Res_11498 - Laserfiche WebLink

Home

i EXHIBIT A RESOLUTION NO. 11498 The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan ("TIF Plan") for Tax Increment Financing District No. 20 - McGough Redevelopment ("District"), as required pursuant to Section 469.175, Subdivision 3 of the TIF Act, are as follows: 1. Finding that the District is a redevelopment district as defined in Section 469.174, Subd. 10 of the Act. The District consists of one parcel, with plans to redevelop the area for commercial/industrial purposes. At least 70 percent of the parcel is occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures, and the building on the parcel is structurally substandard to a degree requiring substantial renovation or clearance. (See Appendix F of the TIF Plan.) 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably 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 District permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the redevelopment proposed in the TIF Plan meets the City's objectives for redevelopment, but that due to the high cost of renovating an existing building from an industrial use into an office use (and of retaining architecturally significant elements, such as the original ceiling trusses), the cost of demolition and remediation on site and on portions of the existing structure, the cost to complete an addition on the building, and the costs of other public and site improvements, this project is feasible only through assistance, in part, from tax increment financing. The developer has provided a letter and a proforma as justification that the developer would not have gone forward without tax increment assistance. (See attachment in Appendix G of the TIF Plan.) 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 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 District permitted by the TIF Plan: This finding is justified on the grounds that the cost of renovating or demolishing an existing industrial building, required site