6.1. SR 11-01-2004 - Laserfiche WebLink

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EXHmIT A RESOLUTION NO. The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Downtown Phase I Tax Increment Financing District No. 22, as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that Downtown Phase I Tax Increment Financing District No. 22 is a redevelopment district as defined in M.S., Section 469.174, Subd. 10. The District consists of I 0 parcel(s), with plans to redevelop the area for commercial/residential purposes. At least 70 percent of the area in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings in the District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance (See Appendix D of the TIP plan). The City Council has had an opportunity to review the findings in the report attached as Appendix D of the TIP Plan regarding the condition of buildings, streets, utilities, parking lots, etc. and hereby ratifies the findings made therein. 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 Downtown Phase I Tax Increment Financing District No. 22 permitted by the 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 this plan meets the City's objectives for redevelopment. Due to the high cost of redevelopment on the parcels currently occupied by substandard buildings, the limited amount of commerciallindustrial property for expansion adjacent to the existing project, the incompatible land uses at close proximity, and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, fTom tax increment financing. The developer was asked for and provided a proforma as justification thatthe developer would not have gone forward without tax increment assistance (see attachment in Appendix H of the TIP Plan). This project consists off our developments. The first two are on what is referred to as the "Jackson Block". These developments consist of 32 units of rental housing and approximately I 0,000 square feet on commercial space. The next development is referred to as the "Bluff Block" . These developments consist of 60 units of for-sale housing and approximately 10,000 square feet of office space. The first phase requires demolition of all the existing structures, the relocation of a public parking lot and construction of parking ramps. The City has analyzed a proforma submitted by the developer, which, in the City's opinion, demonstrates that development at the proposed density would not be feasible without the tax increment assistance provided under this plan. In addition the Developer has represented that no portion of the redevelopment would be feasible without redevelopment of this entire are. The increased market value of the site that could reasonably be expected to occur without the use of tax