7A, Tax Increment Financing for District #3

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Section 3. Findings for the TIF Plan Modification 3.01 The Council hereby reaffirms the original findings for the TIF District, namely that the when the TIF District was established, TIF District No. 3 was established as a housing tax increment financing district. In addition, the City makes the following findings: (1) 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. 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. 3.02 The TIF Plan Modification is being completed to extend the term of the TIF District to its statutory maximum duration to enable the City to continue in its efforts to support low and moderate income housing opportunities, to increase the budget to reflect the extended term, actual development and associated obligations and bring the TIF Plan into conformance with current Office of State Auditor requirements and legislative changes. The City is not modifying the boundaries of the TIF District. The Council hereby finds that the Modifications are intended to provide an impetus to accomplish certain objectives as specified in the Modifications. 3.03 The TIF Plan Modification conforms to the general plan for development or redevelopment of the City as a whole. The fact supporting this finding is that the TIF Plan Modification will generally complement and serve to implement policies adopted in the City's comprehensive plan. 3.04 The TIF Plan Modification will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Project Area by private enterprise. The facts supporting this finding are that the TIF Plan Modification will help continue the redevelopment by private enterprise that has been stimulated under the original plan for the TIF District. 3.05 The Council further finds the proposed development and redevelopment, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and therefore the use of tax increment financing is deemed necessary. Section 4. Public Purpose