6.1. PCSR 12-21-2021 - Laserfiche WebLink

Home Browse Search

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