11-13-2002 Council Agenda - Laserfiche WebLink

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original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City of Little Canada has reviewed the area to be included in the District and has found no building permits that were issued during the 18 months immediately preceding approval of the Plan by the City. Subsection 3 -9. Sources of Revenue /Bonded Indebtedness Public improvement costs, acquisition, relocation, utilities, parking facilities, streets and sidewalks, and site preparation costs and other 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 use other sources of revenue legally ap- plicable to the EDA or City and the TIF Plan, including, but not limited to, special assessments, general property taxes, state aid for road maintenance and construction, proceeds from the sale of land, other contributions from the developer and investment income, to pay for the estimated public costs. The EDA or City reserves the right to incur bonded indebtedness or other indebtedness as a result of the TIF Plan. As presently proposed, the project will be financed by a combination of a pay -as- you -go note /interfund loan /transfer. Additional indebtedness may be required to finance other authorized activities. The total principal amount of bonded indebtedness or other indebtedness related to the use of tax increment financing will not exceed $2,000,000 without a modification to the TIF Plan pursuant to applicable statutory requirements. (AS MODIFIED NOVEMBER 13, 2002) The current expectation is that bonded indebtedness will not exceed S2,000,000 in principal amount through the following obligations: The EDA will issue a pay -as- you -go note to the developers of the Lodge at Little Canada in the approximate amount of $1,050,000 plus interest. The EDA will enter into an interfund loan with the Tax Increment Financing District No. 3 -2 to utilize any land sale proceeds realized from District No. 3 -3 to reimburse District No. 3 -2 for costs of land acquisition incurred with purchase of the Venetian Inn. The acquisition of the Venetian Inn occurred while the property was in District No. 3 -2 but was subsequently included in District No. 3 -3. The EDA will enter into an interfund loan with City capital replacement funds in the amount of approximately $70,000 for costs of relocating utilities in connection with the construction of rental housing related to Common Bond project. 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. The EDA or City may also finance the activities to be undertaken pursuant to the TIF Plan through loans from funds of the EDA or City or to reimburse the developer on a "pay -as- you -go" basis for eligible costs paid for by a developer. The estimated sources of funds for the District are contained in the table on the next page. Gconom ie Devclopm hooly or the City of little Canada Tax increment Financing Plan for Fax Increment Fi nanung District Nr