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()- <br />TAXINCREMENTFINANCINGHOUSINGDISTRICTNO.18 <br />2.Providethatnomorethan20%ofthesquarefootageofeachbuildingtoreceiveassistance <br />fromtaxincrementsconsistofcommercial,retail,orothernonresidentialuses.Revenue <br />improvementsdirectlyrelatedtothehousingprojectsandtheallocatedadministrative <br />expensesoftheCitymaybeincludedinthecostofahousingproject. <br />3.Failuretocomplywiththeseincomelimitationsissubjecttotheenforcementprovisionsof <br />Section469.1771oftheTIFAct. <br />SECTION3.04PLANFORUSEOFTAXINCREMENT <br />3.04.1EstimatedTaxIncrement <br />TheoriginalnettaxcapacityvalueoftheTIFDistrictwillbesetbytheCountyuponrequestfor <br />capacity)is$5,145.Thisamountisestimatedbasedontheestimatedtaxablemarketvalueofthe <br />eightparcelswithintheTIFDistrict.Thetaxcapacityvalueiscalculatedbasedonresidential <br />ThetotaltaxcapacityvalueofthepropertyaftercompletionoftheProject,fortaxespayable <br />in2022,isestimatedtobe$79,500.Thisamountisbasedonatotalestimatedmarketvalueof <br />betweenthetotaltaxcapacityvalueaftercompletionoftheProjectandtheoriginalnettax <br />capacityvalueisthecapturedtaxcapacityvalue($74,355)forthecreationoftaxincrements. <br />Thetotallocaltaxratefortaxespayablein2019is134.74%.TheTIFPlanassumesthisrateas <br />taxcapacityfortheTIFDistrict,thecountyauditorwillcertifytheoriginallocaltaxratethatwill <br />applytotheTIFDistrict.Theoriginallocaltaxrateisthesumofallthelocaltaxrates,excluding <br />StatutesSection126C.13,thatapplytoapropertyintheTIFDistrict.Thelocaltaxratetobe <br />localtaxrateforthelifeoftheTIFDistrict. <br />Undertheseassumptions,theestimatedannualtaxincrementaftertheProjectiscompleted <br />willbe$100,189fortaxespayablein2022.Theactualtaxincrementwillvaryaccordingtothe <br />theproposeddevelopmentandthechangesinpropertyvalueandStateofMinnesotataxpolicy <br />overthelifeofthedistrict. <br />ItistheintentoftheCitytoretain100%ofthecapturedtaxcapacityvalueforthedurationof <br />theTIFdistrict.ExhibitIIcontainstheprojectedtaxincrementoverthelifeoftheDistrict. <br />3.04.2ProjectCosts <br />TheCitywillusetaxincrementtopayProjectCosts.TheCityanticipatestheuseoftax <br />incrementtopayadministrativeexpensesfortheTIFDistrictandtoreimbursetheDeveloper <br />forreimbursementandthemeansofdisbursingtaxincrementscollectedbytheCitytothe <br />Developer. <br />pursuanttoacontractwiththeDeveloper. <br />TheCityreservestherighttomodifytheTIFPlantoprovideauthoritytoexpendtaxincrement <br />DRAFTFORPUBLICHEARINGOCTOBER9,20197 <br />18 <br /> <br />