Agenda - Economic Development Authority - 06/13/2019

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Subsection 2-5. Description of Property in the District and Property To Be Acquired The District encompasses a portion of the property and adjacent rights -of -way and abutting roadways identified by the parcel listed below: 20-32-25-34-0004 This parcel will be subdivided prior to certification fo the district. The district will include approximately 16 acres of the larger existing parcel. Please also see the map in Appendix A for further information on the location of the District. Subsection 2-6. Classification of the District The City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1794, as amended, inclusive, finds that the District, to be established, is an economic development district pursuant to M.S., Section 469.174, Subd. 12. The District is in the public interest because it will meet the following statutory requirements: It will result in increased employment in the state, and it will result in preservation and enhancement of the tax base of the state. Pursuant to M.S., Section 469.176, Subd. 4c, revenue derived from tax increment from an economic development district may not be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and facilities (determined on the basis of square footage) are used for a purpose other than: (1) The manufacturing or production of tangible personal property, including processing resulting in the change in condition of the property; (2) Warehousing, storage, and distribution of tangible personal property, excluding retail sales; (3) Research and development related to the activities listed in items (1) or (2); (4) Telemarketing if that activity is the exclusive use of the property; or (5) Tourism facilities; (6) Space necessary for and related to the activities listed in items (1) to (5); or (7) A workforce housing project that satisfies the requirements of paragraph (d). In meeting the statutory criteria the City relies on the following facts and findings: The facilities in the District meet the conditions of Purposes 1, 2, and 6. The District is being created to assist in the construction of a manufacturing facility for Delta ModTech. The proposed facility will be used for manufacturing, warehousing and related activities. Subsection 2-7. Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and M. S., Section 469.176, Subd. 1, the duration of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. lb., the duration of the District will be 8 years after receipt of the first increment by the City. The date of receipt by the City of the first tax increment is expected to be 2021. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2029, or when the TIF Plan City of Ramsey Tax Increment Financing Plan for Tax Increment Financing District No. 17: Delta Modtech 2-2