2007.03.19 EDA Packet - Laserfiche WebLink

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City of Hugo, Minnesota (4) the City notifies the county auditor that the original tax capacity of the parcel must be adjusted upon filing the request for certification of the tax capacity of the parcel as part of a district. In the case of(4)above, the County Auditor shall certify the original net tax capacity of the parcel to be the greater of (a)the current tax capacity of the parcel, or (b) a computed tax capacity of the parcel using the estimated market value of the parcel for the year in which the demolition or removal occurred, and the appropriate classification rate(s) for the current year. At least 90 percent of the tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation as a redevelopment district. These costs include,,but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of land, removal of hazardous substances or remediation necessary to develop the land, and installation of utilities, roads, sidewalks, and`parking facilities for the site. The allocated administrative expenses of the City may be included in the qualifying costs. Section F Duration of the TIF District Redevelopment districts may remain in existence 25 years from the date of receipt by the City of the first tax increment. Modifications of this plan(see Section 2)shall not extend these fimitations. The City reserves the right to allow the TIF Distal.to remain in existence the maximum duration allowed by law (projected to be through the year 2035 if no inffatioriary increment is received in 2009 however, if that increment is received in 2009 the last year of the district will be 2034), and anticipates that the TIF District may be active for the maximum duration allowed(see Section P), however,the City wi# tify the TIF District as early as possible should the projected increment be received in a shorter time period than`originaHy, projected. All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the City. Section G Property to be Included in TIF District The TIF District is an approximate 93 acre area of land located within the Project Area. A map showing the location of the TIF Distract is shown in Exhibit I. The boundaries and area encompassed by the TIF District are described in Exhibit IL Section H Property to be Acquired in the TIF District The City may acquire and sell any or all of the property located within the TIF District. The City anticipates acquiring available property within the district at any time,and may also finance the direct acquisition of land by the Developer. Section I Specific,Development Expected to Occur Within the TIF District The anticipated development is defined within a study completed by Maxfield Research Inc. in December 2005 entitled An Analysis of the Mafket Potential for Housing, Retail, and Office Uses in Downtown Hugo, Minnesota. The Maxfield study includes the redevelopment of certain properties within the defined district including the construction of approximately 399 to 592 residential housing units,up to 145,500 square feet of retail and 37,700 square feet of office space. The City has been acquiring properties that have previously been found to be substandard within the district and demolishing them in preparation for such redevelopment. The existing buildings that been acquired have been inspected and found to be substandard by resolution. Several of those buildings have since been removed and the site cleared for construction of new development. SPRINGSTED Page 4