Agenda - Planning Commission - 08/06/1996

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J. Excess Tax Increment. Pursuant to §469.176, Subd. 2 of the TIF Act, in any year in which the increment exceeds the amount necessary to pay the costs authorized by the TIF Plan, the City shall use the excess amount to do any of the following, in the order determined by the City: 1. prepay any outstanding bonds; 2. pay the cost of additional site improvements to the properties developed within the district: 3. discharge the pledge of tax increment therefore; 4. pay amounts into an escrow account dedicated to the payment of bonds; or 5. return the excess amount to the Anoka County Auditor who shall distribute the ~xcess amount to the City, the County and Anoka-Hennepin Independent School District No. 11 in direct proportion to their respective tax capacity rates. In addition, the City may choose to modify the TIF Plan again in order to provide for other public improvements within the Development District. K. Limitation of Increment. No increment shall be paid to the City from 2'IF District No. 6 after three years from the date of certification of the original tax capacity of the taxable real property in the District by the county auditor, unless within the three year period (a) bonds have been issued pursuant to §469.178 of the TIF Act or any other law, except revenue bonds issued pursuant to M.S. §469.152 to §469.165, or (b) the City has acquired property within TIF District No. 6, or (c) the City has constructed, or caused to be constructed, public improvements within TIF Diswict No. 6. If, after four years from the date of certification of the original tax capacity of TIF District No. 6, no demolition, rehabilitation, or renovation of property, or other site preparation, including qualified improvement of a street or fight-of-way adjacent to a parcel but not installation of underground utility service, including sewer or water systems, have been commenced on a parcel located within TIF District No. 6 by the City, or by the owner of the parcel in accordance with the TIF Plan, no additional increment may be taken from that parcel, and the original tax capacity of that parcel shall be excluded from the original tax capacity of the TIF District. If these activities subsequently commence, the City shall so certify to the county auditor, the tax capacity of the property as most recently certified by the commissioner of revenue may be added to the TIF District's original tax capacity. No tax increment shall in any event be pa.id to the City from TIF District No. 6 after nine years from the date of receipt, by the City, of the first increment, or after eleven years from the approval of the TLF Plan, whichever is less. 10