Agenda - Planning Commission - 08/06/1996

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o Pursuant to §469.176, subd. 4c of the TIF Act, revenue der/ved from tax increments from T1F District No. 6 will not be used to provide assistance in any form to developments consisting of buildings and ancillary facilities, ff mom than 14 percent of the buildings and facilities (determined on the basis of square footage) are used for a purpose other than: the manufacturing or production of tangible personal property, including processing resulting the change in condition of the property; (2) warehousing, storage, and distribution of tangible personal property, excluding retail sales; (3) research and development related to the activities listed in clause (1) or (2); (4) telemarketing ff that activity is the exclusive use of the properly; (5) tourism facilities; or (6) space necessary for and related to the activities listed in clauses (1) to (5). The TIF District consists of an industrial park to be developed by various manufacturing and warehouse concerns. The City anticipates that the Anoka Electric Cooperative facility will be the initial development in the TEF District. That facility consists primarily of warehousing, and storage of equipment and vehicles, distribution of electric power, research and development relating to the generation of electric power, and office space necessary for and related to the above activities. Pursuant to §469.I763, subd. 2 of the TI2F Act, at least 80 percent of the revenue derived from tax increments paid by properties in TIF District No. 6 will be expended on activities ("Activities") in the T137 District or to pay bonds, to the extent that the proceeds of the bonds were used to finance Activities in the T~ District or to pay, or secure payment of, debt service on credit enhanced bonds (as defined in the TIF Act). No more than 20 percent of the revenue derived from tax increments paid by properties in TIF District No. 6 will be expended, through a development fund or otherwise, on Activities outside of the T/F District but within Development District No. 1 except to pay, or secure payment of, debt service on credit enhanced bonds. Adminisn'ative expenditures will be considered Activities outside the TIF DistrSct. The City will comply with the 5-year rule set forth in §469. i763, subd. 3 of the T/F Act. L. Limitation on Administrative Expenses. Pursuant to §469.176, Subd. 3 of the TEF Act, administrative expenses are limited to 10 percent of the total tax increment expenditures. Each time the City increases the budget of TlY District No. 6, the amount of tax increment money allocated to administrative costs may be increased as long as the total of administrative expenditures does not exceed 10 percent of the total budget of the TIF District* 11