12-02-2020 Council Packet - Laserfiche WebLink

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Little Canada Economic Development Authority Modification to the TIF Plan for Tax Increment Financing District No. 3-3 7 Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Redevelopment Project Area No. 1, upon completion of the projects within the District, will annually approximate tax increment revenues as shown in the table below. The EDA and City request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2004. The Project Tax Capacity (PTC) listed is an estimate of values when the projects within the District are completed. Note: Tax capacity includes a 2% inflation factor for the duration of the District. The tax capacity included in this chart is the estimated tax capacity of the District in year 25. Pursuant to M.S., Section 469.177, Subd. 4, the EDA shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. Sources of Revenue/Bonds to be Issued The total estimated tax increment revenues for the District are shown in the table below: The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The EDA or City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District will be financed by pay-as-you-go notes and interfund loans. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the EDA or City to incur debt. The EDA or City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. Project estimated Tax Capacity upon completio $287,468 Original estimated Net Tax Capacity $18,448 Fiscal Disparities $0 Estimated Captured Tax Capacity $269,021 Original Local Tax Rate 103.1450% Pay 2003 Estimated Annual Tax Increment $277,481 Percent Retainted by the City 100% Project Tax Capacity SOURCES Tax Increment 4,938,417$ Interest 493,842 TOTAL 5,432,259$