2013-01-02 CC Packet - Laserfiche WebLink

Home Browse Search

TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 1 -7 ARTICLE III - TAX INCREMENT FINANCING PLAN SECTION 3.01 STATUTORY AUTHORITY Tax Increment Financing (Economic Development) District No. 7 and this TIF Plan are established under the authority of the TIF Act (Minnesota Statutes 2011). For future reference in administering the TIF Plan, a copy of the TIF Act (2012) will be included in the TIF record book for TIF District 7. SECTION 3.02 PLANNED DEVELOPMENT 3.02.1 Project Description The City has been working to attract and retain businesses and new development into the area in and around the business district. The proposed development consists of the construction of an approximately 20,000 square foot building for the purpose of manufacturing. 3.02.2 City Plans and Development Program In addition to achieving the objectives of the Development Program, the proposed development is consistent with and works to achieve the development objectives of the City. The TIF Plan for the TIF District conforms to the general plan for development of the City as a whole. The reasons and facts supporting this finding are that the City Council has reviewed the plans for the proposed development and found them to be consistent with the goals of the Comprehensive Plan and zoning ordinances and serves to promote the City's development objectives for economic development. 3.02.3 Land Acquisition The acquisition of land by the City within the TIF District is anticipated. The City plans to acquire Lot 3, Block 1, Royal Industrial Park. 3.02.4 Development Activities As of the date of approval of this TIF Plan, the Authority anticipates that activities proposed in this TIF Plan may be subject to contracts. The City anticipates entering into a contract with a Developer to provide tax increment financing assistance for land acquisition and site improvements. 3.02.5 Need for Tax Increment Financing In the opinion of the City, the proposed development would not reasonably be expected to occur solely through private investment within the foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan. The reasons and facts supporting this finding include the following. The proposed development requires the Developer to vacate space in an existing building they presently lease space. There space requirements have expended past the amount available within their current facility. The comparative analysis of estimated market values both with and without establishment of the TIF District and the use of tax increments has been performed as described above and is shown in Exhibit I. This analysis indicates that the increase in estimated market value of the proposed development (less the present value of the projected tax increments for the maximum duration permitted by the TIF Plan) exceeds the estimated market value of the site prior to the ADOPTED (-1-112) 4