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EXHIBIT A FINDINGS The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 22: Twin Lakes II (the "TIF District"), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, are as follows: 1. Finding that the TIF District is a redevelopment district as defined in Minnesota Statutes, Section 469.174, Subd. 10. The TIF District consists of seven parcels. The City's consultant, LHB, has performed an inspection of the parcels entitled Report of Inspection Procedures and Results for Determining Qualifications of a Tax Increment Financing District as a Redevelopment District, dated July 29, 2019, and has determined that 100 percent of the area of the parcels in the TIF District are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures, which exceeds the 70 percent requirement, and that 62.5 percent of the buildings located within the TIF District are structurally substandard as defined in Minnesota Statutes, Section 469.174, subd. 10, which exceeds the 50 percent requirement. Appendix D of the TIF Plan contains background for the above finding. 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. 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: The TIF District is expected to include three multifamily housing facilities (224 affordable units, 117 market-rate units, and 252 affordable units for occupancy by seniors) as well as approximately 40,000 square feet of medical office and 56,200 square feet of commercial retail space. Due to the high cost of building new housing in the City, construction of the proposed multifamily housing facilities is feasible only through assistance, in part, from tax increment financing. In addition, the poor soils and environmental condition of the parcels will require significant expenditures for remediation, which constitutes an extraordinary cost preventing any non-subsidized development from taking place within the TIF District. The developers were asked for and provided pro forma documentation as justification that they would not have moved forward with development of these uses without tax increment assistance. 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 TIF District permitted by the TIF Plan: The parcels within the TIF District have been used for industrial and vehicle storage uses, or have constituted vacant commercial buildings. Given the high