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� <br />� <br />� <br />� <br />� <br />� <br />� <br />City of Rosevilie, Minnesota <br />Primary Impacts <br />If the fiscal disparities contribution comes from inside the TIF district, less tax <br />increment revenue results, which restricts the level of funding for the project. <br />If the fiscal disparities contribution comes from outside the TIF district, the <br />converse is true, increasing the level of tax increment revenues. <br />Secondary Impacts <br />When the fiscal disparities contribution is made from outside the TIF district, an <br />amount equal to the amount the TIF district would have contributed, must come <br />from other commercial-industrialproperties within the City. <br />� The potential exists for City tax rate increases dependent on the relative <br />magnitude of the new development with respect to the City's total tax <br />capacity. When the fiscal disparities contribution is made from outside of <br />the TI F district, the City's total gross tax capacity is reduced by both the <br />TIF captured tax capacity and the fiscal disparities contribution. This can <br />lead to a potentially higher City tax rate. <br />Y Each development is unique; therefore, the impact of selecting Option A <br />� or Option B needs to be balanced with the benefits achieved by the <br />.+ project. Such benefits to the community should be weighed against the <br />impact, and thereafter a determination could be made regarding whether <br />• the investment is worth the cost. <br />� <br />� <br />� <br />� <br />� <br />.; � <br />� <br />.� <br />� <br />3. The Market <br />For every development, there is a defined demand for the type of product which <br />will be produced, whether that product is office, apartment, warehouse, or retail <br />space, or an owner-occupiedfor-sale residential home. This demand is driven by <br />a number of factors, and arguably the most important is location. A prime location <br />drives a higher market rate that a developer is willing to pay for land upon which to <br />build the project. <br />Environmental conditions notwithstanding, the demand for different types of <br />development products is not generally influenced by what currently occupies the <br />site. Whether the redevelopment site itself is occupied by an office building or an <br />aging industrial complex, neither have a significantbearing on the amount which a <br />developer is willing to pay for the land; however, should the site be surrounded by <br />other substandard uses or underutilized buildings, their influence may be great. <br />This poses a significant challenge to redevelopment, because the costs of <br />acquisition, demolition, relocation, and infrastructure are typically offset primarily <br />by what a developer is willing to pay for the land. <br />I n Twin Lakes, each parcel's current redevelopmentpotential is influenced by what <br />is adjacent. This challenge is magnified in the early stages of any large scale <br />redevelopment, but as each new project is constructed on a parcel, the value of <br />the remaining properties is enhanced. Often the greatest assistance is necessary <br />in the earliest stages of a multi-phase redevelopmentproject. The construction of <br />new projects in the redevelopment area causes appreciation of land prices, <br />creating a greater revenue source to pay for acquisition, demolition and relocation <br />costs. However, appreciation of land prices for the remaining projects may make <br />them unaffordable to the developer or the City unless site control is maintained. <br />SPRINGSTED Raq� 11 <br />