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If the housing property is placed into a TIF district, the City, County, and school district would <br />continue to collect the existing property taxes. However, the new increment for the housing <br />property would be used for the project. The antenna property would not be part of the TIF <br />district and would continue to contribute its full property taxes to the property taxing authorities. <br />Commercial/Industrial Development Compared to Housiniz Development <br />Without a specific development plan, it is difficult to calculate a market value and property tax <br />value for this property if it were developed into a commercial/industrial use. However, in order <br />to provide some type of comparison, the market values and property taxes of the other <br />commercial/industrial properties along County Road F were reviewed. While the scale of uses <br />varies significantly from Boston Scientific to Bremer Bank, the general style is professional <br />office building. If a project of similar style but scaled to fit this property were constructed, staff <br />has roughly estimated that the project could have a market value in the neighborhood of $3.1 <br />million. While this is less than the market value of the housing project, multi -family housing and <br />commercial/industrial uses are taxed at different rates. The rough estimate for property taxes <br />collected would be around $77,000 per year. If the City continues to collect 21 percent of the <br />overall property taxes, the City's portion would be $16,170. <br />By comparison, the housing/antenna property would produce an estimated combined property <br />tax value of $14,498 for the City. Although the housing/antenna property tax value is less, <br />Staff s calculations for a commercial/industrial use are speculative. Additionally, the City has no <br />way of knowing when or how this property would ultimately redevelop or the impact on <br />surrounding property uses. <br />Market Value & Property <br />Tax Value Comparison <br />Market <br />Value <br />Property <br />Tax Value <br />Est. City Portion of <br />PropertyTax <br />2009 - Existing* <br />$903,300 <br />$27,580 <br />$5,792 <br />Antenna & Housing Property Combined <br />$5,951,950 <br />$69,040 <br />$14,499 <br />Antenna Property <br />$4517950 <br />$13,790 <br />$2,896 <br />Housing Property** <br />$5,500,000 <br />$55,250 <br />$11,603 <br />Commercial/Industrial Use*** <br />$3,100,000 <br />$77,000 <br />$16,170 <br />*Ramsey County Property Data, **SCI Estimates, ***City Staff Estimates <br />Cottage Villas TIF District <br />As discussed during the work session, the existing Cottage Villas TIF district is set to decertify <br />on December 31 of this year. The TIF district could be extended an additional ten years for a <br />low to moderate income housing project. The housing project can be located outside of the TIF <br />district boundaries. If extended, the Cottage Villas is anticipated to produce about $45,000 per <br />year of increment or about $450,000 over ten years. With the existing $95,000 fund balance, the <br />TIF district could provide up to $545,000 for a low to moderate income housing project. <br />City of Arden Hills <br />Arden Village — Preliminary TIF Review <br />Page 3 of 4 <br />