Public Hearing RE Elements of Financial Package for rono Woods

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EXHIBIT A RESOLUTION# As required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, the reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 1-1, set forth below. Additional supporting information for each finding appears in the Plans and in the files of the City. 1. Finding that Tax Increment Financing District No. 1-1 is a housing district as defined in M.S., Section 469.174, Subd. 11. The District consists of one parcel. The proposed development will consist of approximately 62 units of rental housing for senior citizens. Twenty percent(20%) of the units will be occupied by persons with incomes less than 50%of the area median income. 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 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 theprojected tax increments for the maximum duration of Tax Increment Financing District No. 1-1 permitted by the Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future:This finding is supported by the fact that the development proposed in this plan is a housing that meets the City's objectives for development and redevelopment. The cost of land acquisition, site and public improvements and utilities makes this housing development infeasible without City assistance. Due to the high cost of building affordable new housing in the City and the cost of financing the proposed public improvements,this project is feasible only through assistance, in part, from tax increment financing. The developer has provided information demonstrating that the proposed development would not have gone forward without tax increment assistance. The increased market value of the site that could reasonable be expected to occur without the use of tax increment financingwould be less than the increase in 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 TIF District permitted by the Plan: The City supported this finding on the grounds that the cost of land acquisition,site and public improvements and utilities add to the total development cost. With the tax increment assistance the proposed housing development could not offer rents afford able to persons of low or moderate income. Therefore, land and site development costs in this area have made the proposed development infeasible without tax increment assistance. The City reasonably determines that no other development of similar scope is anticipated on this site without substantially similar assistance being provided to the development. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. If all development which is proposed to be assisted with tax increment were to occur in the District,the total increase in market value would be up to $5,766,000. The present value of tax increments from the District is estimated to be $848,000. It is the Council's finding that no development with a market value of greater than$4,918.000 would occur -4-