Laserfiche WebLink
City of Elk River, Minnesota <br />Baker Tilly Municipal Advisors, LLC Page 4 <br />include 20% of the units not to exceed 50% of the area median income. The City anticipates <br />using tax increment revenues to finance eligible costs associated with development of the <br />housing project site including primarily soils correction and site development costs, as deemed <br />a barrier to development of the property, as well as related administrative expenses. <br /> <br />The project is expected to start construction in 2022 and continue construction through 2023 <br />and be 100% complete as of January 2, 2024 for taxes payable 2025. <br /> <br /> <br />Section J Findings and Need for Tax Increment Financing <br /> <br />In establishing the TIF District, the City makes the following findings: <br /> <br /> (1) The TIF District qualifies as a housing district. <br /> <br />See Section G of this TIF Plan for the reasons and facts supporting this <br />finding. <br /> <br /> (2) The proposed development, in the opinion of the City, would not reasonably be <br />expected to occur solely through private investment within the reasonably <br />foreseeable future. <br /> <br /> The proposed development is expected to consist of approximately 44 <br />newly constructed housing units. The City’s finding that the proposed <br />development would be unlikely to occur solely through private investment <br />within the reasonably foreseeable future is based on an analysis of the <br />project pro forma and other materials submitted to the City by the <br />developer. These documents have indicated that the costs of constructing <br />the new project, in addition to the significant soils corrections and site <br />improvement costs will result in debt service coverage and returns that <br />are not sufficient to support development, thereby making this housing <br />development infeasible without public assistance. Therefore, the <br />developer has indicated in communications with the City and submitted <br />financial data that the development as proposed would not move forward <br />without tax increment assistance. <br /> <br /> (3) The TIF Plan conforms to the general plan for development or redevelopment of <br />the City as a whole. <br /> <br />The reasons and facts supporting this finding are that the Planning <br />Commission of the City has found this TIF Plan consistent with the <br />general plan for development of the City as a whole and will generally <br />complement and serve to implement policies adopted in the City's <br />comprehensive plan. <br /> <br /> (4) The TIF Plan will afford maximum opportunity, consistent with the sound needs <br />of the City as a whole, for the development or redevelopment of the Project Area <br />by private enterprise. <br /> <br /> Through the implementation of this TIF Plan, the City will provide an <br />impetus for the construction of an apartment project, of which all or a <br />portion of the units will be affordable for occupants at or less than 50% <br />median income. The project will complement the overall housing needs of <br />the City and helps support other private types of development by <br />providing a range of housing opportunities for residents and workers <br />within the City.