2013-01-02 CC Packet - Laserfiche WebLink

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TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 1 -7 3.03.3 Type of District The TIF District is established as an "economic development" district pursuant to Minnesota Statutes Sections 469.174, Subd. 12 and 469.176, Subd. 4c. These sections of the TIF Act allow tax increments from an economic development district may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities, if certain conditions are met. The City finds the proposed development to be in the public interest because: (1) it will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality; and (2) it will result in increased employment in the state; and (3) it will result in preservation and enhancement of the tax base of the state. SECTION 3.04 PLAN FOR USE OF TAX INCREMENT 3.04.1 Estimated Tax Increment The Original Tax Capacity of value of the TIF District will be set by the County upon request for certification. The Original Tax Capacity value may change over time based on the use and tax classification of each parcel. For the purposes of this Plan, the estimated Original Tax Capacity is $3,036. This amount is based on the most recent published Estimated Market Value of the property of $202,400 with tax capacity value calculated for commercial- industrial property. The Total Tax Capacity value of the property after completion of planned development is estimated to be $26,250. This amount is based on a Total Estimated Market Value of $1,400,000 with property classified as commercial - industrial. The difference between the Total Tax Capacity value and the Original Tax Capacity value is the Captured Tax Capacity value for the creation of tax increment. It is the City's intent to retain 100% of the Captured Tax Capacity of value for the life of the TIF district. The total Local Tax Rate for taxes payable in 2012 is 156.326 %. The estimates included in the TIF Plan are based on the Local Tax Rate for taxes payable in 2012. The Local Tax Rate for taxes payable in 2013 has not been certified and was not available for use in the development of the TIF Plan. The certified Original Tax Rate will be set by the County based on the Local Tax Rates for taxes payable in 2013. Under the assumptions for the TIF Plan, the estimated annual tax increment upon completion of all phases of development will be $21,183. The actual tax increment will vary according to the certified Original Tax Capacity value and Original Tax Rate, the actual property value produced by the proposed development and the changes in property value and State tax policy over the life of the district. Exhibit II to the TIF Plan contains the projected tax increment over the life of the District. 3.04.2 Fiscal Disparities Election Fiscal disparity contributions attributable to the TIF District will be made from property inside the boundaries of the TIF District as described in Minnesota Statutes 469.177, Subd. 3. 3.04.3 Development Costs The City will use tax increment to reimburse the Developer for land acquisition and site improvement costs related to redevelopment of property and to reimburse the City for land acquisition and site improvement costs. ADOPTED (J -112)