Agenda - Council Work Session - 10/26/2010

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City of Ramsey, Minnesota The City reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost is not increased. Section L Estimated Sources of Revenue Tax Increment revenue $185,708,929 Interest on invested funds 0 Bond proceeds 0 Loan proceeds 0 Grants 0 Other 0 Total $185,708,929 The City anticipates using future tax increments for reimbursement of public costs incurred from Section K. As increments are collected from the TIF District in future years, a portion of these taxes will be reserved by the City as reimbursement for public costs incurred (primarily land acquisition), either through internal funding or general obligation or revenue debt. The City also anticipates providing financial assistance to the proposed developments through the use of a pay -as- you -go technique. As tax increments are collected from the TIF District in future years, a portion of these taxes will be distributed to the developer /owner as reimbursement for public costs incurred that relate to redevelopment of the project site. The City reserves the right to finance any or all public costs of the TIF District using pay -as- you -go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The City also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. Section M Estimated Amount of Bonded Indebtedness The Authority does not anticipate issuing tax increment bonds to finance the estimated public costs of the TIF District, but reserves the right to issue such bonds in an amount not to exceed $80,372,946 ($61,825,343 + 30% contingency). Section N Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive, this value is based on the current assessment year. The Estimated Market Value of all property within the TIF District as of January 2, 2010, for taxes payable in 2011, is $68,067,900. Upon establishment of the TIF District, and subsequent reclassification of property, it is estimated that the original net tax capacity of the TIF District will be approximately $1,128,643. At the time this document was created a significant portion of the land within the TIF District was owned by the City and tax - exempt and is not included in the amounts above. Pursuant to Minnesota Statutes, Section 469.177, Subdivision 1(c) if improvements are made to tax exempt property after certification of the District and before the parcel becomes taxable, the assessor shall, at the request of the City, separately assess the estimated market value of the improvements. If the property becomes taxable, the County Auditor shall add to original net tax capacity, the net tax capacity of the parcel, excluding the separately assessed improvements. The City intends to request the assessor separately assess the market value of any improvements to the currently tax - exempt property. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: SPRINGSTED Page 5