Laserfiche WebLink
• III. INTEREST REDUCTION PROGRAM <br /> The establishment and carrying out of the Interest Reduction Program <br /> are hereby approved. Under the Interest Reduction Program, the HRA will pay up <br /> to $50,000 per year to LaNel from excess tax increment from the District available <br /> from taxes payable with respect to the Development in the years 1991, 1992 and 1993. <br /> In developing the Interest Reduction Program the HRA has considered (i) the <br /> availability and affordability of other governmental programs; (ii) the availability <br /> and affordability of private market financing; and (iii) the need for additional <br /> mortgage credit to encourage the construction and enable the purchase of housing <br /> units within the,jurisdiction of the HRA. The HRA intends to enter into an <br /> agreement with LaNel meeting the requirements of Minnesota Statutes, Section <br /> 469.012, subdivision 9, with respect-to the Interest Reduction Program and such <br /> agreement shall contain the rules of the HRA for the Interest Reduction Program. <br /> IV. ADDITIONAL EXPENDITURE OF TAX INCREMENT <br /> The costs proposed to be paid by the HRA or City with respect to the <br /> Interest Reduction Program from tax increment derived from.the District are as <br /> follows: <br /> • Interest Reduction <br /> Assistance $150,000 <br /> Administrative 10,000 <br /> Total $160,000 <br /> The use of tax increment derived from the District to pay the costs of <br /> the Interest Reduction Program is hereby authorized. Such costs are expected to be <br /> paid directly from tax increment derived from the District. It is not expected that <br /> any obligations will be issued by the City or HRA to finance such costs. <br /> V. FISCAL AND ECONOMIC IMPLICATIONS OF ADDITIONAL <br /> EXPENDITURES <br /> .It is estimated fiscal and economic implications of the additional <br /> expenditures of tax increment revenue derived from the District for the Interest <br /> Reduction Program as authorized by these 1992 Amendments will be as follows: <br /> The local governmental units other than the City which are authorized <br /> by law to levy ad valorem property taxes in the area where the District is located and <br /> Independent School District No. 282, Hennepin County, the HRA, and various <br /> metropolitan area authorities, including the Metropolitan Council, the <br /> -3- <br />