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TIC' Drslrlcl Overvterv <br />4 Year Activity Rule After four years fran the date of certification of the District one of fire <br />(§ A69.17fi Subd. 6) 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 />wafer) <br />If the activity has not been started by approximately Jmze 2011, no additional <br />tax increment may be taken fi•om that parcel until the eaumcncement of a <br />qualifying activity. <br />5 Year Rule Within 5 years of certification revenues derived from tax increments must be <br />(,¢~ 469.1763 Subd. 3) expended or obligated to be expended. Tax increments are considered to have <br />been expended on an activity within the District if one of the following <br />occw s: <br />• The revenues are actually paid to a third parry with respect to the <br />activity <br />• Bonds, the proceeds of which must be used to finance the activity, are <br />issued and sold to a third party, the revenues are spent to repay the <br />bonds, and the proceeds of the bonds either are reasonably expected to <br />Ue spent before the end of the later of (i) the five year period, or (ii) a <br />reasonable temporary period within the meaning of the use of that term <br />wider §. 148(c)(1) of the Internal Revenue Code, or are deposited in a <br />reasonably required reserve or replacement fund <br />• Binding coaztracts with a third party are entered into for performance of <br />the activity and the revenues are spent under the contaactual obligation <br />• Costs with respect to the activity are pa.ld and the revenues are spent to <br />reimburse for payment of the costs, including interest on unreimbm•sed <br />costs. <br />Any obligations in the District made after approximately June 2012, will not <br />be eligible for repayment from tax increments. <br />The reasons and facts supporting the findings for the adoption of the TIP Plan for the District, as required <br />pursuant to IvlS., Section 469.175, Subd 3, are included in exhibit A of the City resolution. <br />Pnge 2 <br />~l~l_E~S <br />