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E>::> <br />>:�[ >. <br />'<�:�` <br />�� % <br />��� � <br />% <br />��� <br />� ����m <br />Sue Iverson — Finance Director <br />Stacie Kvilvang <br />August 30, 2010 <br />Proposed TIF District — Presbyterian Homes Redevelopment <br />Presbyterian Homes has approached the City about its proposed redevelopment of portions of their <br />facilities on their existing site. They have inquired about the possibility of the City providing Tax <br />Increment Financing (TIF) to offset some of their costs associated with the redevelopment. <br />Presbyterian Homes will be submitting a formal application to the City along with the required <br />application fee of $2,000 (non refundable) and $10,000 escrow fee to cover costs. As stated in the <br />application, to the extent that the $10,000 is not adequate to cover all costs associated with creation of <br />the TIF district and development agreement, the developer is required to submit payment for these <br />additional costs upon noti�cation from the City. At this time, it is estimated that the costs will range <br />between $30,000 and $40,000 (excludes any estimate for legal costs associated with conduit <br />financing requests). <br />Based upon the existing site and qualifications required to create a district, we recommend that the <br />City Council consider creating a renewal and renovation district, which has a sixteen (16) year term. <br />Iii �i'C�.�Cp �� i��.1.�.i�� �O�' �i11S ��J� �� d.IS�Y'IC�, ��� C1�y I11US� �111C�.: <br />1. That 70 % of the area of the district is occupied by buildings, streets, utilities, paved or gravel <br />parking lots, or other similar structures; <br />2. 20 percent of the existing structures are structurally substandard; and <br />3. 30 percent of the other buildings require substantial renovation or clearance to remove exiting <br />conditions <br />In order to comply with the �rst condition, only 15 percent of each parcel in the district needs to be <br />occupied. Since this district is going to be comprised of one parcel, 15 percent of that parcel needs to <br />be occupied by the above referenced items (which is the case). For purposes of determining <br />compliance with item #2, a building is considered to be structurally substandard if the cost to bring it <br />lnto compliance with current building code costs more than 15 percent to construct a new structure of <br />the same square footage and type on the site. <br />We recommend that the City contract with a third-party entity to cornplete the required inspections to <br />make the above referenced �ndings and complete a report for the City. It is estimated that the cost to <br />have the inspection and accompanying report completed with be approximately $6,000 (included in <br />the estimate above). <br />���� ������ ������� ����� <br />�� <br />� �������i�;, i��l ��1 � �m11 �� <br />�' LEADERS IN PUBLIC FINANCE ������ ����-���`µ���� <br />���: ��� ����µ���� <br />�k��i��r����t���r���r��a��r� <br />