07-09-2003 Council Agenda - Laserfiche WebLink

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TIF Plan by the municipality pursuant to MS., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and determined that no building permits have been issued during the 18 months immediately preceding approval of the TIP Plan by the City. Subsection 2 -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 City reserves the right to use other sources of revenue legally applicable to the City and the TIP 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 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 pay -as- you -go note. Additional indebtedness, such as a G.O. TIF bond issue or an interfund loan/transfer, 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 $900,000 without a modification to the TIF Plan pursuant to applicable statutory requirements. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The City may also finance the ac- tivities to be undertaken pursuant to the TIF Plan through loans from funds of the 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 below. SOURCES OF FUNDS TOTAL Tax Increment $1,564,000 PROJECT REVENUES 81,564,000 Subsection 2 -10. Uses of Funds Currently under consideration for the District is a proposal to facilitate the construction of a building trades office and training facility and future development on the former Knox Lumber site. The City has determined that it will be necessary to provide assistance to the project for certain costs. The City has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the table on the following page. USES OF FUNDS TOTAL Renewal and Renovation Expenses $100,000 Site Improvements /Preparation Costs including Demolition $864,000 City of Little Canada Tax Increment Financing Plan For Tax Increment Financing District No. 2 -2 2 -4