06-13-2002 Planning Comm. Agenda

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Subsection 3-25. Administration of the District Administration of the llistrict will be handled by the City Administrator. Subsection 3-26.Annual Disclosure Requirements Pursuant to MS., Section 469.175, Subd. S, 6 and 6a the EDA or City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board, County Auditor and School Board on or before August 1 of each year. MS'., Section 469.175, Szrbd 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by MS Section 469.175 Subd. 5 arzd Subd. 6, the OSA will direct the County Auditor to withhold the distribution of tax increment from the District. Subsection 3-27. Reasonable Expectations As required by the TIF Act, in establishing the District, 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 vahte 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 presentvahie ofthe projected tax increments for the maximum duration of the District perm fitted by the Plan. In making said determination, reliance has been placed upon written representation made by the developer to Bach effects and upon EDA and Citystaffawarenessoftliefeasibilityofdevelopingtheprojectsite. Acomparativeanalysisofestimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D, 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 establislnnent of the District and the use of tax increments. Subsection 3-28.Other Limitations on the Use of Tax Increment General Limitations. All revenue derived from tax increment shall be used in accordance with the Plan. The revenues shall be used to finance, or otherwise pay the cost of redevelopment of Redevelopment Project Area No. 1 pursuant to the MS, Sections 469.090 to 469.1082. Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, 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. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure. 2. Restriction on Pooline: Five Year Limit. Pursuant to MS, Section 469.1763, (1) At ]east 80% of the tax increment derived from the District must be expended on Public Costs incurred within said district, and up to 20% of said tax increments may be spent on Public Costs incurred outside of the District but within Redevelopment Project Area No. 1; provided that in the case of a housing district, a housing project, as defined in MS, Section 469.174, Subd. Il is deemed to be an activity in the District, and (2) public costs within the District shall be ]invited to reimbursement of public costs paid before or within five years after certification of said district bythe County Auditor and interest on all such unreimbursed Economic DevelopmcN Amhority oflhe City of Lillle Canada Tax lncmmem Financing Plan for'IDx Increment Financing District No.3-3 3-~7