Agenda - Council Work Session - 10/26/2010

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City of Ramsey, Minnesota cost of acquisition or fair market value, grants, ground or other leases at less then fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary. Section R Excess Tax Increment In any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan, the City shall use the excess tax increments to: (1) prepay any outstanding tax increment bonds; (2) discharge the pledge of tax increments thereof; (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds; or (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District. The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution. Section S Tax Increment Pooling and the Five Year Rule Under Chapter 389 — H.F.No. 3729, Article 7 "Public Finance ", Section 22 City of Ramsey; Tax Increment Financing District; Special Rules Subdivision (e) at least 100% of the tax increments from the TIF District, except for administrative expenses, must be expended on activities within the district or to pay for bonds used to finance the estimated public costs of the TIF District (see Section E for additional restrictions). All administrative expenses are considered to have been spent outside of the TIF District. Tax increments are considered to have been spent within the TIF District if such amounts are: (1) actually paid to a third party for activities performed within the TIF District within five years after certification of the district; (2) used to pay bonds that were issued and sold to a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the five -year period or a reasonable temporary period or are deposited in a reasonably required reserve or replacement fund. (3) used to make payments or reimbursements to a third party under binding contracts for activities performed within the TIF District, which were entered into within five years after certification of the district; or (4) used to reimburse a party for payment of eligible costs (including interest) incurred within five years from certification of the district. Under Chapter 389 — H.F.No. 3729, Article 7 "Public Finance ", Section 22 City of Ramsey; Tax Increment Financing District; Special Rules Subdivision (d) beginning with the 11th year following certification of the TIF District, at least 100% of the tax increments must be used to pay outstanding bonds or make contractual payments obligated within the first ten years. When outstanding bonds have been defeased and sufficient money has been set aside to pay for such contractual obligations, the TIF District must be decertified. The Authority does not anticipate that tax increments will be spent outside of the TIF District, except for allowable administrative expenses, in accordance with subdivision (e). Section T Limitation on Administrative Expenses SPRINGSTED Page 8