10-27-1999 Council Agenda - Laserfiche WebLink

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TIF District No. 3 -2 2.6 Economic Parameters for District There are three basic economic parameters for a tax increment financing district: Original Net Tax Capacity, Original Tax Rate and Captured Tax Capacity. 2.6.1 Original Net Tax Capacity The Original Net Tax Capacity represents the base value of the District. Property tax revenue produced by the Original Net Tax Capacity will be paid to applicable taxing jurisdictions. Generally, revenues produced by the tax capacity value of property in the District exceeding the Original Net Tax Capacity will become tax increment revenues. The estimated Original Net Tax Capacity for District No. 3 -2 is $293,077. $193,350. TL; The amount the Original Net Tax Capacity may increase or decrease as a result of: 1. change in tax exempt status of property; 2. reduction or enlargement of the geographic boundaries of the district; 3. change due to adjustments, negotiated or court- ordered abatements; 4. change in the use of the property and classification; or 5. change in state law governing class rates. The County Auditor shall certify in each year after the date the Original Net Tax Capacity was certified (beginning in payment year 1998) any changes in th Original Net Tax Capacity.' 2.6.2 Original Tax Rate The Original Tax Rate for District No. 3 -2 will be the total tax rate for taxes payable 1996. The current tax rate is 146.717 %. If the total tax rate exceeds the Original Tax Rate, the portion in excess will not produce tax increment revenue. 2.6.3 Estimated Captured Net Tax Capacity Value /Increment Captured Tax Capacity equals the amount of tax capacity value within the District in excess of the Original Net Tax Capacity and retained by the City for this Plan.' Captured Tax Capacity will be created by the redevelopment of parcels within the District. The total amount of Captured Tax Capacity is a function of development activity over the life of the District. Tite of ly the rc labilitat;on of the Mai u,ut vu[p�vpvaai a� Assunung that i urC. the %alu.. of tla, c.utu to 1973 Icv ,la, the C;ty would Lap 1C $41,600 ;n tat capacity. th;o a.t;v;ty would pioducc $60,741 • anuu t vcnuc. In 1998, the City reported $22,322 in Captured Tax Capacity with $25,270 in tax increment revenue. It is estimated that the 1999 modifications, upon completion of the redevelopment, will add $25,806 to the Minnesota Statutes Section 469.177, Subds. 1 and 2. Minnesota Statutes, Section 469.174 Subdivision 4 and Minnesota Statutes, Section 469.177, Subdivision 1, 2, and 4 5$900,000 in estimated market value multiplied by 4.60% (statutory factor for commercial - industrial property. Page 147 2 -5