10-03-2022 Council Work Session Packet

Home Search

City of Lino Lakes and Lino Lakes Economic Development Authority Baker Tilly Municipal Advisors, LLC Page 7 Estimated Public Costs Estimated Amount Land/Building acquisition $0 Site Improvements/Preparation costs $2,672,614 Utilities $0 Other public improvements $600,000 Construction of affordable housing $0 Administrative expenses $172,240 Total Estimated Public Costs $3,444,854 Interest expenses $0 Total Costs $3,444,854 The Authority reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public costs ($3,444,854) do not increase. The Authority also reserves the right to fund any of the identified costs with any other legally available revenues, such as grants and/or loans, but anticipates that such costs will be primarily financed with tax increments. Section L Estimated Sources of Revenue Estimated Sources of Revenue Estimated Amount Tax Increment revenue $3,444,854 Interest on invested funds Total $3,444,854 The Authority anticipates providing financial assistance to the proposed development through pay-as-you- go financing in which the City will provide funding to the development. As revenues are collected from the TIF District in future years, a portion will be retained by the City and the remaining funds will be provided as reimbursement for certain identified costs as necessary within the TIF District to assist with financing the public costs incurred (see Section K). The City reserves the right to finance any or all public costs of the TIF District using pay-as-you-go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The Authority also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. The projected tax increment report is included as Exhibit III. Section M Estimated Amount of Bonded Indebtedness The maximum principal amount of bonds (as defined in the TIF Act) secured in whole or part with tax increment from the TIF District is $3,444,854. The Authority currently plans to finance the public costs through pay-as-you-go financing. The Authority reserves the right to issue an interfund loan or issue bonds in any form, including without limitation any interfund loan with interest not to exceed the maximum permitted under Section 469.178, subd. 7 of the TIF Act.