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

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the current net tc� capacity, the difference bettiveen the original net tax capaciry and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, ta share with the lacal taxing disiricts is the retained captured net tax capacity of the authoriry. (2} The counry auditor shall exclude the retained captured net ta,r capacity of the authoriry from the net tax capacity of ihe local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capaciry of the authoriry as well as the net tax capacity of the local taxing districts. 7'he tax generated by the extension of the Iesser of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capaciry of the authoriry is the tax increment of the authority. The City will choose io calculate �scal disparities by c[ause b. It is not anticipated that the District will contain commerciallincfustrial property. As a result, there shouId be no impact due ta ti�e �scal disparities provision on the District. According to M.S., Section 469177, Subd. 3: (c) The method of computatzon of tax inerement applied to a district pursuant to paragraph (a) or (b) shall remain the sa»ae for the duration of the district, except that the governing body may elect to change its election from the method of computataon in paragraph (a) to the method in paragraph (b). Subsection 2-12. Business Subsidies Pursuant ta M.S., Section 116J. 993, Subd. 3, the following forms of financial assistance are not considered a business s�bsidy: (I) A business subsidy of less than $150,000; (2) Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; (3} Public improvements to buildings or lands owned by the state or Iocal government Lhat serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) Aedevelopment property poIluted by contamznants as defined in M.S., Section 116J. 552, Subd. 3; (5) Assistance pro�ided for the sole purpase of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preser�ation districts, provided that the assistance is equal to or less than 50% of the totaI cost; (6) Assistance fo provide job readiness and training seirvices if the sole purpose of the assistance is to provide those services; {7) Assistance for housing; (S) Assistance for poIIution control oz- abaternent, including assistance for a t� increment financing hazardous substance subdistrict as defined under M.S., Sectzan 469.174, Subd. 23; (9) Assistance for enargy conservation; (10) Tax reductions resulting fram conformity with federal tax law; {11) Workers' compensation a�d unemployment compensation; {12) Benefits derived from regulation; (13) Indirect benefits derived from assistance to educational institutions; {14) Funds frorn bonds allocated under chapter 47�FA, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 {c} {3) of the Internal Re�enue Code of 1986, as a�nended through Decernber 31, 1499; City of Arden Hiils Tax Increment Financing Plan forTlF pistrict Na. 4 2-6