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Appendix G Findings Including Bui/For Qualifications The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (TIF Plan} far Tax Increment Financing District No. 4(District), pursuant to Minneso#a Statutes, Sections 469.17� t�rough 469.1799, all inclusive, as amended (the "Act"}, as r�c�uiz-�d by Section 469.175, Subdivision 3 of the Act are as follows: 1. Findtng that Tax Increment Financang Distract No. 4 is a renewal and renovation disirict as defined in M.�S., Section 469.174, Subd. 10 a. The District consists of two parcels and three buildings, with plans to redevelop the area for senior housing �urposes. At least 70 percent of the area of the parcels in the Districi are accupied by buildings, streets, utilities, paved or gravel parking lots ar other similar structures. One building (more than 20 percent ofthe buildings in the District) is structurally substandard as defined in the Act, and one building (more than 30 percent of the buildings in the DisYrict) requires substantial renovation or clearance to remove existing conditions, such as those existing condiiions defined in the Act. (See Appendix F of the TIF Plan.} 2. Finding that the proposed development, in the opinion af the City Council, would not reasonably be expected to occur solely through private invest�nent within the reasanably foreseeable future and that the increased market value of the site that could reasonably be expected to occur wzthout the use of tax increment financing would be less than the inerease in the market value estimated to result frorn the proposed developrnent after subtracting the present value of the projected tax increnzents for the maximum duration of the District permttted by the TIFPlan. The proposed development, tn the opinion of the Ciry, would not reasonably be expected to occur solely through private investment wzthin the reasonablyforeseeable future: This finding is supported by the fact that the redevelopment proposed in the TIF Plan meets the City's objectives for redevelopment. There are higher costs associated with redeveloping the site du� to; accommodating existing residents in their current units untiI the new facility is constructed; relocating existing residents to the new facility; and site constrain#s related to topagraphy, grading, demolition and utilities for constructing the new facility adjacent to the existing facili#y. In addition, increased landscaping wil] be required to provide at� adequaie buffer and screening from the adjacent single-family homes. Due to these higher costs of redevelopment on the parcels this project is feasible only through assistance, in part, from tax increment financing. The increased market value of the site that could reasonably be expected to occur without the use of tax inerementfinancing would be less than the increase in market value estimated to resultfrom the proposed development after subtt'acting thepresent value of the proj ected tax incrernents for the maximum duration of the Districtpermitted by the TIFPIan: The abave fnding explained why the proposed redevelopment wouId not iikely occur without ta� inerement assistance. It is possible that some redevelopment of the existing senior housing complex would go forward without assistance, but the unique costs of this effort (described above} mean that wit�iout assistance, any alternati�e redevelopment would necessarily be carried out at a smaller scale, and most likely over a�onger period of time. It is impossible to predict what an alternative market value would be if no tax increment assistance were provided, but it is certain that the alterriative redevelapment would produce significantIy iess value than the comprehensive, high quaiity de�elopment that is proposed under the TIF Plan. There is no reasonable likelihood that an a�ternate, unassisted development would add as much as $9,972,625 in market value (which is the alternate threshold noted below). Appendix G-1