Agenda - Council - 12/10/1996 - Laserfiche WebLink

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I I I I I I I I Q. Estimate of Project Costs. The City!currently plans to construct water and sewer lines, streets and storm sewers, site improvements, property acquisition and utility infrastructure improvements to service new industrial devel.O~ment within TIF District No. 7. The City also intends to acquire and clear a blighted industri~ area (or finance such acquisition and clearance by private parties) to permit new industrial development. The City also intends to assist industrial development through land acquisition and various site improvements. In lieu of directly acquiring property needed for redevelopment, and to avoid the potential liabirlity associated with such acquisition, the City may contribute to the cost of land acquisition by pr[,vate developers. Costs to be financed through tax increment are estimated as follows: Ufili~ Extensions and Street Construction Other ~Site Clean-up and preparation Costs Land ~quisition Utili~ Relocation Electric Utilities Administrative Costs $ 1,791,600 $ 1,200,000 $ 650,000 $ 200,000 $ 150,000 $ 399,160 Total: Costs $4,390,760 All of the above-identified costs constitute costs of correcting conditions that allowed designation of TIF District Nd. 7 as a redevelopment district. The costs ~Will be funded with tax increment from TIF District No. 7 on a pay-as-you-go basis. The City ieserves the right to adjust the mount of any of the items listed above or to incorporate additid~nal eligible items, so long as the total estimated public cost is not increased. The City intends to pay such costs initially and to be reimbursed from tax increments over time. R. Estimate of Bonded Indebtedness. The City ma~y issue bonds, pay-as-you-go notes or other obligations supported in part by tax increment from TIF District No. 7, in an amount not to exceed $4,390,760. The amount that may be issued in lSonds or notes includes ail of the costs associated with the issuance. The City may pay interest oO bonds or notes at a rote reasonably determined by the City. The term bonds or notes includes any 5nitial funding by the City to be repaid by tax increments. S. original Tax Capacity and Local Tax Rate Pursuant toi§469.177, Subd. 1 of the TIF Act, the original tax capacity of TIF District No. 7 is expected to be $ which is the valuation as of January 2, 1996. Each year, the County auditor will measure the increase or decrease in the tax capacity of the District. Any ~'ear in which the total tax capacity of the District exceeds the original tax capacity, as adjustefl, an increment will be payable to the City. Any year in which the tax capacity is below the origin.al tax capacity, as adjusted, no tax capacity will be captured and no increment will be payable to the City. 12