11-13-2002 Council Agenda - Laserfiche WebLink

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Pursuant to MS, Section 469.176, Subd. 5, no more than 10 percent, by acreage, of the property to be acquired in the District as set forth in the Plan shall at any time be owned by the EDA or City as a result of acquisition with the proceeds of bonds issued pursuant to MS., Section 469.178 to which tax increments from property acquired is pledged, unless prior to acquisition in excess of 10 percent of the acreage, the EDA or City concluded an agreement for the development ofthe property acquired and which provides recourse for the EDA or City should the development not be completed. Subsection 3 -24. Assessment Agreements Pursuant to M.S., Section 469.177, Subd 8, the EDA or City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the County Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. Subsection 3-25. Administration of the District Administration of the District will be handled by the City Administrator. Subsection 3 -26. Annual Disclosure Requirements Pursuant to MS., Section 469.175, Subd. 5, 6 and 6a the EDA or City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board, County Auditor and School Board on or before August 1 of each year. MS., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. I'f the City fails to make a disclosure or submit a report containing the information required by M.S. Section 469.175 Subd. 5 and Subd. 6, the OSA will direct the County Auditor to withhold the distribution of tax increment from the District. Subsection 3 -27. Reasonable Expectations As required by the TIP Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration ofthe District permitted by the Plan. In making said determination, reliance has been placed upon written representation made by the developer to such effects and upon EDA and City staff awareness orthe feasibility of developing the project site. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. Economic Development Audio ritv of Ilse City of Little Canada "ran Increment Financing Plan f or fax lneranent Einmtcine. District