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City of Hugo, Minnesota <br /> (5) The City does not elect the method of tax increment computation set forth in Minnesota Statutes, <br /> Section 469.177,Subdivision 3(b);therefore subdivision 3(a)shall apply which indicates the original <br /> net tax capacity and the current net tax capacity shall be determined before the application of the <br /> fiscal disparity provisions(see method(a)in Section P). <br /> Section K Estimated Public Costs <br /> The estimated public costs of the TIF District are listed below. Such costs are eligible for reimbursement from tax <br /> increments of the TIF District. <br /> Land/Building acquisition 3,000,000 <br /> Site Improvements/Preparation costs 4,000,000 <br /> Installation of public utilities 2,000,000 <br /> Demolition/Relocation 2,000,000 <br /> Streets and sidewalks 5,000,000 <br /> Public parking facilities 2,OOQ,000 <br /> Total Estimated Public Improvements 18,000;000 <br /> Bond principal payments 18,000,000 <br /> Bond interest payments 19,500,000 <br /> Loan Principal payments 0 <br /> Loan Interest payments 0 <br /> Administrative expenses 4,500,000 <br /> Total $60,000,000 <br /> The City reserves the right to administratively adjust the amount of any of the items listed above or to incorporate <br /> additional eligible items, so long as the total'estimated public cost is not increased. The estimated cost of capitalized <br /> interest is included in the loan interest payment amount. The:City reserves the right to spend available tax increment <br /> outside of the TIF District boundaries and within the project area: <br /> Section L Estimated Sources of Revenue <br /> Tax Increment revenue $44,000,000 <br /> Interest on invested funds <br /> Bond proceeds 15,000,000 <br /> Loan proceeds <br /> Real estate sales. 1,000,000 <br /> Special assessments <br /> Rent/Lease revenue <br /> Grants <br /> Other <br /> Total $60,000,000 <br /> The City anticipates using future tax increments for reimbursement of public costs incurred from Section K. As <br /> increments are collected from the TIF District in future years, a portion of these taxes will be reserved by the City as <br /> reimbursement for public costs incurred (primarily land acquisition), either through internal funding or general <br /> obligation or revenue debt. The City also anticipates providing financial assistance to the proposed development <br /> through the use of a pay-as-you-go technique. As tax increments are collected from the TIF District in future years, a <br /> SPRINGSTED Page 7 <br />