Agenda - Planning Commission - 12/02/2010

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City of Ramsey, Minnesota Administrative expenses are defined as all costs of the Authority other than: (1) amounts paid for the purchase of land; (2) amounts paid for materials and services, including architectural and engineering services directly connected with the physical development of the real property in the project; (3) . relocation benefits paid to, or services provided for, persons residing or businesses. located in the project; (4) amounts used to pay principal or interest on, fund a reserve.for6i''sell at a discount bonds issued pursuant to section 469.178; or m(rh''Wh ,pi' (5) amounts used to pay other financial obligations to the extent those'011gations were used to finance costs described in clause (1) to (3). "'j')' ''ry"t Administrative expenses include amounts paid for services provtded by bond counsel, fiscaf consultants, planning or economic development consultants, and actual costs incur"ted. by the County,., in administeringtih;P. TIF District. Tax increments may be used to pay administrative expenses bf, the,TIF Districtfupt.to the lesser of (a)'{ 10% of the total estimated tax increment expenditures authorized by the TIF Planjek(b)10 46f the total tax increment for the project. G,jly n j$ Section U Limitation on Property Nof-Subjgct to, Improvemehta4. F, our Year Rule g.taailii �0 ',Mlf"T. r'ii'tn. If after four years from certification of the TIF;ikDistrict'nd' 'emolition, rehiebiiitation, renovation, or qualified improvement of an adjacent streetlhaskoommenced,on,a parc1et Iodated+within the TIF District, then that parcel shall be excluded from the TIF Distict'.and the ongmalj;netl,tax"capaciity'<shall' be adjusted accordingly. Qualified improvements of a street are; limited to coristruction or"opernng of a new street, relocation of a street, or substantial reconstruction or rebuild'jg o#lan existing street. The Cik1rnust submit to the County Auditor, by February 1 of the fifth year, evidence thafthe required activit iI $s taken plaoefor each parcel in the TIF District. If a parcel is excluded from th'e.,TIIF Distnctt'and^the Authorityvor;,owner of the parcel subsequently commences any of [r : the above activ tieslthe City shallicertify io the Counfy'AUditor that such activity has commenced and the parcel shall once agatrtjtiej included u the TIF District The County Auditor shall certify the net tax capacity of the parcel, as most recentlaerhfed by the Commissioner o Revenue, and add such amount to the original net tax capacity of the TIF Distriett' J l'1.01 ., .ksT. The City'SI iii'ttie process of seekingspeciai legislation to seek exemption from or redefinition of the requirements of Minnesota Statutes, Chapter 469.176:Subdivision 6. tir et y Section V Estimated I,m�pact on Other Taxing Jurisdictions Exhibit V shows the estinatedkinipact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The City believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occurwhen the TIF District is decertified and the development therein becomes part of the general tax base. The fiscal and economic implications of the proposed tax increment financing -district, as pursuant to Minnesota Statutes, Section 469.175, Subdivision 2, are listed below. 1. The total amount of tax increment that will be generated over the life of the district is estimated to be $185,708,929. SPRINGSTED Page 9 29