07-09-2003 Council Agenda - Laserfiche WebLink

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property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the City or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the City or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the City shall certify to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The City must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. The City or a property owner must improve parcels within the District by approximately July, 2007 and report such actions to the County Auditor. Subsection 2 -19. Use of Tax Increment The City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for one or more of the following purposes: 1. To pay the principal of and interest on bonds issued to finance a project; 2. To pay for project costs including as identified in the budget set forth in the TIF Plan; 3. To finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 4. To pay principal and interest on any loans, advances or other payments made to or on behalf of the City or for the benefit of Development District No. 2 by a developer; 5. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to MS., Chapter 462C. MS., Sections 469.152 through 469.165, and /or MS., Sections 469.178; and 6. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and /or MS., Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by MS., Section 469.176, Subd. 4. Tax increments generated in the District will be paid by Ramsey County to the City for the Tax Increment Fund of said District. The City will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Remaining increment funds will be used for City administration (up to 10 percent) and the costs of public improvement activities outside the District. Subsection 2 -20. Excess Tax Increments Pursuant to MS., Section 469.176, Subd 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the TIP Plan, including the amount necessary to cancel any tax levy as provided in MS., Section 475.61, Subd. 3, the City shall use the excess amount to do any of the following: City of Little Canada Tax Increment Financing Plan for Tax Increment Financing District No. 2 -2 2 -9