2010-04 APPROVING THE TAX INCREMENT PINES SHOPPING CENTER REDEVELOPMENT PLAN

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J� u blighted and a conservation area. One Hundred(100%)percent of the buildings are 35 years of cn eG age or older. Only three blighting factors are required to exist in the Area in order to meet CL statutory requirements as a conservation area. Six(6) blighting factors were found to exist in --+ the improved portion of the Area with all of them being present to a meaningful extent and reasonably distributed throughout the Area. These are Obsolescence, Deterioration, Below Code, Excessive Vacancies, Lack of Planning and Lagging EAV. Moreover, all of these a� factors are reasonably distributed throughout the area to a meaningful extent. Those qualifying factors that were determined to exist in the Area are summarized in Exhibit B, entitled pBlighting/Conservation Factors—Improved Lots. SECTION VI THE "BUT FOR" TEST "The TIF Act's purpose is to eradicate blighted conditions and prevent new ones from occurring. The intent of the Act is to redevelop blighted areas so as to prevent the further deterioration of the tax bases of these areas and to remove the threat to the health, safety, morals and welfare of the public which blighted conditions present." Canton v. Crouch, 79 Ill 2d at 360. Pursuant to Section 3 of the Act, this Redevelopment Plan can not be adopted pursuant to the Act unless it is found that the Area has not been subject to growth and development by private enterprise and would not reasonably be anticipated to be developed without the adoption of this Redevelopment Plan. In addition, this Plan must include evidence indicating that the Area, on the whole, has not been subject to growth and development by private enterprise. In reviewing the facts and circumstances involving the Area, it was determined that the Area meets the statutory requirements of the "But For" test based on the following discussion of the relevant blighting factors as well as other information provided by the City and knowledgeable individuals who are familiar with the Area and its lack of development opportunities. In addition, the lack of substantial renovation or updating by the current owner of the Area have contributed to the lack of development opportunities in the Area. Finally, the proposed purchaser of the real estate within the Area has indicated that the implementation of Tax Increment Financing and other inducements is an essential component of its plan to purchase real estate without which the purchase and redevelopment will not proceed. The presence of the blighting factors, the lack of investments by current ownership and the unwillingness of a proposed owner to proceed all demonstrate the need for Tax Increment Financing. A. The Decline in Equalized Assessed Value The Area over the last five years has reflected a significant decline in equalized assessed value of 22.51% compared to a growth in the rest of the City of 12.99%. This indicates a lack of reinvestment in the Area which is evidenced by the conditions of the buildings there. 20