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Appendix C <br />Findings and But -For Analysis <br />The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for <br />Tax Increment Financing District No. 17: Delta ModTech as required pursuant to M.S., Section 469.175, <br />Subd. 3 are as follows: <br />1. Finding that the Tay Increment Financing District No. 17: Delta ModTech is an economic <br />development district as defined in M.S., Section 469.174, Subd. 12. <br />Tax Increment Financing District No. 17: Delta ModTech is a contiguous geographic area within the <br />Citv's Development District No. 1, delineated in the TIF Plan, for the purpose of financing economic <br />development in the City through the use of tax increment. The District is in the public interest <br />because it will facilitate development of a 185,000 square foot manufacturing facility for Delta <br />ModTech in the City which will discourage commerce, industry, or manufacturing from moving their <br />operations to another state or municipality; it will increase employment in the state, and preserve and <br />enhance the tax base of the state. <br />2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be <br />expected to occur solely through private investment within the reasonably foreseeable future and that <br />the increased market value of the site that could reasonably be expected to occur without the use of <br />tax increment financing would be less than the increase in the market value estimated to result from <br />the proposed development after subtracting the present value of the projected tax increments for the <br />maximum duration of Tax Increment Financing District No. 17: Delta ModTech permitted by the TIF <br />Plan. <br />The proposed development, in the opinion of the City, would not reasonably be expected to occur <br />solely through private investment within the reasonably foreseeable future: This finding is supported <br />by the fact that the development proposed in this plan is a manufacturing facility that meets the Citv's <br />objectives for economic development. The cost of land acquisition, site and public improvements and <br />utilities relative to the business investment alternatives in other areas makes development of the <br />facility infeasible without City assistance. <br />The increased market value of the site that could reasonably be expected to occur without the use of <br />tax increment financing would be less than the increase in market value estimated to result from the <br />proposed development after subtracting the present value of the projected tax increments for the <br />maximum duration of the TIF District permitted by the TIF Plan: The City supported this finding on <br />the grounds that the cost of The City supported this finding on the grounds that the cost of land <br />acquisition, site and public improvements and utilities add to the total development cost. In addition, <br />the City is competing for investment on this site with lower -cost options available to the business <br />elsewhere. The City reasonably determines that no other development of similar scope is anticipated <br />on this site without substantially similar assistance being provided to the development. <br />Therefore, the City concludes as follows: <br />a. The Citv's estimate of the amount by which the market value of the entire District will increase <br />without the use of tax increment financing is $0. <br />b. If the proposed development occurs, the total increase in market value will be $10,285,000. (see <br />Appendix B-2 <br />