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EXHIBIT A The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District (Housing) No. 28, as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that Tax Increment Financing (Housing) District No. 28 is a housing district as defined in M.S., Section 469.174, Subd. 11. TIF District (Housing) No. 28 consists of one parcel. The development will consist of approximately 44 units of low- and moderate -income rental housing in the City. All or a portion of which will receive tax increment assistance and will meet income restrictions described in M.S. 469.1761. At least 20% (9 units) of the units/homes receiving assistance will have incomes at or below 50% of county median income. Section E of the TIF Plan contains background for the above finding. 2. Finding that the proposed development, in the opinion of the City Council, 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. Finding that the TIF Plan for Tax Increment Financing (Housing) District No. 28 conforms to the general plan for the development or redevelopment of the municipality 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. Finding that the TIF Plan for Tax Increment Financing (Housing) District No. 28 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Development District No. 1 by private enterprise. P 0 V I a I I ®I NATUR�