10.1. SR 02-05-2018 - Laserfiche WebLink

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The developer is proposing apay-asyougo method for eligible costs as reimbursement. To qualify as a Housing TIF District, at least 20% of the units would be occupied by persons or families with incomes no greater than 50% of county median income or at least 40% of the units would be occupied by persons or families with incomes no greater than 60% of county median income for the duration of the district. Policy Review Staff completed a review of the application in accordance of the city's Tax Increment Financing Policy adopted on December 4, 2017. Based on the Estimated Market Value of the project as calculated by Sherburne County, the project's EW is approximately $3,310,000 or $82,800 per unit. Taxes generated by this project would be approximately $64,277 or $1,610 per unit. Public Purpose The project must achieve one or more of the following public purpose statements: 1. Demonstrate long-term benefits to the community. 2. Retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits through: ■ Diversification of the local economy ■ Significant addition of permanent, high -wage, full-time jobs ■ Addition of jobs attractive to those unemployed or underemployed 3. Significantly increases the city's commercial and industrial tax base. 4. Demonstrates the ability to encourage unsubsidized private development through "spin off" development. 5. Facilitates the development process and achieves development on sites that would not develop "but for" the use of TIF. 6. Removes blight and/or encourages redevelopment of commercial and industrial areas resulting in high quality redevelopment and private reinvestment. 7. Offsets redevelopment costs (i.e. contaminated site cleanup) over and above the costs normally incurred in development.. 8. Aids the implementation of the Mississippi Connections Plan. The proposed project meets public purpose objective #1. TIF District Term According to the city's policy adopted by Council on December 14, 2017, TIF Districts shall be limited to the minimum term necessary to meet the project needs. Only projects exceeding the objectives identified in the policy will be considered to exceed the maximum term allowed for Housing projects of 15 years (25 Max) for Housing Districts. ■ The developer is requesting a term of 25 years of tax increment, which exceeds the general term allowed by the policy for Housing Districts. Policy Considerations 1. Each Project is required to meet the but for test to determine the need for and level of assistance. ■ Springsted completed a butfor analysis and determined without TIF assistance the project would not proceed due to the income restrictions of occupants and insufficient cash flow to finance monthly expenses and debt service. N:\Departments\Community Development\Economic Development\EDA\Administrative\Agenda\EDA Finance Committee Agenda Packets\2018\January 30 2018\4.1 sr Jackson Hills and ER Lodge TIF Application Review.docx