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City of Roseville,, Minnesota 1111 lig i lipliq 11 Jill the tax rolls as • Jan�uary 2, 2013, for ta able� in 2014. At the time th�is d�oicumen�t was prepared th�ere were no signed development coin�tracts with regard�s to, the abolve described development. Section J Findings and Need for Tax Increment Financing In establishing the T'I F' District, the City makes the following findings: (1) T'he TIF District qualifies as a holusing district; in liJ liq 111111 lill I Jill I 1 11 1111= proposed development, in the opinion • the City, wo olt reaso pected to, occur sollely through private in�vestmen�t within the reasoin�ably folreseeable future, and the increased market value • the site ould reaso pected to, • olut the use of tax in�cremen�t would be less than the in�crease in market value estimated to, result from the proposed development after subtractin�g the presen�t value of the projected tax in�cremen�ts for the maximum duration of the T'IF'District permitted by the TIF Plan. T'h�e proposed development is a ren�tal h�olusin�g project coin�sistin�g of the rehabilitation of approiximately 120 units and the n�ew construction • approiximate • Rolseville. All but 12 • the tota ated will be afforda • perso oir below •0% • the area median in�colme. T'h�e City h�as reviewed project information submitted by the proposed developer sh�owin�g th�at the cost of prolvid�in�g lolw-tol-mold�erate incorrI h�olusin�g makes the proposed develop olut some level of assistan�ce. Creating h�igh�-quality affordable h�olusing in the proposed T'IF'd�istrict area entails the acquisition and subdivision of the existing prolperty, colmplete rehabilitation of the existing build�ings, the construction of new affoird�able h�olusing and improlvements to, related infrastructure. Plh�ase 1 and Plh�ase 2 will be financed separately with each p ocation • low-inco • g tax cred�its. Although Plh�ase 1 of the project h�as secured fund�ing from multiple ad�d�itiolnal solurces, Plh�ase 2 fund�ing is nolt anticipated to, leverage as many ad�d�itiolnal fund�ing solurces and sh�olws a financing gap to, be filled with T'IF'. T'h�erefolre, it is believed th�at Plh�ase 2 would nolt happen "But-For" the T'IF'. F'urth�ermoire, the fund�ing entities participating in the Plh�ase 1 financing require the completion of Plh�ase 2 of the Project, which coinstructs the 48 new affbrdable family-sized units. Therefore, we coinclud�e th�at the proposed Project (Phases 1 and 2) would nolt happen "But-F'olr" the T'h�e increased market value of the site th�at could reasoin�ably be expected to, occur with�olut the use of tax in�cremen�t fin�an�cin�g would be less than the in�crease in market value estimated to, result from the proposed development after subtractin�g the presen�t value of the projected tax in�cremen�ts foir the maximum duration of the T'IF'District permitted by the TIF'Plan. Without the T'IF'District, the City h�as no reason to, expect th�at the rehabilitation and n�ew construction would occur with�olut assistan�ce similar to, th�at provided in th�is plan�. [If we are to, agree with the assumptioln�] th�at the proposed project maximizes the site d�en�sity, then it is reasoin�able to, assume th�at no development will occur th�at will create a greater market value than th�at which is proposed in th�is project. Therefore, the City • d�es as foillolws: a. T'h�e City's estirrI • the amolun�t by which the market value of the site will in�crease with�olut the use • $0, beyond a small amo • appreciation in land value. S�PRINGS�TED Page 4,