Agenda Packets - 1997/04/28 - Laserfiche WebLink

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• I. Sources of Revenue for Public Costs Tax increment financing is one source of revenue for public costs. The EDA may also use all other available sources to finance project costs. J. Estimate of Tax Increment The estimate of tax increment and assumptions are set forth in the following sections of this Tax Increment District Plan: Sections K, L and M. K. I 'do . ► • . . . I . • Pursuant to Section 469.177, Subd. 1, of the Tax Increment Act, the Original Net Tax Capacity Value ("ONTC") for the Tax Increment District is estimated to be $19,708 on all taxable real property within the Tax Increment District. Pursuant to Section 469.177, Subd. 1 and 2 of the Tax Increment Act, the County Auditor shall certify in each year the amount by which the original net tax capacity value has increased or decreased as a result of a change in tax exempt property within the Tax Increment District, reduction or enlargement of the Tax Increment District or changes in connection with previously issued building permits. In any year in which the current net tax capacity value of the Tax Increment District declines below the "ONTC," no net tax capacity will be captured and no tax increment will be payable to the City. The City intends to capture 100% of the tax increments that are generated for a period of not more than twenty-five (25) years beginning in 1999. L. ' • The current net tax capacity value is the same as the original net tax capacity value estimated in Subsection K. M. 11 . . 1 . I • • ► . . 1 . ' . • I • 11 • I Pursuant to Section 469.177, Subd. 1, 2 and 4 of the Tax Increment Act, the estimated captured net tax capacity value and anticipated tax increment in the Tax Increment District follows: Future Estimated Market Value (1998/99) $1,580,000 Current Estimated Market Value (1996/97) $ 463,200 Estimated Captured Market Value (1998/99) $1,116,800 Future Estimated Tax Capacity (1998/99) $ 71,080 Current Estimated Tax Capacity (1996/97) $ 19,708 Estimated Captured Tax Capacity (1998/99) $ 51,372 Current Tax Rate (1996/97) 136.338% Projected Tax Increment (1998/99) $ 70,040 The EDA expects to use 100% of the captured net tax capacity and the resulting increments, beginning in the 1999 collection year. The estimates used for projecting tax increment revenues assume that V.B. Digs will construct a new facility which provides space for a maximum of eight (8) volleyball courts. V.B. Digs has estimated that total construction costs to complete a facility designed to accommodate up to eight (8) volleyball courts could amount to$1,975,000. It is possible that fewer than eight(8) volleyball courts could be built.