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, ,'I :; :i ! I I 2. Finding that the proposed development, in the opinion of the Council, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary. City staff has reviewed the estimated redevelopment costs which include acquisition, demolition, relocation, infrastructure improvements, site preparation and environmental remediation and the available methods of financing. The estimated redevelopment costs are approximately $14.0 million, however, the value of the land for the proposed project is approximately $5.5 million. It has been determined that this difference of approximately $8.5 million requires tax increment assistance to make the redevelopment project economically feasible and to allow it to proceed. Additional background and analysis supporting this Finding is included in Exhibit XXXII-D of the Proposed Plan. 3. Finding 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 the district permitted by the TIF Plan. The original market value of the 11 parcels within the Proposed District is $6,967,000. City staff has determined that without tax increment assistance it is possible to construct a three story, 60,000 square foot office building which would fully utilize the southern 4 parcels (previously known as the "bowling alley" and "Keys"). The estimated market value of the redeveloped parcels is approximately $5,100,000 (60,000 square feet times $85.00 per square foot) and the remaining 7 parcels, which can not be redeveloped under this scenario, have a current combined market value of $5,703,300, resulting in a total estimated market value of $10,803,300. After deducting the original market value of $6,967,000 from the estimated market value of $10,803,300, City staff has further determined that the increased market value that could reasonably be expected to occur from a project receiving no tax increment assistance would be the difference of $10,803,300 less $6,967,000, or approximately $3,841,300. City staff has further determined that with tax increment assistance it is possible to construct 132 condominiums with an average market value of $180,000, 168 loft units with an average market value of $185,000, and 80 senior rental units with an average market value of $90,000 on the entire 11 parcel site. The estimated market value of this redevelopment is 6