12-10-2012 EDA Packet - Laserfiche WebLink

Home Search

Economic Development Authority of the City of Lino Lakes, Minnesota 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 cost is not increased. Original TIF (August 11, 2003) Modification No. 1 July 18, 2011 (DRAFT) Tax increment revenue 915,000 900,000 Interest on invested funds 0 15,000 Other 0 0 Total 915,000 915,000 The Authority initially provided financial assistance to the proposed development within the TIF District through issuance of a pay-as-you-go note in the principal amount of $840,000, without interest. As tax increments were collected from the TIF District, a portion of these taxes were distributed to the developer/owner as reimbursement for public costs incurred. However, the amount paid under the prior note was approximately $550,000 (due to reduction in tax increment revenues because of several factors, including property tax reform). Under this Plan as amended, the Authority estimates additional costs in the amount of $334,000 (see chart above) to finance construction of affordable housing in the Legacy at Woods Edge area, which meets the requirements of Minnesota Statutes, Section 469.1761. Such additional costs represent amounts qualifying under Minnesota Statutes, Section 469.1763, subdivision 2(b) and 4. Subsection S Estimate of Bonded Indebtedness It is not anticipated that TIF Bonds will be sold with regard to TIF District No. 1-5 but the Authority expects to enter into a development agreement with the developer which will contain a revenue obligation in an amount necessary to reimburse the developer for the above costs. As noted in Section R, above, the City may finance additional affordable housing project costs through any obligations permitted under law, provided that any additional bonds or note will not exceed $290,000, such that the total estimated bonded indebtedness from the TIF District does not exceed the original authorized bonded indebtedness of $840,000. Subsection W Estimate of Impact on Other Taxing Jurisdictions The City does not anticipate that modification of the TIF Plan will change the fiscal impacts of the TIF District on other taxing jurisdictions, other than to retain the TIF District for its maximum duration. The original TIF Note was fully paid earlier in 2012, and the City has determined to continue to collect tax increment in order to stimulate development of additional affordable housing. Such additional housing will not be within the TIF District, and as such will not create additional fiscal impacts (other than positive impacts in the form of additional tax base not captured as tax increment). SPRINGSTED Page 2