Correspondence 1989-1992 Waldron

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� 1._.J � H. I. J. 3. Bond discount, cap interest, legal fees, etc�, cost of issuance Estimated Amount of Loan/Bonded Indebtedness $ 5,000,000 Tax Increments collected as a result of Tax Increment Financing District No. 11 will be u�ilized on a"pay as you go" basis to assist with capital and administration costs in Development District No. 1 for the Twin Lake� area. Tax increments in excess of the amount necessary to finance the amounts set farth in Section G will be used to pay principal and interest on the City's outstanding tax increment bonds or will be used to pay other capital and administration costs within Development District No. 1. The City reserves the right to issue bonds not to exceed $50,000,000 should it become necessary. Sources of Revenue The only source of r�venue to be used to finance ca�ital and administration costs �ssocia�ed with °the ci�velapmer�t projects set forth in this Tax Increment Financing District No. 11 within Development District No. 1, is tax increanen� generated as a result of the taxat.ion of l�nd and improve�nents within Development Distri�t Y�o� 1. Tax increment financing refers to a funding t�chr�igue that utilizes increases in �valuation and the prop�rty tax�s attributable to new dev�lopment to finance, or assist in the f inancing of capital and administ�ation �costs. The improvements as a result of future dev�lopment are exp�c��d to generate an annual tax increment of $3,351,On0 based upc�n assumptions of a total build out value of ��.15,657,500. Original Net Tax Capacity Pursuant to Minnesota Statu�es, Section 469.12�, Subciivissan 1 and Section 469.177 Subdivision 1, the Original Net '�ax Capacity for tne City of Roseville Tax �ncr�ment Financing District No. 11 is based on the value plac�d on t�e propert� by the County Assessor in 1990. This Original Net Tax Capacity is $35,741,500. Each year the 0�£fice of the County Auditor will measure the amount of increase or decrease in the total value of Tax zncrement F'inar�cing District No. i.l to calculate the tax increment payable ta Tax Incremen� Financing Distric� No. 11. In any year in which there is ari increase in total Net Tax Capacity, above �the Original Net Tax Capacity, a tax increment will be �ayable. The County Auditor shall certify in each year after the dat� the Original Net Tax Capacity was certified, the amount of Net Tax Capacity has increased or decreased as a zesult of: 1. change in tax exempt status of propert�;