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

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Pursuant to M.S., Sectaon 469.17b, Suhd. 7, the District does not contain any parcei or part of a parcel that qualified under the provisians of M. S., Sections 273.111 or 273.112 or Chapter 473H for t�es payable in any oF the five calendar years �efore the filing of the request far certification of the District. Sudsection 2-7. Durafion and First Year of Tax Increment of the District Ptzrsuant to M.S , Section 469.175, Subd. 1, and Sectian 4b9.176, Subd. 1, the duration and first year of ta�c increrr�ent ofthe District must be indicated within the TIF Plan. Pursuant to M. S, Section 469.176, Subd. 1 b., the duration of the District wi11 be 15 yea�rs after receipt of the f rst increment by the City (a toial of 16 years of tax increment). The �ity elects to receive the first tax increment in 2014, whzch is no Iater than four years fallowing the year of appro�al of the District. Thus, i# is estirnated that the District, including any modifications of the TIF Plan for subseq�ent phases or other changes, would teraninate after 2029, or when the TIF Plan is satisfied. The City reserves the right to decertify tk�e Dxstrict pripr to the legally required date. Subsection 2-8. Original Tax Capacity, Tax Rafe and Es#imated Captured Net Tax Capacity Valuellr�crement and Notification of Prior Planned Improverrten#s Pursuaz�t to M. S. , Section 469.174, Subd. 7 and M. S., Section �469.177, Subd. 1, th� Original Net `I'ax Capacity (ONTC} as certified for the District will be based on tk�e market values placed on the property by the assessor in 2010 for taxes payable 2011. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditar shali certify in each year (beginning in the payment year 20I 4) the amount by which the original value has increased or decreased as a resuIt of 1. Change in tax exempt s#atus of pxoperty; 2. Reduction or enlargement of the geographic boundaries af the district; 3. Change due ta adjustments, negotiated or co�ut-ordered abateix�ents; 4. Change in the use of the property and classi�cation; 5. Change in state Iaw governing class rates; or 6. Change in previously issued building permits. In any year in which the current Ne� T� Capacity (NTC) �alue of the District declines below the ONTC, no value wi11 be caphtred and no tax increment will be payable to the City. The original Ioca1 t� rate for the District will be the local tax rate for taaces payable 2011, assuming the request far certiFication is made befare 7une 30, 20I 1. The ONTC and the Original Local Tax Rate for the District appear in tk�e table on the fotlowing page. At the tirne of approval of this TIF 1'lan, the local tax rate fqr taxes payable 2011 is unknown, so the table on the follawing page utilizes the local tax rate for taxes payab�e 2010. Pursuant to M.S., Section 469.174 Subd. 4 and M.S, Sectiora 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Gapacity {CTC} of the District, within De�elopment District No. 1, upon completion of the projects within the District, will annually approximate taa� increment revenues as sk�own in the table below. The City requests 100 percent of the available inerease in tax capacity for repayment of its obligations and current expendituxes, beginning in the tax year payable 2014. The Project Ta�c Capacity (PTC) listed is an estirnate af values when the projects within the District are completed. Cify of Arden HiEls Tax Increment �inancing Pfan forTlF District Na. 4 2-3