08-22-1996 - Laserfiche WebLink

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DETERMINATION OF AMOUNT OF ASSISTANCE TO APPLICANT: Within TIF Districts No. 1. 2, and 3 The amount of Tax Increment Financing provided to an applicant will be based, in part, on the analysis of information provided on the application for Tax Increment Financing assistance (Attachment"A"), amount of increment generated by the project as evaluated by the City's Financial and Bond Counsel and the City's economic and redevelopment goals. The standard guideline for assistance is % of the project's annual increment for a term determined by . •': i.:'-- ..• •- ': __ • ._: -- - -- : -- • - - - - - r The level of assistance provided will be evaluated on a case by case basis and may reflect an increase or decrease in assistance dependant upon the level of increase in the tax base, amount of elimination of blight and/or a number of variables that may substantiate the need for assistance. • ; .; ': - : -•fr -- . ofeYf--t-Ite-Eettientie--9evelopment Authority. An adjustment in the amount of assistance that can be provided is at the sole discretion of the Board of the Economic Development Authority as long as the requested uses are legal under the Minnesota State Statues for use of tax increment financing. Within the Development District (herein referred to as the "City" limits) but outside of TIF Districts 41110 The amen evaluation of Tax Increment Financing assistance that could be provided to an applicant will be based on (A) the analysis of information provided on the application for Tax Increment Financing assistance (Attachment "A"), (B) square footage cost of the project, (C) balance available in the Economic Development Authority excess tax increment fund and (D) proof of need for assistance under the "but for" test for use of tax increment financing. TYPES OF ASSISTANCE Within TIF Districts No. 1, 2, and 3 Tax Increment Financing can be provided in either"pay as you go" or"up front"payments. "Pay as you go" is wherein the Mounds View Economic Development Authority compensates the applicant for a predetermined amount for a predetermined number of years. The applicant pays for(re)development up front and then annual payments are issued to the applicant based on the need for assistance and increment generated from the project. "Up front' payments is wherein the Mounds View Economic Development Authority must issue revenue or general obligation bonds to pay for the (re)development prior to completion of the project. The increment generated from the project is then used for repayment of the bonds. The Mounds View Economic Development Authority gives preference to the use of"pay as you go" assistance to finance private development projects due to the reduced risk to the community. The EDA will consider"up front" payment projects that would benefit the entire community. • 2