06-20-11 Council Agenda - Laserfiche WebLink

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activities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 20 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the District. 1 Five Year Liin tation on Commitnentof Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 80 percent test set forth in paragraph (2) above only if the five year rule set forth in MS., Section 469.1763, Subcl. 3, has been satisfied; and beginning with the sixth year following certification of the District, 80 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd.. 5. 4. Renewal and Renovation District. At least 90 percent of the revenues derived from tax increment from a renewal and renovation district must be used to finance the cost of correcting conditions that allow designation of renewal and renovation districts under MS., Section 469.176 Subd. 4j. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of the land, the removal of hazardous substances or reined iati on necessary for development of the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the City, including the cost of preparation of the development action response plan, may be included in the qualifying costs. (AS MODIFIED ON , 2011 TO INCLUDE NEW LANGUAGE IN CURRENT LAW) In 2009 M.S., Section 469.1763, Subd. 3 was amended to include Subd 3(c) which reads: For a redevelopment district or a renewal and renovation district certified after Jtute 30, 2003 and before April 20, 2009, the five -year periods described in paragraph (a) are extended to ten years after certification of the district. This extension is provided primarily to accommodate delays in development activities due to the unanticipated economic circumstances. Since this TIF District meets the requirement of the updated language in the law, the new date by which qualifying activities must take place is June, 2017 Subsection 2 -28. Summary The City of Little Canada is establishing the District to preserve and enhance the tax base, redevelop substandard areas, and provide employment opportunities in the City. The TIF Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113, telephone (65 1) 697 -8500. City of tittle Canada Tax Increment Financing Plan Fn. Tax Increment Financing District No. 5.1 2 -13 24