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City of Elk River, Minnesota Section I Specific Development Expected to Occur Within the TIF District • As of the date of this TIF Plan, anticipated development within the TIF District consists of several mixed-use projects. Commercial development on approximately 70 acres of the TIF District will encompass approximately 1.5 million square feet of retail space and approximately 300,000 square feet of restaurant and convenience store space. Construction is tentatively scheduled for 1998 and 1999. Approximately 40 acres of the TIF District is currently zoned for an industrial business park. At this time no specific development has been scheduled for this site, although it is anticipated that 300,000+ square feet of industrial space will be constructed over the next 2-5 years. At the time this document was prepared, there were no signed development agreements or construction contracts with regard to any of the anticipated development described above. As such development occurs and contracts are signed, the City will periodically update this document to reflect such information. Section J Findings and Need for Tax Increment Financing In establishing the TIF District, the City makes the following findings: (1) The TIF District qualifies as a redevelopment district; See Section E of this document for the reasons and facts supporting this finding. 110 (2) 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, and the increased market value of the site that could reasonably be expected to occur without the use of tax increment would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan; The reasons and facts supporting this finding are that the developer has represented to the City that it would not undertake the proposed development without the assistance of tax increment financing. Private investment will not finance these development activities because of prohibitive costs. It is necessary to finance these development activities through the use of tax increment financing so that other development by private enterprise will occur within the Project Area. A comparative analysis of estimated market values both with and without establishment of the TIF District and the use of tax increments has been performed as described above and is shown in Exhibit V. This analysis indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the TIF District and the use of tax increments. • SPRINGSTED Page 4