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Development District and the TIF District by private enterprise because they will enable the City to provide and finance suitable and necessary public inducements. 2.03. The Council further finds that the Plans are intended and in the judgment of the Council their effect will be to promote the public purposes and accomplish the objectives specified in the Tax Increment Financing Plan for the TIF District and the Development Program for Development District No. 1. 2.04. For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision 3(2), the Council hereby finds that the increased market value of the TIF District that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the SoftPac Development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the Tax Increment Plan, which for these purposes is an assumed period of 9 years of increment. In this regard, reference is hereby made to Section Y.2. of the Plans. In making these findings, it is noted that the subject property is currently undeveloped and that it would be unlikely or at least uncertain that an alternate project would appear for the subject site. Thus, the Council cannot reasonably assume or determine that there would be an increase in the market value of the site without the aid of tax increment financing and the completion of the new development. In addition, based on current estimates, it appears that the market value for property tax purposes upon completion of the development would be approximately $3,869,000; subtracting from that number $763,000 (the current market value of the property) yields a net increase in the market value of $3,106,000. The present value of the tax increment is estimated to be $843,511, using a present valuing factor of 8.00%, which is substantially less than the projected $3,106,000 net increase in market value. Thus, the SoftPac Development on these analyses will be a positive net gain to the City, the School District, and the County, and the tax increment assistance does not exceed the benefit which will be derived therefrom. 2.05. Pursuant to the Tax Increment Plan for the TIF District, a 10% "qualifying local contribution" will be made respecting the TIF District, and the LGA/HACA offsets will not apply. The qualifying contributions are expected to come from generally available, non-TIF funds of the County, State, and/or City, including payment of eligible costs of the Development Program for the Development District. 1198600.2 3