Agenda Packets - 1997/04/28 - Laserfiche WebLink

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These conditions qualify the district as a Redevelopment Tax Increment District pursuant to Minnesota Statutes, Section 469.174, Subd. 10(a)(1). No tax increment shall in any event be paid to the EDA from the Tax Increment District after twenty-five (25) years from the date of the receipt of the first tax increment or after the goals of this TIF Plan have been satisfied, whichever comes first. Modification of this TIF Plan pursuant to Section 469.176, Subd. 4, of the Tax Increment Act shall not extend the durational limits of the provision. At least ninety percent (90%) of the tax increment derived from the Tax Increment District will be used for redevelopment-related costs in accordance with Section 469.176, Subd. 4(j). 4. If, after four (4) years from the date of certification of the original net tax capacity value of the Tax Increment District pursuant to Section 469.177 of the TIF Act, no demolition, rehabilitation or renovation of property or other site preparation, including improvement of a street adjacent to a parcel but not installation of an underground utility service, has been commenced on a parcel located within the Tax Increment District by the EDA 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 net tax capacity value of that parcel shall be excluded from the original net tax capacity value of the Tax Increment District. If the EDA or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel, including improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the EDA shall certify to the County Auditor that the activity has commenced, and the County Auditor shall certify the net tax capacity value thereof as most recently certified by the Commissioner of Revenue and add it to the original net tax capacity value of the Tax Increment District. For purposes of this subdivision, "parcel" means a tract or plat of land established as a single unit for purposes • of assessment. 5. Pursuant to Section 469.1763, Subd. 2 of the TIF Act, at least seventy-five percent (75%) of the revenue derived from tax increments paid by properties in the Tax Increment District will be expended on "Activities" in the Tax Increment District or to pay bonds, to the extent that the proceeds of the bonds were used to finance "Activities" in the Tax Increment District or to pay, or secure payment of, debt service on credit enhanced bonds. No more than twenty- five percent(25%) of the revenue derived from tax increment paid by properties in the Tax Increment District will be expended, through a development fund or otherwise, on "Activities" outside of the Tax Increment District but within the respective Project except to pay, or secure payment of, debt service on credit enhanced bonds. All administrative expenses are considered to be expended outside of the Tax Increment District. 6. Pursuant to Section 469.1763, Subd. 3 of the TIF Act, revenues derived from tax increments will be considered as expended within the Tax Increment District only if: (a) before or within five (5) years after certification of the Tax Increment District, the revenues are actually paid to a "Third Party" with respect to the "Activity"; (b) bonds, the proceeds of which must be used to finance the "Activity," are issued and sold to a "Third Party" before or within five years after certification, the revenues are spent to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably expected to be spent before the end of the later of(i) the five- year period, or (ii) a reasonable temporary period within the meaning of the use of • that term under section 148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve or replacement fund;