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EXHIBIT IV-D BUT FOR ANALYSIS The City and staff has determined that this project is likely the best use of this property and that this type of development is not likely to occur without tax increment financing. Approximately 4 parcels located west of Cleveland Avenue and south of County Road E2 and north of Thom Drive will be developed to provide 60 senior housing units as rental property. The City has promoted proper usage and development in this area and does not anticipate development will occur without public participation. This development will create employment opportunities resulting from the construction of the units and add over $2.1 million of new market value to the City's tax base. Access to nearby city parks is anticipated as a need to address through the Park and Trail System. Previous expense to the City in anticipation of a higher use including water main extension and sanitary sewer line including installation of sewage lift station. (AS MODIFIED DECEMBER 14, 2009) It is found and determined, and it is the reasoned opinion of the City, that: (i) The proposed redevelopment described in the TIF Plan Modification would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. The major purpose of the TIF Plan Modification is to encourage the development of additional housing that is affordable to persons who meet the income limits for such housing under the Act. Historically, affordable housing has not occurred in the City without significant public assistance because of high construction costs and lower revenues produced by affordable rents or sale prices. The use of tax increment resources from the TIF District will offer opportunities for private developers to incorporate more affordable housing in new developments at various locations throughout Development District No. 1, all of which will be deemed to occur within the TIF District by virtue of Minnesota Statutes, Section 469.1763, subd. 2(b). (ii) The Tax Increment Plan Modification conforms to the general plan for the redevelopment of the City as a whole. The Tax Increment Plan Modification was reviewed and commented upon by the City's Planning Commission on December 9, 2009, and was approved by the Commission on that same date. (iii) The Tax Increment Plan Modification will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the redevelopment of the Project by private enterprise. The City has a need for more affordable rental and owner -occupied housing. The tax increment from the TIF District will be used to encourage the private market to offer a range of affordable housing choices and ensure that affordability is maintained over an extended period of time. City of Arden Hills Modification of Tax Increment Financing District No. 3 16