Laserfiche WebLink
City of Little Canada Tax Increment Financing Plan for Tax Increment Financing District No. 7-2 2-13 <br />before August 1 of each year. M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be <br />published in a newspaper of general circulation in the City on or before August 15. <br />If the City fails to make a disclosure or submit a report containing the information required by M.S., Section <br />469.175 Subd. 5 and Subd. 6, the Office of the State Auditor will direct the County Auditor to withhold the <br />distribution of tax increment from the District. <br />Subsection 2-26. Reasonable Expectations <br />As required by the TIF Act, in establishing the District, the determination has been made that the anticipated <br />development would not reasonably be expected to occur solely through private investment within the <br />reasonably foreseeable future and that the increased market value of the site that could reasonably be expected <br />to occur without the use of tax increment financing would be less than the increase in the market value <br />estimated to result from the proposed development after subtracting the present value of the projected tax <br />increments for the maximum duration of the District permitted by the TIF Plan. In making said <br />determination, reliance has been placed upon written representation made by the developer to such effects <br />and upon City staff awareness of the feasibility of developing the project site(s) within the District. A <br />comparative analysis of estimated market values both with and without establishment of the District and the <br />use of tax increments has been performed as described above. Such analysis is included with the cashflow <br />in Appendix D, and indicates that the increase in estimated market value of the proposed development (less <br />the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the <br />District and the use of tax increments. <br />Subsection 2-27. Other Limitations on the Use of Tax Increment <br />1. General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF <br />Plan. The revenues shall be used to finance, or otherwise pay the capital and administration costs of <br />Development District No. 7 pursuant to M.S., Sections 469.124 to 469.133. Tax increments may not be <br />used to circumvent existing levy limit law. No tax increment may be used for the acquisition, <br />construction, renovation, operation, or maintenance of a building to be used primarily and regularly for <br />conducting the business of a municipality, county, school district, or any other local unit of government <br />or the state or federal government. This provision does not prohibit the use of revenues derived from tax <br />increments for the construction or renovation of a parking structure. <br />2. Pooling Limitations. At least 80 percent of tax increments from the District must be expended on <br />activities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to finance <br />activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not <br />more than 20 percent of said tax increments may be expended, through a development fund or otherwise, <br />on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced <br />bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they <br />were solely for activities outside of the District. <br />3. Five Year Limitation on Commitment of Tax Increments. Revenues derived from tax increments paid <br />by properties in the District shall be deemed to have satisfied the 80 percent test set forth in paragraph <br />(2) above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and <br />beginning with the sixth year following certification of the District, 80 percent of said tax increments that <br />remain after expenditures permitted under said five year rule must be used only to pay previously <br />committed expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. <br />5.