Orono Woods Sr Hous Project Financial Package

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Subsection 1-2. Statutory Authority The HRA Act authorizes the Authority,upon certain public purpose findings by the Authority and City, to establish and designate housing, development and redevelopment projects within the City and to establish, develop and administer redevelopment plans therefore to meet the needs and accomplish the public purposes specified in Statement of and Finding of Public Purpose. In accordance with the purposes set forth in the HRA Act, the Authority has established Project Area. The Project Area shall be designated as Housing Project No. 1 contain the area described in Subsection 1.15. The Tax Increment Financing Act authorizes the Authority,upon certain findings,establish and designate tax increment financing districts within the Project Area and to adopt and implement a tax increment financing plan to accomplish the Development Plan established for the Housing Project No. 1. Subsection 1-3. Statement of and Finding of Public Purpose The Authority has determined that there is a need for the Authority to take certain actions designed to encourage,ensure,and facilitate development and redevelopment by the private sector of underutilized and unused land located within the corporate limits of the City, in order to provide adequate and affordable housing for residents of the City and the surrounding area, to improve the tax base of the City,the County and the School District,to better utilize existing public facilities and provide needed public services,and to improve the general economy of the City, the County, and the State. Specifically, the Authority has • determined that the property within the Project Area is either underutilized or unused due to a variety of factors,which has resulted in a lack of private investment. The Authority further finds that the private sector has not provided the variety of housing opportunities necessary to meet the needs of the community. It is necessary for the Authority to exercise its authority under the HRA Act and the TIF Act to develop, implement and finance a program designed to encourage, ensure and facilitate the development of the property located in the Project Area, to further and accomplish the public purposes specified in this Development Plan. The development currently proposed in the Project Area consists of approximately 62 units of rental housing for senior citizens. The Authority finds that this development will alleviate a shortage of decent, safe and affordable housing for persons of low and moderate income. In adopting this Development Plan, the Authority also finds: 1. The development proposed for the Project Area would not occur solely through private investment in the foreseeable future. 2. The proposed development is consistent with the overall plans for the development of the City. 3. The proposed use of tax increment financing will afford maximum opportunity,consistent with the sound needs of the City as a whole,for the development or redevelopment of the property located in Housing Project No. 1 by private enterprise. 4. The welfare of the City, County, and the State of Minnesota requires active promotion, attraction, encouragement and development of a variety of housing opportunities. Subsection 1-4. Statement of Objectives The establishment of the Project Area in the City, pursuant to the HRA Act, is necessary and in the best interests of the City and its residents and is necessary to give the Authority the ability to meet certain public purpose objectives that would not be obtainable in the foreseeable future without intervention by the Authority in the normal development process. Orono HRA Development Plan for Housing Project No. I I-2