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TIF District Overview <br />Proposed uses: The TIF Plan contains the following budget: <br />Form of financing: <br />Administrative fee: <br />LGA/HACA penalty: <br />Land /Building Acquisition $1,000,000 <br />Site Improvements /Preparation $ 100,000 <br />Public Utilities $200,000 <br />Parking Facilities $100,000 <br />Streets and Sidewalks $100,000 <br />Housing Affordability $500,000 <br />Interest $511,000 <br />Administrative Costs (up to 10 %) $279 000 <br />PROJECT COSTS TOTAL $2,790,000 <br />See Subsection 3 -10, page 3 -5 of the TIF Plan for the full budget <br />authorization. Additional uses of funds are authorized which include <br />inter -fund loans and transfers and bonded indebtedness. <br />Annual collection of tax increments. <br />Up to 10% of annual increment, if costs are justified. <br />The 2001 Legislature eliminated the provisions for a reduction in state <br />tax increment financing aid (RISTIFA) or the alternative qualifying <br />local contribution. <br />Interfund Loan Requirement: If the City wants to pay for administrative expenditures from a tax <br />increment fund, a resolution authorizing a loan from another fund must <br />be passed PRIOR to the issuance of the check. <br />3 Year Activity Rule At least one of the following activities must take place in the District <br />0469.176 Subd. la) within 3 years from the date of certification: <br />• Bonds have been issued <br />• The authority has acquired property within the district <br />• The authority has constructed or caused to be constructed <br />public improvements within the district <br />• The estimated date whereby this activity must take place is <br />July, 2005. <br />4 Year Activity Rule <br />(§ 469.176 Sabd 6) <br />After four years from the date of certification of the District one of the <br />following activities must have been commenced on each parcel in the <br />District: <br />• Demolition <br />• Rehabilitation <br />• Renovation <br />• Other site preparation (not including utility services such as <br />sewer and water) <br />• If the activity has not been started by the approximately July, <br />2006, no additional tax increment may be taken from that <br />parcel until the commencement of a qualifying activity. <br />Page 2 <br />EHLERS <br />