Agenda - Council Work Session - 05/13/2014

Home

Section J Findings and Need for Tax Increment Financing In establishing the TIF District, the City makes the following findings: (1) The TIF District qualifies as a redevelopment district; See Section E of this document for the reasons and facts supporting this finding. (2) 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, and the increased market value of the site that could reasonably be expected to occur without the use of tax increment would 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 TIF Plan; Factual Basis: Proposed development not expected to occur: The proposed development in the District will include the construction of substantial transit and road improvements. A key component to the successful development of the project and the surrounding area is the construction of the Ramsey Station on the Northstar Commuter Rail. The application of tax increment financing will allow for construction of this key transit and related transportation infrastructure that will support the development of the proposed mixed -use, transit oriented development. The City has determined that but -for this investment in infrastructure to support the quality and type of development desired by the City and its regional partners, this project will not realize its full potential and maximize its location on a key transit and transportation corridor. In addition to the transit oriented benefits of this TIF Plan, the related transportation improvements of the Armstrong Boulevard interchange and pedestrian overpass will increase motor vehicle and pedestrian safety in the corridor. Additionally, this interchange improvement will increase the likelihood of development surrounding the interchange, that would not likely occur but -for the interchange improvement. The City believes the investment in this key infrastructure would not occur but for the use of tax increment financing, and the special uses provided by the special legislation granted under Chapter 389 - H.F.No. 3729, Article 7 "Public Finance ", Section 22 City of Ramsey; Tax Increment Financing District; Special Rules Subdivisions (a -e). The City anticipates analyzing future developer's proformas in detail to determine the minimal amount of assistance needed to compensate developers for extraordinary development costs. No higher market value expected: This fmding is based on the fact that no other development of comparable scope to the proposed development is practical without the same type of assistance described in this plan, or the proposed transit and roadway improvements. The City of Ramsey believes the investment in this key infrastructure will provide for economic growth and development to the fullest potential, which would not be realized but for the use of tax increment financing. To summarize the basis for the City's findings regarding alternative market value, in accordance with Minnesota Statutes, Section 469.175, Subd. 3(d), the City makes the following determinations: a. The City's estimate of the amount by which the market value of the site will increase City of Ramsey Modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 14 4