7.2 SR 01-03-2022 - Laserfiche WebLink

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Prior to establishing a tax increment financing district, there are findings that need to be made by the City that include: 1) determination that the project qualifies as a TIF district and 2) determination that the project as proposed would not proceed without public assistance (meeting the "but -for" test). When reviewing requests for financial assistance it is important to understand how the level of financial assistance would impact the ability of the project to proceed as proposed and maximize new value created on the current project site. Process for TIF District Establishment A TIF District is established within a Project Area. The City is considering the establishment of a new TIF District to facilitate development of the property to include new residential housing, of which a portion would be affordable. A map showing the boundaries of the proposed Tax Increment Financing District No. 28 (Jackson Hills Phase II Project) and Development District No. 1 (Project Area) are included as Exhibit I in the draft TIF Plan. Pursuant to MN Statutes 469.175, Subd. 3, the City needs to make certain findings that include the following: 1. The TIF District qualifies as a housing district; 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; 3. The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for development of the Project Area by private enterprise; and 4. The TIF Plan conforms to general plans for development of the City as a whole. Next Steps The potential terms of financial assistance between the City and developer are still being discussed and are determined based on financial need, feasibility and capacity. The developer has requested approximately $850,000 to assist with significant soils correction and site development costs. The developer is in the process of updating those cost estimates based on revised plans for soils correction needs and dewatering of the site. The Contract for Private Development between the City and developer will include the provisions of TIF financial assistance and include the recommended level to be provided through tax increment financing based on the actual amounts of soils correction and site development costs. Thank you for the opportunity to be of assistance to the City of Elk River. Please contact me at 651-223-3036 or mikaela.huota-bakertilly.com with any questions or to discuss. The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2018 Baker Tilly Virchow Krause, LLP