10-27-1999 Council Agenda - Laserfiche WebLink

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TIF District No. 3 -2 Captured Tax Capacity and produce $34,850 in annual tax increment at the current tax rate and $37,862 at the Original Tax Rate. The City anticipates that other development will occur and produce tax increment revenues. Each project will be analyzed individually based on estimated assessable value and current statutory factors. The City also sets the following parameters concerning the Captured Tax Capacity: • The City requests 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 1998. • The City elects to exclude the property in District No. 3 -2 from contributions to the Metropolitan Fiscal Disparities Program.' Under the Program, 40% of the value of commercial - industrial development is contributed to Fiscal Disparities. This election allows the City to retain all of the Captured Tax Capacity in the District. The contribution will come from the value of property outside of the District. The City has the authority to change the form of contribution in the future. 2.7 Finance Plan This Tax Increment Financing Plan is intended to serve as a tool for the redevelopment of the Rice Street and Little Canada Road area. This section describes the financial components of the use of tax increment financing within the District. 2.7.1 Use of Tax Increment This Plan creates the basis for the use of tax increment financing to promote the objectives of the Plan and the Development Guide. It is anticipated that tax increments will be used over a multi -year period to pay for expenditures identified herein necessary to facilitate the redevelopment and development of property in District No. 3 -2. It is further anticipated that the City will define the specific development activities to occur and the uses of tax increment in development agreements related to each phase of development. All revenues derived from tax increment shall be used in accordance with the tax increment financing plan, pursuant to Minnesota Statutes, Section 469.176, Subdivision 4 and Section 273.1399, Subdivision 1. The revenues shall be used for the following purposes: 1. to pay the principal of and interest on bonds used to finance a project; 2. to finance, or otherwise pay the capital and administration costs of the Development District pursuant to the Development District Act; 3. to pay for project costs as identified in this Plan; and 4. to finance, or otherwise pay for other purposes as provided in Section 469.176, Subd. 4, of the Tax Increment Financing Act. 6 See Minnesota Statutes, Section 469.177, Subdivision 3, clause (a). 'See Minnesota Statutes, Section 469.177, Subdivision 3, clause (c). Page 148 2 -6