that Tax 1'ncrement Financing District No. 4 is a renewal and renovation distt�ict as defined in M.S., Section 469.174, Subd. 10 a. The District consists of two parcels and three buildings, with plans to xedevelop the area for senior housing purposes. At least 70 percent of#he area ofthe parcels in the District are occupied by buildings, streets, utilities, pa�ed or graveI parl�ing lots or other similar stnsctures. One building (�nore than 20 percent of the buildings in the Dis4�-ict} is siructurally substandard as defined in the Act, and one building (more than 30 percent of the buildings in the District} requires substantial renovation or clearance to rerno�e existing conditions, such as those existing conditions defined in the Act. (See Appendix P of the TIF Plan.} Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely throughprivate investment wrthin the reasonably foreseeahle future and that the increased rrearket value of the site that could reasanably be expected to occur without the use of tacx fncrement financing would be less than the increase in the market value estimated to result frorn the proposed developmerat after subtracting the present value of the projected tax increments for the maximum duratian of the Dzstrict permitted by the TIF Plan. The proposed develop�nent, in the opinion of the City, would not reasonably be expected to occur solely throughprivate investmentwithin the reasonablyforeseeable future: Tl�is finding is supported by the fact that the redevalopnnent proposed in the TIF Plan m.eets the City's objectives for redevelopment. Tl�ere are higher costs associated with redeveloping the site due to; accommodating existing residents in their current units until the new �acility is constructed; relocating existing residen�.s to the new faciiity; and siie constraints related to topography, grading, demolition and utilities for const�ructing the new facility adjacent to the existing faciiity. In additipn, increased landscapiag wilI be required to pro�ide an adequate buffer and screening from the adjacent single-far►rtily homes. Due to these higher costs of redevelopnnent on the parcels this project is feasible only through assistance, in part, from tax increment financing. The developer was asiced for and prvvided a letter and a proforma as justification that the developer would not i�ave gone �orward wit�out tax increment assistance. {See attachment in Appendix G of #he TIF Plan.) The increased market va7ue of the site that could reasonably be expected to occur without the use of tax incrementfinancingwould be less than the increase in rnarketvalue estimated to resultfrom theproposed developmentafter subtracting the present value ofthe projected tax increments for the maacimum duration of the District permitted by the TIFPlan: The above finding explained why the proposed redevelopment would not likely occur without tax increment assistance. It is possible that sorne redevelopment of the existing senior housing complex wouid go forward without assistaz�ce, but the unique costs of this e�fort {described above} mean that without assistance, any alternative redevelop�nent would necessarily be carried out at a smaller scale, and most likely aver a longer period of time. It is impossible to predict what an alternative market value would be if no tax increnraent assistance were pro�ided, but it is certain that the alterr►ative redevelopment would produce significantly less value than the comprehensive, high quality development that is proposed under the TIF Plan. There is no reasonable likelihoad that an aIternate, unassisted de�elopment vvauld add as much as$9,972,625 in market value (which is the Appendix �-�