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i i Ii 1 City staff has determined that without tax increment assistance the parcel would be redeveloped with the foreseeable future, and therefore, there would be no eased market value. City staff has further determined that with tax increment assistance the evelopment activities described in Item 2 above could be achieved with an estimated rket value of approximately $600,000. After deducting the original market value of 5,000 from this estimated market value, City staff has further determined that the in eased market value that could reasonably be expected to occur from a project re eiving tax increment assistance would approximate $365,000. City staff has also determined that the total amount of tax increment generated the project using tax increment assistance over the 25 year term of the Proposed o trict approximates $460,693. Assuming the same 25 year term and a present value ra of 5.0%, the present value of $460,693 approximates $213,123, After deducting the p sent value of the tax increment ($213,123) from the increase in estimated market v I e occurring as a result of utilizing tax increment assistance ($365,000), the net in ease in estimated market values approximates $151,877. City staff has further determined that the increased market value of the site that Id reasonably be expected to occur without the use of tax increment financing ($0) is than the increase in the market value estimated to result from the proposed d elopment after subtracting the present value of the projected tax increments for the m ximum duration of the district permitted by the TIF Plan ($365,000 - $213,123 :;: $ 1,877). Further information supporting this Finding is attached as Exhibit C. Finding that the expenditure of tax increment serves a primarily public pose. The expenditure of tax increment is not intended as a private benefit, and any such efit is incidental. The principal intent for the tax increment expenditures includes the r oval of impediments to the development described in the Program and Proposed PI n. These activities include the (i) elimination of blight as described in Item 1 of this E ibit and further described in the City Report on file at City Hall; (ii) demolition and oval of existing structures; (Hi) removal of asbestos and other environmental ediation; and (v) replacement of substandard or insufficient infrastructure. Among the lic benefits are (i) the utilization of existing infrastructure including sanitary sewer, er, and roads; (ii) the remediation of contaminated properties; (vi) the elimination of ht; and (vii) the approximate 2.6 times increase in the Proposed District's tax base. 7 i !i i 1.1