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EXHIBIT A RESOLUTION NO. 98 - _81_ The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 19 ("District No. 19") as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 ar~ as follows: Finding that the District No. 19 is a '~edevelopment district" as defined in Minnesota Statutes, Section 469.174, Subdivision 10. District No. 19 consists of five parcels of property. Parcels consisting of 70 percent of the area of the District are occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings, not including outbuildings, are structurally substandard (within the meaning of Minnesota Statutes, Section 469.174, subd. 10(b)) to a degree requiring substantial renovation or clearance, which finding is made based, in part, upon internal inspections of such buildings. Finding that the proposed development, in the opinion of the Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present.value of the projected tax increments for the maximum duration of the district permitted by the plan. Due to the high cost of redevelopment on the parcel and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. A comparative analysis of estimated market values both with and without establishment of Tax Increment Financing District No. 19 and the use of tax increment has been performed as described above. If all development which is proposed to be assisted with tax increment were to occur in District No. 19, the total increased market value would be up to $36,000,000. It is the Council's finding that no development with a market value of greater than $23,450,013 would occur without tax increment assistance in this district within 25 years. This finding is based upon evidence from general past experience with the high cost of redevelopment of the type of uses found in District No. 19. Finding that the Tax Increment Financing Plan for District No. 19 conforms to the general plan for the development or redevelopment of the municipality as a whole. The Tax Increment Financing Plan for District No. 19 has been reviewed by the Planning Commission on June 23, 1998, and been found to conform to the Comprehensive Plan and general development plan of the City.