Agenda Packets - 1997/04/28 - Laserfiche WebLink

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• Assuming that Estimated Market Value is calculated at eighty percent (80%) of the estimated construction costs, the Estimated Market Value of the completed facility is projected to be $1,580,000. The EDA acquired Parcel No. 08-30-23-24-0056 in 1996 from a private owner and later transferred ownership to the City. The original value of the proposed Tax Increment District reflects the most recently finalized value for the property that has been acquired by the City of Mounds View and for Parcels No. 08-30-23-24-0055 and No. 08-30-23-24-0054 as follows: Parcel Estimated Market Value Net Tax Capacity 0056 $425,000 $17,950 0055 $ 19,100 $ 879 0054 $ 19,100 $ 879 The original value may be subject to adjustment pursuant to the proposal for the EDA and/or the City to own a portion of the property and to lease a portion of the property to V.B. Digs and to various tax- exempt and taxable organizations. Without specific knowledge regarding the ultimate tenant mix and property tax status, precise estimates of adjustments to the original tax capacity are difficult to determine at this time. All valuations projected by the Tax Increment District are subject to change depending upon a variety of circumstances. Tax capacity projections assume that all leased or privately owned property will be valued as 111 Commercial-Industrial (3a) property with the first $100,000 of estimated market value assessed at a rate of 3.0% and value over $100,000 assessed at a rate of 4.6%. These assumptions could change resulting from any Legislative changes. N. Fiscal Disparities The City of Mounds View elects the method of tax increment computation pursuant to Minnesota Statutes, Section 469.177, Subdivision 3, clause (a). Consequently, the Tax Increment District shall elect to spread the fiscal disparities contribution outside the Tax Increment District. The ability of the City of Mounds View to elect Option A currently allowed by Section 469.177, Subdivision 3, clause (a) may be changed by the Legislature. Should legislative action occur which might eliminate the election option, the amount of captured tax capacity within the Tax Increment District could be reduced by an amount up to forty percent(40%). O. . . i • n • i •• • _ • • • i • . . i • •• • I • • •s_ 1• The tax increment received with respect to the Tax Increment Financing District shall be segregated by the EDA in a special account or accounts on its official books and records. P. Duration of the District Pursuant to Section 469.176, Subd. 1, of the Tax Increment Act, the duration of the Tax Increment District will be no more than twenty-five (25) years after the date of receipt by the EDA of the first full tax increment or the point at which the Tax Increment District Plan has been satisfied. The projected date of receipt by the EDA of the first tax increment will be approximately July 15, 1999.