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

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SHALL NOTIFY THE COUNTY AUDITOR TO HOLD THE DISTRIBUTION OF TAX INCREMENT FROM TAX INCREMENT FINANCING DISTRICT NO. 13. Section 3.24 Reasonable Expectations. As required by the Tax Increment Financing Act, in establishing Tax Increment Financing District No. 13, 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. 13 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. 13 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. 13 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 financing plan. The revenues shall be used to finance 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. At least 75 percent of tax increments from the Tax Increment Financing District No. 13 must be expended on activities in Tax Increment District. Financing No. 13 or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 25 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of Tax Increment Financing District No. 13 except to pay, or secure payment of, debt service on credit enhanced bonds. For purpose of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of Tax Increment Financing District No. 13. (3) Renewal and Renovation District. At least 90 percent of the revenues deprived from tax increment from a renewal and renovation district must be used to finance the cost of correcting conditions that allow designation of redevelopment and renewal and renovation 1971165v3 14 -235-