2007.03.19 EDA Packet - Laserfiche WebLink

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City of Hugo, Minnesota portion of these taxes will be distributed to the developer/owner as reimbursement for public costs incurred that relate to redevelopment of the project site. The City reserves the right to finance any or all public costs of the TIF District using pay-as-you-go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The City also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to,special assessments, utility revenues,federal or state funds, and investment income. Section M Estimated Amount of Bonded Indebtedness The City may issue tax increment bonds to finance all or a portion of the estimated public costs of the TIF District in an amount not to exceed$18,000,000. Section N Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31,inclusive,this value is teased on the current assessment year. Some parcels within the boundaries of the district,contained buildings that were demolished (see Exhibit VII for additional detail). The greater of the current net tax capacity or the estimated market value of the parcel for the year in which the buildings were removed, applying class rates for the current year must be used to calculate the original net tax capacity. Therefore, upon establishment of the TIFDistrict,and subsequent reclassification of property, it is estimated that the market value of all property within the proposed TIF district boundaries as of January 2, 2006, for taxes payable in 2007, or in the year the buildings were.removed, will`be $27,740,300 and the original net tax capacity of the TIF Distract will be approximately$427,74:1 Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax-exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements;or (4) changes in property classification rates. Section 0 Original Local Tax Rate The County Auditor shall also certify the original local tax rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years,the amount of tax increment generated by the TIF District will be calculated using the lesser of(a)the sum of the current local tax rates at that time or(b)the original local tax rate of the TIF District. At the time this document was prepared, the sum of the final local tax rates that apply to property in the TIF District, for taxes levied in 2006 and payable in 2007, was not yet available. When this total becomes available, the County Auditor shall certify this amount as the original tax capacity rate of the TIF District. For purposes of estimating the tax SPRINGSTED Page 8