Correspondence 1989-1992 Waldron

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� � 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 utilized on a, pay as you go'� basis to assist with capital and administration costs in Development District No. 1 for the Twin Lakes area. Tax increments in excess of the amount necessary t� finance the amounts set forth 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 af revenue to be used to finance capital and administration costs associated with the development prajects set forth in �his Tax Increment Financing District No. 11 within Development District No. 1, is tax i�crement gene rated as a result of the taxation of land and improvements within Development District No. 1. Tax increment financing refers to a funding technique that utilbzes increases in valua�ion and the property taxes attributab�� to new developmerit to finance or assist in the f ina�cing of capital and administration costs. The improvements as a result of future development are expected to generate an annual tax increment of $3,35�,000 based upon assumptions of a total build out value of $115,657,500. 4rig�nal Net Tax Capacity Pursuant �o Minnesota S�:atute�, Section 469.175, Subdivision 1 and Section 469.177 �ubdivision 1, the Original Net max Capacity for ghe City o� Roseville Tax increment Financing District No. 11 is based on the value placed on the property by the County As�essor in 1990. This Orfginal Net Tax Capa�ity is $35,741,500. Each year the Office of the County Audit�r wi11 measure the amount o� increase or decrease in the tatal value of Tax Increment Financing District No. I1 to calculate the tax increment payable to Tax Increment Financing District No. �1. In any year in which there is an iricrease in total Net Tax Capacity, above the Original Net Tax Capaczty, a tax increment will be payable. The County Audi�or shal� certify in each year after the date the Original Net Tax,Capacity was certified, the amount of Ne� Tax Capacity has increased or decreased as a result of: � 1, change in tax exempt status of property;