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

Home

SHALL NOTIFY THE COUNTY AUDITOR TO HOLD THE DISTRIBUTION OF TAX INCREMENT FROM TAX INCREMENT FINANCING DISTRICT NO. 11. Section 3.24 Reasonable Expectations. As required by the Tax Increment Financing Act, in establishing Tax Increment Financing District No. 11, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected Tax Increments for the maximum duration of Tax Increment Financing District No. 11 permitted by the Tax Increment Financing Plan. In making said determination, reliance has been placed upon written representations made by the developer to such effects and upon City staff awareness of the feasibility of developing the project site. A comparative analysis of estimated market values both with and without establishment of Tax Increment Financing District No. 11 and the use of Tax Increments has been performed as described above. Such analysis is on file with the City, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of Tax Increment Financing District No. 11 and the use of Tax Increments. Section 3.25 Other Limitations on the Use of Tax Increment. (1) General Limitations. All revenue derived from tax increment shall be used in accordance with the tax increment fmancing plan. The revenues shall be used to fmance or otherwise pay public capital and administration costs pursuant to Minnesota Statutes, Section 469.124 through 469.134. These revenues shall not be used to circumvent existing levy limit law. No revenues derived from tax increment shall be used for the construction, renovation, operation or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government or for a commons area used as a public park, or a facility used for social, recreational, or conference purposes; this provision shall not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure or of a privately owned facility for conference purposes. (2) Restriction on Pooling. Pursuant to Minnesota Statutes, Section 469.1763, the tax increment derived from Housing District No. 11 must be expended on public costs of the housing project as defmed in Minnesota Statutes, Section 469.174, subd. 11 and subj ect to the requirements set forth in Minnesota Statutes, Section 469.1761. Section 3.26 Economic Development or Job Growth: Business Subsidies: Reporting. To the extent applicable, the City agrees to comply with Minnesota Statutes, Sections 116J.993 to 116J.995, which states that a local unit of government granting financial assistance to a business for economic development or job growth purposes, including tax increment fmancing, must establish business subsidy criteria and approve a business subsidy agreement with the business receiving tax assistance. Minnesota Statutes, Section 1161.993 requires a city providing 1954494v3 14 -175-