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EXHIBIT A TO RESOLUTION NO. The reasons and facts supporting the findings for the Tax Increment Financing Plan (the "TIF Plan") for proposed Tax Increment Financing District No. 24 (the tlTIF 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 seven parcels of land, 70% of which is considered improved. In addition, six of the parcels contain a total of seven structures, 50% of which are considered substandard structures. 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. In addition to the several buildings which are outdated, dilapidated, or have deteriorated to a degree requiring demolition, there are ingress/egress problems and the site of the proposed TIF District itself requires substantial public and site improvements, including the installation of streets, sewers and a water system. Finally, the site has substantial differences in grade and excessive top soil, all of which requires extensive site grading and soil correction and preparation. Due to these significant costs, the redevelopment project would not be financially feasible without City assistance. Because of the ingress/egress problems with the site, the back portion of three parcels are not developable and a fourth parcel is completely landlocked. One of the parcels is developable, in terms of ingress/ egress but would require considerable site improvements, and would accommodate an approximate 42,500 square foot building. Additionally, the City has projected that the increase in market value (less the present value of the tax increment generated) resulting from the proposed development with tax increment assistance would be greater than the increase in market value resulting from development without tax increment assistance (see attached Schedule) . 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. 5