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explicit in stating that it is a limited revenue obligation and not a general <br /> obligation of the EDA. <br /> 4110 b. The Developer receives a portion of the local property taxes that theypay <br /> as a reimbursement for expenses to develop the property. <br /> c. The Developer Agreement would need to be amended to allow other <br /> increments, besides the project increments, to be used to pay the TIF Note. <br /> 3.) Tax Increment Law Issues: <br /> a. Tax Increment District No. 1 is a Redevelopment District. Any increment <br /> expended must be in accordance with the TIF law and the requirements <br /> associated with this type of TIF District. There may be limitations on <br /> what types of expenditures qualify as legal reimbursements. If the EDA <br /> were to consider the proposal of additional TIF District No. 1 funds being <br /> used for leasehold improvements care should be taken to be sure that the <br /> costs being reimbursed were within the law. <br /> According to documents found in EDA files, it appears that, for taxes payable in 2003, <br /> the market value of the building is near what the original estimates projected. There is a <br /> question as to whether the market value would be greater if the building was fully rented. <br /> If this is the case, and the building would be fully rented in the future, more increment <br /> would be available to apply to the TIF note. Be aware that the interest continues to <br /> accrue,which means the balance of the TIF note increase, as the unpaid interest is added <br /> to the principal of the note. As the contract is currently structured, the EDA has a limited <br /> responsibility for the obligation. That responsibility is only to the extent that increments <br /> are generated from the project property. <br /> • 3060 Centre Pointe Drive (651)-697-8504 Fax:(651)697-8555 <br /> Roseville,MN 55113-1105 Shelly@ehlers-inc.com <br /> http://www.ehlers-inc.com <br />