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City of Elk River, Minnesota <br />Baker Tilly Municipal Advisors, LLC Page 5 <br />b. If the proposed development to be assisted with tax increment occurs in the District, <br />the total increase in market value would be approximately $13,770,718, including the value <br />of the building (See Exhibit II). <br /> <br />c. The present value of tax increments from the District for the maximum duration of <br />the district permitted by the TIF Plan is estimated to be $1,613,824 (See Exhibit V). <br /> <br />d. Even if some development other than the proposed development were to occur, the <br />Council finds that no alternative would occur that would produce a market value increase <br />greater than $12,156,894 (the amount in clause b less the amount in clause c) without tax <br />increment assistance. <br /> <br /> (3) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the <br />City as a whole, for development of the Project Area by private enterprise. <br /> <br />Factual basis: The proposed development is the construction of a new industrial facility in the <br />Project Area that is expected to create and retain up to 70 new jobs in the City and State, plus create <br />new tax base for the City and the state. The development meets the City's community development <br />goals in terms of land use, tax base growth and diversification and employment opportunities. <br /> <br /> (4) The TIF Plan conforms to general plans for development of the City as a whole. <br /> <br />Factual basis: The City Council has determined that the development proposed in the TIF Plan <br />conforms to the City comprehensive plan. <br /> <br /> <br />Section K Estimated Public Costs <br /> <br />The estimated public costs of the TIF District are listed below. Such costs are eligible for reimbursement <br />from tax increments of the TIF District. <br /> <br /> <br />Estimated Public Costs Estimated Amount <br />Land/Building acquisition $1,372,140 <br />Site Improvements/Preparation costs $264,520 <br />Utilities $0 <br />Other public improvements $0 <br />Construction of affordable housing $0 <br />Administrative expenses $100,477 <br />Total Estimated Public Costs $1,737,137 <br /> <br />Interest expenses $272,395 <br /> <br />Total Costs $2,009,532 <br /> <br /> <br />The City reserves the right to administratively adjust the amount of any of the items listed above or to <br />incorporate additional eligible items, so long as the total estimated public costs ($2,009,532) do not <br />increase. The City also reserves the right to fund any of the identified costs with any other legally <br />available revenues, such as grants and/or loans, but anticipates that such costs will be primarily financed <br />with tax increments. <br /> <br /> <br /> <br />Page 21 of 64