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31 ■ 40-60 test: 40 percent of the units are occupied by individuals whose incomes are 32 60 percent or less of the area median income 33 ■ 50-80 test: 50 percent of the units are occupied by individuals whose incomes are 34 80 percent or less of the area median income 35 36 In order to create a TIF district, the City must follow the process that is prescribed in Minnesota 37 Statute 469.175. The following is the list of required tasks and the date accomplished. 38 • Set Public Hearin� Date: Apri120, 2009 (Resolution 10703) 39 • Notification to Countv Commissioner: April 8, 2009 40 • Impact letter and draft TIF Plan to Countv and School District: May 14, 2009 41 • Public hearin n� otice: June 2, 2009 (published in Roseville Review) 42 • Hold public hearin�: June 15, 2009 43 • Adopt TIF plan: July 13, 2009 (tentative) 44 45 Springsted, the City's financial consultant, has reviewed the detailed project information 46 provided by the developer to determine if the project qualifies as a housing TIF district and 47 developed a TIF plan for the proposed district, including the "but-for" test and financial 48 projections. (See Attachment A to review the TIF Plan.) 49 50 A. Housin� District Qualification: Springsted has determined that the 168 housing units 51 within proposed TIF District No. 18 will meet either meet the 20-50 test or the 40-60 test 52 with at least 20 percent of the units being affordable to persons at 50 percent of area 53 median income or 40 percent of the units being affordable to persons at 60 percent of 54 median income. The City will require formalization of the affordability mix as part of a 55 future development agreement. 56 57 B. But-For Test: Springsted has conducted the "but-for" analysis for this project and has 58 determined that it meets both statutory requirements. They conclude that the proposed 59 development would not reasonably be expected to occur solely through private 60 investment within the reasonably foreseeable future, and the increased market value of 61 the site that could reasonably be expected to occur without the use of tax increment 62 would be less than the increase in market value estimated to result from the proposed 63 development after subtracting the present value of the proj ected tax increments for the 64 maximum duration of the TIF District permitted by the TIF Plan. 65 66 C. Financial Projections: The 2009 assessed value for the Har Mar Apartments is 67 $5,000,000. Based on the rehabilitation of the 120 one-bedroom units in the five existing 68 buildings and the construction of the new 48 two- and three-bedroom units, the estimated 69 market value is $12.2 million, which is based on a preliminary review of proposed 70 development by a Ramsey County assessor. The $7.2 million increase in market value 71 translates into approximately $2.2 million of potential increment over the life of the 72 district. 73 74 If the City Council approves TIF District No. 18, the City will negotiate a development 75 agreement with Aeon on the terms for use of the funds generated in the district. As the developer 76 will not have a full understanding of its true financial gap until this project is awarded tax credits Page 2 of 3