Agenda - Council Work Session - 06/25/2019

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Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and determined no building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. Subsection 2-9. Sources of Revenue/Bonds to be Issued The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District will be financed by a pay-as-yo -go note and interfund loan. Any refunding amounts will be deemed a budgeted cost without a formal TI Modification. This provision does not obligate the City to incur debt. The City will issue bonds o� r other debt only upon the determination that such action is in the best interest of the City. . C< The total estimated tax increment revenues for the District are shown Skile,table below: (5 SOURCES OF FUNDS Tax Increment Interest TOTAL 0 (<•+ TOTAL $1,197,486 $119,749 $1,317,235 The City may issue bonds (as defined in,TIF Act) secured in whole or in part with tax increments from the District in a maximum principal an t of $1,103,976. Such bonds may be in the form of pay-as-you-go notes, revenue bonds or notes, ge 1 obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative st er t of authority under this TIF Plan as of the date of approval. Subsection 2-10. Use f Funds Currently under conriQion for the District is a proposal to facilitate the development of a 185,000 square foot manufacturing lity. The City has determined that it will be necessary to provide assistance to the project for certain District costs, as described. The City has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. City of Ramsey Tax Increment Financing Plan for Tax Increment Financing District No. 17: Delta Modtech 2-4