2019_0225_CCPacket - Laserfiche WebLink

Home

Attachment D 150 EXHIBIT A 151 152 RESOLUTION NO. ___________ 153 154 The reasons and facts supporting the findings for the adoption of the Tax Increment Financing 155 Plan (TIF Plan) for Tax Increment Financing District No. 21 - Colder Products (District), as 156 required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 157 158 1. Finding that the District is a redevelopment district as defined in Minnesota Statutes, 159 Section 469.174, Subd. 10(a)(1). 160 161 The District consists ofthree parcels, with plans to redevelop the area for 162 commercial/industrial purposes. At least 70 percent of the area of the parcels in the 163 District is occupied by buildings, streets, utilities, paved or gravel parking lots or other 164 similar structures and more than 50 percent of the buildings in the District, not including 165 outbuildings, are structurally substandard to a degree requiring substantial renovation or 166 clearance. (See Appendix F of the TIF Plan.) 167 168 2. Finding that the proposed development, in the opinion of the City Council, would not 169 reasonably be expected to occur solely through private investment within the reasonably 170 foreseeable future and that the increased market value of the site that could reasonably 171 be expected to occur without the use of tax increment financing would be less than the 172 increase in the market value estimated to result from the proposed development after 173 subtracting the present value of the projected tax increments for the maximum duration 174 of the District permitted by the TIF Plan. 175 176 The proposed development, in the opinion of the City, would not reasonably be expected 177 to occur solely through private investment within the reasonably foreseeable future: This 178 finding is supported by the fact that the redevelopment proposed in the TIF Plan meets 179 the City's objectives for redevelopment, but that due to the high cost of redevelopment on 180 the parcel currently occupied by a substandard building (including the cost of demolition 181 and environmental remediation), the costs of public and site improvements, and the cost 182 of financing the proposed improvements, this project is feasible only through assistance, 183 in part, from tax increment financing. The developer was asked for and provided a letter 184 and a proforma as justification that the developer would not have gone forward without 185 tax increment assistance. 186 187 The increased market value of the site that could reasonably be expected to occur without 188 the use of tax increment financing would be less than the increase in market value 189 estimated toresult from the proposed development after subtracting the present value of 190 the projected tax increments for the maximum duration of the District permitted by the 191 TIF Plan: This finding is justified on the grounds that the cost of acquiring property with 192 substandard buildings that require demolition, along with the need for environmental 193 remediation and other site and public improvements, add to the total redevelopment cost. 194 Historically, land acquisition and remediation costs in this area have made redevelopment 195 infeasible without tax increment assistance. The City reasonably determines that no other 555858v2 MNI RS275-16