Agenda - Council Work Session - 10/26/2010

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City of Ramsey, Minnesota a. The City's estimate of the amount by which the market value of the site will increase without the use of tax increment financing is anywhere from $0 to some modest amount based on small scale development that could be possible without assistance; any estimated values would be too speculative to ascertain. b. If the proposed development to be assisted with tax increment occurs in the District, the total increase in market value would be approximately $591,723,309, including the value of the building (See Exhibit III). Prior to the inclusion of a 2% market value inflator starting in 2018. C. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $68,943,022 (See Exhibit VI) d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $522,780,287 (the amount in clause b less the amount in clause c) without tax increment assistance. (3) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for development of the Project Area by private enterprise. Factual basis: The anticipated development projected by the City may include the development of 69 acres for retail development, 10 acres for mixed -use development, 15 acres for commercial /business development, and 16 acres for housing development; in addition to the substantial private development which is projected to occur in the District. The mixed -use, transit - oriented development clearly meets the economic development goals of the City. (4) The TIF Plan conforms to general plans for development of the City as a whole. Factual basis: The City Planning Commission has determined that the development proposed in the TIF Plan conforms to the City comprehensive plan. (5) The City does not elect the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, Subdivision 3(b); therefore subdivision 3(a) shall apply which indicates the original net tax capacity and the current net tax capacity shall be determined before the application of the fiscal disparity provisions (see method (a) in Section P). Section K Estimated Public Costs The estimated public costs of the TIF District are listed below. Such costs are eligible for reimbursement from tax increments of the TIF District. Land /Building acquisition, Special Assessments, Public Utilities, Site Improvements /Preparation $61,825,343 Costs, Northstar Transit Station and related infrastructure, and other Eligible Improvements Bond /Note Interest Payments 105,312,690 Administrative expenses 18,570,896 Other Expenditures Capitalized Interest payments 0 Total $185,708,929 SPRINGSTED Page 4