07-09-2002 Council Agenda - Laserfiche WebLink

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Subsection 3 -12. Fiscal Disparities Election Pursuant to MS., Section 469.177, Subd. 3, the EDA or City may elect one of two methods to calculate fiscal disparities. If the calculations pursuant to M.S., Section 469.177, Subd. 3, clause a, (outside the District) are followed, the following method of computation shall apply: (1) The original net fax capacity and the current net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured net tax capacity and no tax increment determination. Where the original net tax capacity is less than the current net tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net fax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. (2) The county auditor shall exclude the retained captured net tax capacity of the authority from the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the lesser of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. The EDA or City shall submit to the County Auditor at the time of the request for certification which method of computation of fiscal disparities the EDA or City elected. The EDA will choose to calculate fiscal disparities by clause a. According to MS., Section 469.177, Subd. 3: (c) The method of computation of tax increment applied to a district pursuant to paragraph (a) or (b) shall remain the same for the duration of the district; except that the governing body may elect to change its election from the method of computation in paragraph (a) to the method in paragraph (b). Subsection 3 -13. Business Subsidies Pursuant to M.S. Sections 116J 993, Subd. 3, the following forms of financial assistance are not considered a business subsidy: (4) (5) A business subsidy of less than $25,000; Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; Redevelopment property polluted by contaminants as defined in section 116J.552, subdivision 3; Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that Economic Development Authority of the City of Little Canada fax Incrcincnt Financing flan for fax Incrnnait Pinmuing District No. 3 -3 3 -6