06-20-11 Council Agenda - Laserfiche WebLink

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Subsection 2 -19. Limitation of Increment The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service Condor other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, .Sued. 6: if, after Jour years from the date of certification of the original net tax capacity of the tax incrremrent ,financing district pursuant to M.S., Section 469.177, no demolit ion, rehabilitation or renovation gf property or other site preparation, including qualified improvement of street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a fax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment fiurncing plan, no additional tax increment 'nay be taken from that parcel and the original net tax capacity (Ohm parcel shall be excluded from the original net lax capacity of the fax increment financing district. if' the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, One authority shall certify to the county auditor that the activity tun commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must snrbmit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidencefor aparcel muss be submitted by February 1 of the fifth yea;.fill /owing the year in which the parcel was certified as ,ncl uded in the district. For purposes of this subdivision, qualified improvements gfa street are !invited to (1) construction or opening gfa new street, (2) relocation ofa street, and (3) substantial reconstruction or rebuilding ofan existing street. The City or a property owner must improve parcels within the District by approximately August, 201 1 and report such actions to the County Auditor. (AS MODIFIED ON , 2011 TO INCLUDE NEW LANGUAGE IN CURRENT LAW) In 2009 IDES., Section 469.176, Subd 6 was amended to include Subd 6(b) which reads: For districts which were certified on or after January 1, 2005, and before April 20, 2009, the four -year period under paragraph (a) is increased to six years. Since this TIP District meets the requirement of the updated language itt the law, the new date by which qualifying activities must take place on or adjacent to any parcel in the District is June, 2013. Subsection 2 -20. Use of Tax Increment The City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: To pay the principal of and interest on bonds issued to finance a project; 2. 1•o finance, or otherwise pay the capital and administration costs of Development District No. 5 pursuant to the rv1.S., Sections 469,124 to 469.134; Cite a Little Canada Tax Increment Financing Plan Rn Tax Ineremota Financing District No. 5-1 2 -15 21