Agenda Packets - 1997/04/28 - Laserfiche WebLink

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fie (c) binding contracts with a "Third Party" are entered into for performance of the "Activity" before or within five years after certification of the Tax Increment District and the revenues are spent under the contractual obligation; or (d) costs with respect to the "Activity" are paid before or within five years after certification of the Tax Increment District and the revenues are spent to reimburse a party for payment of the costs, including interest on unreimbursed costs. For the purpose of this Subsection, bonds include subsequent refunding bonds if the original refunded bonds meet the requirements of clause (b) above. 7. Pursuant to Section 469.1763, Subd. 4 of the TIF Act, beginning with the sixth year following certification of the Tax Increment District, seventy-five percent (75%) of the revenues derived from tax increments paid by properties in the Tax Increment District that remain after permitted expenditures will be used only to pay outstanding bonds; contracts, as defined in clauses 6(c) and 6(d); or certain credit enhanced bonds as set forth in Section 469.1763, Subd. 4 of the TIF Act. When the outstanding bonds have been defeased and when sufficient money has been set aside to pay contractual obligations, the Tax Increment District will be decertified and the pledge of tax increment discharged. 8. Minnesota Statutes, Section 469.1771, provides that the State Auditor shall enforce the tax increment law. Increments expended on purposes that are not permitted or outside the permitted area of expenditure must be paid to the County Auditor, subject to some limitations. . 9. Applicable Definitions (a) "Activities" means acquisition of property, clearing of land, site preparation, soils correction, removal of hazardous waste or pollution, installation of utilities, construction of public or private improvements, and other similar activities, but only to the extend that tax increment revenues may be spent for such purpose under the law. (b) "Third Party" means an entity other than (1) the person receiving the benefit of assistance financed with tax increments, or (2) the City or EDA or other person substantially under the control of the City. E. Limitation on Administrative Expenses Pursuant to Section 469.176, Subd. 3, of the Tax Increment Finance (TIF) Act, no tax increment shall be used to pay any administrative expenses for the Tax Increment District which exceed ten percent (10%) of the total tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the Tax Increment District, whichever is less. The EDA intends to retain the maximum allowable administrative reimbursement permitted by the TIF Act. F. Parcels for Acquisition 1. Any properties identified for acquisition will be acquired by the EDA only in order to accomplish one or more of the following: storm sewer improvements, provide land for needed public streets, utilities and facilities, carry out clearance and/or development to accomplish the uses and objectives set forth in this Plan.