2007.02.20 EDA Packet - Laserfiche WebLink

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City of Hugo, Minnesota Section U Limitation on Property Not Subject to Improvements-Four Year Rule If after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an adjacent street has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualified improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The City must submit to the County Auditor, by February 1 of the fifth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the City or owner of the parcel subsequently commences any of the above activities, the City shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net.tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. Section V Estimated Impact on Other Taxing Jurisdictions Exhibit V shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The City believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. The fiscal and economic implications of the proposed tax increment financing district, as pursuant to Minnesota Statutes, Section 469.175, Subdivision 2,are listed below. 1. The total amount of tax increment that will be generated over the life of the district is estimated to be $43,936,950. 2. To the extent the project in TIF District 1,-2 generates any public cost impacts on city-provided services such as police and.fire protection, public infrastructure, and the impact of any general obligation tax increment bonds attribute to the district upon the ability to issue other debt for general fund purposes, such costs will be levied upon the taxable net tax capacity of the City, excluding that portion captured by the District. 3. The amount of tax increments over the life of the district that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is estimated to be$9,387,794. 4. The amount,of tax increments over the life of the district that would be attributable to county levies, assuming the,county's share of the total local tax rate for all taxing jurisdictions remained the same is estimated to be$13,581,090. 5. No additional information has been requested by the county or school district that would enable it to determine additional costs that will accrue to it due to the development proposed for the district. Section W Prior Planned Improvements Various permits have been issued for a property within the TIF District within the last 18 months and are listed below: PID Address Date Issued Valuation Permit# 2003121240065 5582146th St N 9111/2006 2,000.00 2006-01730 SPRINGSTED Page 12