Agenda Packets - 1997/04/28 - Laserfiche WebLink

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4. to finance or otherwise pay for other purposes as provided in Section 469.176, Subd. 4, of the TIF Act. These revenues shall not be used to circumvent any levy limits. C. Excess Tax Increments Pursuant to Section 469.176, Subd. 2, of the Tax Increment Financing (TIF) Act, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the tax increment financing plan including the amount necessary to cancel any tax levy as provided in Minnesota Statutes, Section 475.61, Subd. 3, the City shall use the excess amounts to: 1. prepay any outstanding bonds; 2. discharge the pledge of tax increment therefor; 3. pay into an escrow account dedicated to the payment of such bonds; or 4. return the excess amount to the County Auditor for distribution as provided in Section 469.176, Subd. 2, of the TIF Act. The EDA expects to spend all tax increment received and in accordance with the TIF Plan and consequently no excess tax increments are anticipated. 1111 D. Limitation of increment/TIF District Classification Pursuant to Section 469.176, Subd. 1(a), of the Tax Increment Financing (TIF) Act: 1. No tax increment shall be paid to the EDA for the Tax Increment District after three (3) years from the date of certification of the original net tax capacity value of the taxable property in the Tax Increment District by the County Auditor unless within the three (3) year period: (a) 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 Chapter 474 prior to August 1, 1979, or (b) the EDA has acquired property within the Tax Increment District or (c) the EDA has constructed or caused to be constructed public improvements within the Tax Increment District. 2. The tax increment pledged to the payment of bonds and interest thereon may be discharged and the Tax Increment District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. 3. The EDA has determined that parcels constituting seventy percent (70%) of the area of the Tax Increment District are occupied by buildings, streets, utilities, or other improvements and more than fifty percent (50%) of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than fifteen percent (15%)of the cost of constructing a new structure of the same square footage and type on the site. Facts and analysis supporting these findings are set forth in Exhibit No. 5.