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tax increment expenditures or designation of additional properly to be acquired by the authority shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original plan. The geographic area of a tax increment financing district may be reduced, but shall not be enlarged after five years following the date of certification of the original tax capacity by the county auditor. The tax increment financing redevelopment district may therefore be expanded until 1993. O. Limitation on Administrative Expenses In accordance with Minnesota Statutes, Section 469.174, Subdivision 14 and Minnesota Statutes, Section 469.174, Subdivision 3, 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. Administrative expenses includes amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. No tax increment shall be used to pay any administrative expenses for a project which exceed ten percent 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. P. Limitation on Duration of Tax Increment Financing Districts Pursuant to Minnesota Statutes, Section 469.176, Subdivision 1, "no tax increment shall be paid to an authority... three years from the date of certification... by the County Auditor... unless within the three-year period (1) bonds have been issued pursuant to Section 469.178 or in aid of a project pursuant to any other law, except revenue bonds issued pursuant to Minnesota Statutes, Sections 469.152 through 469.165, prior to August 1, 1979; or (2) the authority has acquired property within the district; or (3) the authority has constructed or caused to be constructed public improvements within the district..." The City must therefore issue bonds, or acquire property, or construct or cause public improvements to be constructed by 1991 or the Office of the County Auditor may dissolve the tax increment financing district. Q. Limitation on Qualification of Property in Tax Increment District Not Subject to Improvement Pursuant to Minnesota Statutes Section 469.176, Subdivision 6, "if, after four years from the date of certification of the original assessed value of the tax increment financing district..., no demolition, rehabilitation or renovation of parcel or other site preparation including improvement of a street adjacent to a property but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original assessed value of that parcel shall be excluded from the original assessed value of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation City of Mounds View TIF District No. 3 Modification 12 1 P a g e