Agenda - Economic Development Authority - 09/03/2015

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Authorized uses: The TIF Plan contains a budget that authorizes the maximum amount that may be expended: Land/Building Acquisition $425,000 Site Improvements/Preparation $350,000 Public Utilities $100,000 Other Qualifying Improvements $55,528 Administrative Costs (up to 10%) $133.484 PROJECT COSTS TOTAL $1,064,012 Interest $404,308 PROJECT COSTS TOTAL S1,468,320 See Subsection 2-10, on page 2-5 of the TIF Plan for the full budget authorization. Form of financing: The project is proposed to be financed by a pay-as-you-go note and an interfund loan. Administrative fee: Up to 10% of annual increment, if costs are justified. Interfund Loan If the City wants to pay for administrative expenditures from a tax increment Requirement: fund, it is recommended that a resolution authorizing a loan from another fund be passed PRIOR to the issuance of the check. 4 Year Activity Rule (sC 469.176 Subd. 6) After four years from the date of certification of the District one of the following activities must have been commenced on each parcel in the District: • Demolition • Rehabilitation • Renovation • Other site preparation (not including utility services such as sewer and water) If the activity has not been started by approximately September 2015, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. 5 Year Rule Within 5 years of certification revenues derived from tax increments must be (sC 469.1763 Subd. 3) expended or obligated to be expended. Any obligations in the District made after approximately September 2015, will not be eligible for repayment from tax increments. The reasons and facts supporting the fmdings for the adoption of the TIF Plan for the District, as required pursuant to M.S., Section 469.175, Subd. 3, are included in Exhibit A of the City resolution. Page 2 1110 EHLERS LEADERS IN PUBLIC FINANCE