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Page 2 <br /> <br />Authorized uses: <br /> <br /> <br /> <br /> <br /> <br /> <br />The TIF Plan contains a budget that authorizes the maximum amount that <br />may be expended: <br /> <br />Land/Building Acquisition ..................................................... $700,000 <br />Site Improvements/Preparation .............................................. $100,000 <br />Affordable Housing ............................................................... $400,000 <br />Utilities ................................................................................... $100,000 <br />Other Qualifying Improvements ............................................ $121,632 <br />Administrative Costs (up to 10%) .......................................... $236,293 <br />PROJECT COSTS TOTAL ................................................ $1,657,925 <br />Interest ................................................................................... $941,296 <br />PROJECT COSTS TOTAL ............................................. $2,599,221 <br /> <br />See Subsection 2-10, on page 2-5 of the TIF Plan for the full budget <br />authorization. <br />Form of financing: The project is proposed to be financed by a pay-as-you-go note/interfund <br />loan. <br />Administrative fee: Up to 10% of annual increment, if costs are justified. <br />Interfund Loan <br />Requirement: <br />If the City wants to pay for administrative expenditures from a tax increment <br />fund, it is recommended that a resolution authorizing a loan from another <br />fund be passed PRIOR to, or within 60 days of, the issuance of the check. <br />4 Year Activity Rule <br />(§ 469.176 Subd. 6) <br />After four years from the date of certification of the District one of the <br />following activities must have been commenced on each parcel in the District: <br />• Demolition <br />• Rehabilitation <br />• Renovation <br />• Other site preparation (not including utility services such as sewer and <br />water) <br />If the activity has not been started by approximately March 2022, no <br />additional tax increment may be taken from that parcel until the <br />commencement of a qualifying activity. <br /> <br />The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as required <br />pursuant to M.S., Section 469.175, Subd. 3, are included in Exhibit A of the City resolution.