Agenda - Planning Commission - 09/05/1995

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E. Description of TIF District. A legal description of the properties within TIF District No. 6 is attached hereto as Exhibit B. map of approximate boundaries of TIF District No. 6 is attached hereto as Exhibit A. F. Development District Contracts. A Although no contracts have yet been executed for property within TI1a District No. 6, agreements regarding property within the Development District will be entered into in accordance Mth §469.176, Subd..5 of the TIF Act. No more than 10 percent, by acreage, of the land to be acquired within the Development District will be acquired by the City with bond proceeds without having concluded an agreement for development or redevelopment of the property. G. Classification of TIF District. In evaluating the characteristics of TIF District No. 6, in accordance with the TIF Act, the City has found that the district is an economic development district, pursuant to §469.174, Subd. 12(3). The anticipated industrial development will preserve and enhance the tax base of the State. H. Modification of TIF Pl~n. The Plan for TI2F District No. 6 may be modified by the City, provided that any reduction or enlargement of geographic area of the TIF District, increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on the debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized, increase in the portion of the captured assessed value to be retained by the City, increase in total estimated tax increment expenditures, or designation of adddfional property to be acquired by the City, shall be approved upon the notice and, after such discussion, public hearing and fundings as required for approval of the original plan. I. Use of Tax Increment. Pursuant to §469. I76, Subd. 4 of the TIF Act, all revenues derived from TIF District No. 6 shall be used in accordance with the Plan. The revenues shall be used to finance, or otherwise pay, the capital and administrative costs of development activities within the Development District as identified in the TIF Plan, subject to the limitations and conditions described in section K and L hereof. Further, each year the County Auditor will deduct. 1% of the tax increment collected from the TIF District for deposit in the state general fund, which amount is appropriated to the state auditor to pay the costs of monitoring and auditing of tax increment districts. 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. discharge the pledge of tax increment therefore; 3. pay amounts into an escrow account dedicated to the payment of bonds; or .5'8 Printed 8/11/95 Page 9 Draft