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EXHIBIT A TO RESOLUTION NO. 97-057 The reasons and facts supporting the findings for the Tax Increment Financing Plan (the "TIF Plan") for proposed Tax Increment Financing District No. 26 (the "TIF District") pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, are as follows: 1. Finding that the proposed TIF District is a "redevelopment district" as defined in Minnesota Statutes. The proposed TIF District consists of 16 parcels of land. Parcels consisting of 70% of the area of the TIF District are occupied by improvements and more than 50% of the buildings not including outbuildings are structurally substandard to a degree requiring substantial renovation or clearance. These characteristics of the proposed TIF District qualify it as a redevelopment district under Minnesota Statutes. 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 redevelopment costs including acquisition, demolition! the enormous costs of pollution abatement! excavation, site preparation and the installation of utilities and roads, and the available methods of financing this project, and has determined that without TIF assistance, the redevelopment would not be economically feasible to construct and finance, and therefore would not proceed. A more detailed analysis that the redevelopment would not occur "But For" the City's intervention and assistance is attached as Schedule 1. City staff has determined that the increased market value realized from a project receiving no TIF Assistance would be considerably less than the increased market value (less the present value of tax increment receipts) from a project utilizing TIF Assistance. (see attached Schedule 2) . 3. Finding that the TIF plan conforms to the general plan for the development or redevelopment of the municipality as a whole. The City Council has reviewed the Development Program and has determined that it conforms to the comprehensive plan of the City. 4. Finding that the TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole for the development or redevelopment of Development District No. 1 by private enterprise.