Resolution - #07-01-038 - 01/23/2007

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3. Tax Increment Financing Plan. The Tax Increment Financing Plan is adopted as the tax increment financing plan for Tax Increment Financing District No. 12, and the City Council makes the following findings: (a) Tax Increment Financing District No. 12 is a Tax Increment Financing District as defined in Minnesota Statutes, Section 469.174, Subd. 11, the specific basis for such determination being that the 20 unit multifamily rental housing facility project will provide safe, decent, affordable, sanitary housing for residents of the city and it will result in the preservation and enhancement of the tax base of the State. . (b) The proposed redevelopment in the opinion of the City Council, would not 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 the projected tax increments for the maximum duration of Tax Increment Financing District No. 12 permitted by the Tax Increment Financing Plan. The reasons supporting this finding are that: (i) Private investment will not finance these development activities because of prohibitive costs. It is necessary to finance these development activities through the use of tax increment financing so that other development by private enterprise will occur within Development District No.1. (ii) A comparative analysis of estimated market values both with and without establishment of Tax Increment Financing District No. 12 and the use of tax increments has been performed as described above. Such analysis is found in Exhibit E of the Tax Increment Financing Plan, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of Tax Increment Financing District No. 12 and the use of tax increments. (c) The Tax Increment Financing Plan for Tax Increment Financing District No. 12 conforms to the general plan for development or redevelopment of the City of Ramsey as a whole. The reasons for supporting this finding are that: (i) Tax Increment Financing District No. 12 is properly zoned; and (ii) The Tax Increment Financing Plan will generally complement and serve to implement policies adopted by the City. (d) The Tax Increment Financing Plan will afford maximum opportunity, consistent with the sound needs of the City of Ramsey as a whole, for the development or redevelopment of Development District No.1 by private enterprise. Resolution #07-01-038 Page 2 of 4