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

Home Browse Search

Suhsectian 2-25. Annual Disclosure Requir�ments Pursuant to M. S„ Section 469.175, Subds. 5, 6, and 6b the City must undertake iinancial reporting far aIl ta�c increment financing districts to the Office of the Sta�e Auditar, County Board and County Audi#ar on or before August 1 of each year. M.S., Section 4b9.175, Subd. S also provides that an annual statement sha[1 be published in a newspaper of general circulation in the City on ar before August 15. If the City fails to maice a disclosure or submit a report containing the information required by M.S., �'ection 4b9.175 �ubd. 5 and Subd. G, the OSA will direct the County Auditor to withhold the distribution of ta� increment from the District. Subsection 2-26. Reasonable Expectations As required by the TIF Act, in establishing the District, the detezmination has been rnade that the anticipated de�elopmer�t would not reasonably be expected to occur solely through private investment within the reasonably fareseeable future and that the increased market value ofthe si#e that could reasonabIy be expected to occur without the use of tax increment financing would be less tk�an the inerease in the market �alue estimated to result from the proposed development after subtracting the present value of the projected tax increments for the m�imum duration of #he District permitted by the TIF Plan. In making said determination, reliance has been placed upon written representations made by the de�eloper to such effects and �pon Ci#y staff awareness of the feasibility of developing the project site(s) within the District. A eamparative analysis of estimated �narket values both with and wiihout establishrnent of the District and the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D, and indicates that the increase in estimated ma�rket �aIue af the proposed development (less the indicated subtractions} exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. Subsection 2-27. Other Limitations on �he Use of Tax Encrement General Limitations. All revenue derived from tax inerement shaIl be used in accordance with the TIF Plan. The revenues shall be used io finance, or otherwise pay the capital and administration costs of De�elopment District No. 1 p�rsuant to M.S., Sections 469.124 to 489.134. Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, cons#ructian, renovation, aperation, or maintenance of a building to be used primariIy and reguIarly for conducting the business af a municipality, county, school district, or any other local unit of government or the state or federal go�ernment. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking strueture. 2. Poolin� Limitations. At least 80 percent of tax increments from the District must be expended on activities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to fnance activities withirz said disirict or to pay, or secure payment of, debt ser�ice on cz-edit enl�anced bonds. Not more than 20 percent of said tax increments may be expended, thraugh a development fund or otherwise, on activities outside of �he Dis�ict except to pay, or secure payment of, debt service on credit enhanced bonds. Far pur�aoses of applying this restrictian, all administrative expenses must he treated as if they were solely for activities outside of the District. 3. Five Year Linnitation on Cor�tmitment of Taa� Increments. Tax increments deri�ed frorn the District shall be deemed to have satisfied the 80 percent test set forth in paragraph {2) abave only if the f�e year ruIe set forth in M.S., Section 469.1763, Subd. 3, k►as been satisfied; and beginning with the sixth year followzng certiizcation of the District, 80 percent of said tax increments that remain after expenditures pertnitted under said five year rule must he used only to pay previously committed expenditures or credit City of Arden FEills Tax Increment Financing Pian forTlF District No. 4 2-t3