Agenda Packets - 1986/10/06 - Laserfiche WebLink

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by Minnesota Statutes, Chapter VS. Predicting capitalized Interest prior to Issuance Is extremely difficult as It is a function of interest rates, construction schedules and tax timing; therefore, the given figure Is only an estimate of capitalized interest and Is subject to change. It. Estimated Amount of Loan/Bonded indebtedness An estimate of the amount of bonded indebtedness is expected to be $6,650,000. The term of the issue Is 15 years including 3 years of capitalized Interest and the interest rate is expected to be 10.5 percent. The amount of capitalized interest is estimated to be In a range of $2,100,000 to $2,300,000. L Sources of Revenue Seveao finance ublic costs ociated withrtihesource of developmentnue may projectsbInrfsed thet municipalpdevelopmentssdistrict Including tax Increment finan^_Ing, special assessments, small cities development and federal grant funds. Tax increment financing refers to a funding technique that utilizes Increases In assessed valuation end the property taxes attributed To new development to finance, oe assist In the financing of public development costs. The office/service center, warehouse, and restaurant project Is expected to be fully assessed beginning In 1988 for Stage 1, 1989 for Stage 11, 1990 for Stage III, and 1991 for Stage IV. The development will generste an annual tax Increment of ,'1,052,520 at falof all s of partialtaxessment upon tax Increment m vlebenreceivedf four 1989e based euponp ae partial assessment of the developments should the projects be less th,: i- 100% completed on January 2. 1988. J. Original Assessed Value Pursuant to Minnesota Statutes, Section 273.74, subdivision I and Section 273.76, Subdivision 1, the Original Assessed Value (OAV) for the City of Mounds view tax Increment based on the value placed on the propertybythenredevelopment district County As es orin19851s 'This assessed value Is $2,416,08S. Each year the Office of the County Auditor will measure the amount of increase or decrease in the total assessed value of the tax Increment redevelopment district to calculate the tax Increment payable to the Mounds View redevelopment district fund. in any -year In which there is an Increase in total assessed valuation in the tax ;ncrement redevelopdistrict R60ve the aijusted assessed value, a ts- mIncrementwilt be i payable. In any year in which the total assessed valuation in the -tax Increment financing redevelopment district declines below the original assessed valuation, no assessed valuation will be captured and no tax Increment will be payable. The In er the al AssessedntValue IwasscertifiedFhall certifythe eachyear rthet OAVe has Increased in Increa edor decreased as a result of: 1, change In tax exempt status of property; C.