7.4. SR 09-21-2020 - Laserfiche WebLink

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City of Elk River, Minnesota SPRINGSTED Page 5 redevelopment costs. The City anticipates using tax increments to finance the identified redevelopment costs, including eligible related administrative expenses. Demolition and subsequent construction of the new development on the project site is projected to start in 2017 and is anticipated to occur in phases subject to market. The total project is expected to be fully constructed by December 31, 2018 and be 100% assessed and on the tax rolls as of January 2, 2019 for taxes payable 2020. 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; The City hired LHB to inspect and evaluate the property within the proposed Tax Increment Financing District No. 24 to be established by the City. The purpose of the evaluation was to determine if the proposed district met the statutory requirements for coverage and if the buildings met the qualifications required for a Redevelopment District. A final report will be prepared for the City to retain on file in City offices for public inspection. The report contains the details of the findings summarized below regarding the substandard qualifications:  The TIF District consists of twelve parcels that are occupied so 100 percent of the area of the proposed TIF District is occupied (exceeding the 70 percent coverage test);  66.7 percent (8 of 12) of the buildings in the proposed District contain code deficiencies exceeding the 15 percent threshold;  at least 50 percent of the buildings are structurally substandard to a degree requiring substantial renovation or clearance, because of defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance, exceeding the more than 50 percent substandard test; and  The substandard buildings are reasonably distributed throughout the geographic area of the proposed TIF District. (2) The proposed redevelopment, 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 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 the district permitted by the TIF Plan. Factual basis: Proposed development not expected to occur: