Agenda - Council - 01/23/2007 - Laserfiche WebLink

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Section 3.10 Estimated Recent Net Tax Capacity. The estimated net tax capacity of all taxable property in Tax Increment Financing District No. 11 as most recently certified by the Commissioner of Revenue of the State of Minnesota, being the certification made in 2006 with respect to the net tax capacity of such property as of January 2, 2006, for taxes payable in 2007 is estimated to be $4,125. Section 3.11 Estimated Captured Net Tax Capacity and Computation of Tax Increment. Each year the County Auditor will measure the amount of increase or decrease in the total net tax capacity value of Tax Increment Financing District No. 11 to calculate the Tax Increments payable to the City. In any year in which there is an increase in total net tax capacity in Tax Increment Financing District No. 11 above the original net tax capacity, Tax Increments will be payable to the City. In any year in which the total net tax capacity in Tax Increment Financing District No. 11 declines below the net tax capacity, no net tax capacity will be captured and no tax increment will be payable. The County Auditor shall certify in each year after the date the original net tax capacity was certified, the amount the net tax capacity has increased or decreased as a result of: (1) change in tax exempt status of property; (2) reduction or enlargement of the geographic boundaries of the district; (3) change due to stipulations, adjustments, negotiated or court-ordered abatements; (4) change in the use of the property and classification; (5) change in state law governing class rates; and (6) change in connection with previously issued building permits. Upon completion of the development expected to occur in Tax Increment Financing District No. 11 the City estimates the net tax capacity of taxable property in Tax Increment Financing District No. 11 will be approximately $253,750. The average captured net tax capacity upon completion of development is expected to be approximately $249,625. The Tax Increments will be captured for up to 25 years from receipt of the first Tax Increments or until the Public Costs described in the Tax Increment Financing Plan have been paid. The City determines that 100% of the available increase in net tax capacity from Tax Increment Financing District No. 11 shall be used for the repayment of the Tax Increment Bond, and payment of Public Costs of the Development District in accordance with the Development Program and Tax Increment Financing Plan. Section 3.12 Type of Tax Increment Financing District. Pursuant to Section 469.174, Subdivision 11 of the Act, the City has determined that Tax Increment Financing District No. 11 qualifies as a "housing district". 1954494v3 6 -167-