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

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capacity to be retained by the City, increase in total estimated Public Costs or designation of additional property to be acquired by the City shall be approved upon the notice and after the discussion, public hearing and fmdings required for approval of the Tax Increment Financing Plan. The geographic area of a Tax Increment Financing District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcels from the project or district and (2)(A) the current tax capacity of the parcels eliminated from the district equals or exceeds the tax capacity of those parcels in the district's original tax capacity or (B) the authority agrees that, notwithstanding Section 469.177, subdivision 1, the original tax capacity will be reduced by no more than the current tax capacity of the parcels eliminated from the district. The authority must notify the county auditor of any modification that reduces or enlarges the geographic area of a district or a project area. Section 3.19 Limitation on Administrative Expenses. In accordance with Minnesota Statutes, Section 469.174, Subdivision 14 and Minnesota Statutes, Section 469.176, Subdivision 3, administrative expenses means all expenditures of an authority other than (1) amounts paid for the purchase of land; (2) amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the project; (3) relocation benefits paid to or services provided for persons residing or businesses located in the project; (4) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to Section 469.178; or (5) amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3). For districts for which the requests for certifications were made before August 1, 1979, or after June 30, 1982, administrative expenses includes amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. No Tax Increments shall be used to pay any administrative expenses for a project which exceed ten percent of the total expenditures authorized by the Tax Increment Financing Plan or tlle total Project Costs, whichever is less. Section 3.20 Limitation on ~ualification of Property in Tax Increment Financing Districts Not Subject to Improvement. Pursuant to Minnesota Statutes, Section 469.176, Subdivision 6, "if, after four years from the date of certification of the original net tax capacity of the tax increment financing district..., no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment fmancing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment fmancing plan, the authority shall certify to the county auditor that the activity has commenced, and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment fmancing district." The City must submit to the county auditor evidence that the required activity has taken place for each parcel in the tax increment financing district. The 1954494v3 -170- 9