Agenda - Economic Development Authority - 06/08/2017

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Authorized uses: The TIF Plan contains a budget that authorizes the maximum amount that may be expended: Form of financing: Administrative fee: Interfund Loan Requirement: 4 Year Activity Rule 0 469.176 Subd. 6) 5 Year Rule 0 469.1763 Subd. 3) Land/Building Acquisition $200,000 Site Improvements/Preparation $75,000 Public Utilities $53,153 Administrative Costs (up to 10%) $40,076 PROJECT COSTS TOTAL $368,229 Interest $72.603 PROJECT COSTS TOTAL S440.832 See Subsection 2-10, on page 2-5 of the TIF Plan for the full budget authorization. The project is proposed to be financed by a pay-as-you-go note and/or interfund loan. Up to 10% of annual increment, if costs are justified. If the City wants to pay for administrative expenditures from a tax increment fund, it is recommended that a resolution authorizing a loan from another fund be passed PRIOR to the issuance of the check. 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 June 2021, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. Within 5 years of certification revenues derived from tax increments must be expended or obligated to be expended. Any obligations in the District made after approximately June 2022, will not be eligible for repayment from tax increments. The reasons and facts supporting the findings 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 0 EHLERS LEADERS IN PUBLIC FINANCE