6B, Public Hearing Proposed TIF District Resolution 2010-081, -082 & -083

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Subsection 2-10. Uses of Funds Currently under consideration far the District is a proposa! ta facilitate the development of 166 s�nior units and 36 senior rental brownstones. T�e City has determined that it will be nec�ssary to provide assistance to the project(s) for certazn District costs, as described. The City has st�died the feasibility ofthe deveiopmen� or redevelopnr►ent of property in and around the District. To facilitate the establishment and developrnent or redevelopment of #he District, this TIF Plan authorizes the use of tax increment �inancing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of fi.tnds associated wi#h tiie District is ou#lined in the following table. USES OF TAX INCREMENT �UNDS LandlBuilding Acquisition Site Improvements/Preparation Public Utitities Streets and Sidewalks Administrative Costs (up to 10%� PROJECT COST TOTA�, Interest PROJECT AND INTEREST COSTS TOTAL TOTAL $104,000 $1,800,000 $400,000 $ i 77,289 367 801 $2,845,090 932 922 $3,778,012 For purpases af OSA reporting forms, uses of funds include interfund Ioaris, bond principal, TIP Note principal, and transfers, all in the pzincipal amount of up to $2,845,090. These amounts are not cumu�ati�e, but represent the various forms of "bonds" included within the concept of bonded indebtedness under the �IF Aci. The total project cost, including financing costs {interest) listed in the table above does not exceed the total projected tax increments for the District as shown in Subsectian 2-9. Estimated costs associated with the District are subject to change among categories without a rnodificatian to this TIF �lan. The cost of all activities to be conszdered for tax increment financing wili not exceed, without formal tn.odification, the budget above p�rsuant to the applicable staiutory requirements. Pursuant to M.S., Section 469.1763, Subd 2, no more t�an 20 percent ofthe tax increznent paid by property within the District wiIl be spent on activities related to development or recfevelopment outside of the District but wi#hin the boundaries af Development District No. 1, (incl�ding administrative costs, which are considered to be spent outside of the District) subject to the litnitations as described in this TIF Plan. Subsection 2-99. Fiscal Dispari#ies Election Pursuant to M.S., Sectian 469.177, Subd. 3, the City may elect one of two methods to caIculate �scal disparities. If the calculations pursuant to M. S., �Sectian 469.177, Subd. 3, clause a, (outside the District) are followed, the following methad of compu�ation shall apply: (1) The oraginal net tax capacaty and the current net ta�c capaciry shadl be determzned before the application of the fiscal dispariry provisaons of Chapter 276A or 473F. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured net tax capactty and na tax increment deterrrtinatiort. Where the original net tax capacity ts less than Cify of Arden Hills Tax Increment Financing Plan for TIF Districf No, a 2-5