10-27-1999 Council Agenda - Laserfiche WebLink

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TIF District No. 3 -2 The City anticipates using Tax Increment as the primary source of revenue to support the Finance Plan. The City reserves the right to use other sources of revenue legally available including, but not limited to, Developer payments, special assessments, general property taxes, utility revenues, investment income and County, State or Federal funds. 2.7.3 Bonded Indebtedness The City reserves the right to incur bonded indebtedness as a result of the Tax Increment Financing Plan. As presently proposed, the amount of bonded indebtedness related to the use of tax increment financing would not exceed $5,000,000. Tl,c City glans to is .51.“. In 1995, the City issued G.O. Taxable Tax Increment Obligation Bonds in the amount to $1,970,000 to finance the acquisition and rehabilitation of the Market Place shopping center. The 1995 Bonds were retired in 1998. The debt may incurred in one or a series of bond issues. This provision does not obligate the City to incur additional debt. The City will issue bonds 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 Tax Increment Financing Plan through loans from funds of the City or to reimburse the Developer on a "pay -as- you -go" basis for eligible activities paid for by the Developer. Bonds issued by the City will contain sufficient discount as determined by the City and its advisors. Capitalized interest may also be needed to provide the adequate flow of funds for each bond issue. The amounts listed below represents estimates for the purpose of this Plan. The amounts may be pro -rated among individual financings. Estimated Total Debt $5,000,000 Discount 85,000 Capitalized Interest 800,000 2.7.4 Administrative Expense No tax increment shall be used to pay any administrative expenses for the tax increment financing district which exceed ten percent (10 %) of the total tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the project, whichever is less. Administrative expenses means all expenditures of an authority other than amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the district, relocation benefits paid to or services provided for persons residing or businesses located in the district or amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to Section 469.178.8 Administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. The amount below represents an estimate for the purposes of this Plan. The actual administrative expense will be determined by the implementation of the Plan and the receipt of tax increment. Administration $300,000 Pursuant to Minnesota Statutes, Section 469.176, Subdivision 4h, tax increments may be used to pay for the county's actual administrative expenses incurred in connection with District No. 3 -2. The county may 8 Minnesota Statutes, Section 469.174, Subdivision 14, and Minnesota Statutes, Section 469.176, Subdivision 3 Page 150 2 -8