RES 17-36 - Laserfiche WebLink

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2.05. The City Council hereby makes the following additional findings: (a) The City Council further finds that the proposed Program Modification, in the opinion of City Council, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary. The specific basis for such finding being: The property on which the proposed Development will occur would not be developed in the reasonably foreseeable future. The demolition and redevelopment costs are higher than for new development and the costs of the public necessary to enable development in this area would make development infeasible. (b) The City Council further finds that the TIF Plan conforms to the general plan for the development or redevelopment of the City as a whole. The specific basis for such finding being: The TIF Plan will generally complement and serve to implement policies adopted in the City's comprehensive plan. The construction of the Development contemplated is or will be in substantial accordance with the existing zoning or any permitted exception for the property and is consistent with other uses in the area. (c) The City Council further finds that the TIF Plan will afford maximum opportunity consistent with the sound needs of the City as a whole for the development of the Development District by private enterprise. The specific basis for such finding being: The Development proposed to occur within the TIF District will afford maximum opportunity for the development of the applicable parcels consistent with the needs of the City and the removal of blighted buildings will increase the potential for future redevelopment. The Development will increase the taxable market valuation of the City. (d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision 3(b)(2), the City Council hereby finds that the increased market value of the property to be developed within the TIF District that could reasonably be expected to occur without the use of tax increment financing is $0 (other than amounts due to inflation), which is less than the market value estimated to result from the proposed development ($2,829,727 approximately), after subtracting the present value of the projected tax increments for the maximum duration of the TIF District (i.e., $731,388 approximately), which is approximately $2,098,339. In making these findings, the City Council has noted that the property has been declining for several years and would likely continue to do so if tax increment financing is not available. Thus, the use of tax increment financing will be a positive net gain to the City, the School District, and the County, and the tax increment assistance does not exceed the benefit which will be derived therefrom. 2.06. The City elects to retain all of the captured tax capacity to finance the costs of the TIF District and the Development District. 3 5023200 JSB ELI 85-52