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Page 2 <br /> <br />Authorized uses: <br /> <br /> <br /> <br /> <br /> <br /> <br />The TIF Plan contains a budget that authorizes the maximum amount that <br />may be expended: <br /> <br />Land/Building Acquisition .................................................. $2,500,000 <br />Site Improvements/Preparation .............................................. $500,000 <br />Utilities ................................................................................... $500,000 <br />Other Qualifying Improvements ............................................ $535,270 <br />Administrative Costs (up to 10%) .......................................... $724,539 <br />PROJECT COSTS TOTAL ................................................ $4,759,809 <br />Interest ................................................................................ $3,210,121 <br />PROJECT COSTS TOTAL ............................................. $7,969,930 <br /> <br />See Subsection 1-10, on page 1-6 of the TIF Plan for the full budget <br />authorization. <br />Form of financing: The project is proposed to be financed by a bond issue, pay-as-you-go note, <br />interfund loan, and/or transfer. <br />Administrative fee: Up to 10% of annual increment, if costs are justified. <br />Interfund Loan <br />Requirement: <br />If the City wants to pay for administrative expenditures from a tax increment <br />fund, it is recommended that a resolution authorizing a loan from another <br />fund be passed PRIOR to, or within 60 days of, the issuance of the check. <br />4 Year Activity Rule <br />(§ 469.176 Subd. 6) <br />After four years from the date of certification of the District one of the <br />following activities must have been commenced on each parcel in the District: <br />• Demolition <br />• Rehabilitation <br />• Renovation <br />• Other site preparation (not including utility services such as sewer and <br />water) <br />If the activity has not been started by approximately April 2022, no additional <br />tax increment may be taken from that parcel until the commencement of a <br />qualifying activity. <br />5 Year Rule <br />(§ 469.1763 Subd. 3) <br /> <br /> <br />Within 5 years of certification revenues derived from tax increments must be <br />expended or obligated to be expended. <br /> <br />Any obligations in the District made after approximately April 2023, will not <br />be eligible for repayment from tax increments. <br /> <br /> <br />The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as required <br />pursuant to M.S., Section 469.175, Subd. 3, are included in Exhibit A of the City resolution.