5.1 Public Hearing TIF Plan 2-2 - Laserfiche WebLink

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CITY OF PEQUOT LAKES —TIF DISTRICT NO. 2 -2 Section 18 Use of Tax Increments — General Each year the County Treasurer shall deduct an estimated 0.36% of the annual tax increment generated by the TIF District and pay such amount to the state general fund. Such amounts will be appropriated to the state auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit 3 shows the projected deduction for this purpose over the anticipated life of the TIF District. The Authority has determined that it will use 100% of the remaining tax increment generated by the TIF District for any of the following purposes: 1. Pay for the estimated public costs of the TIF District (including administrative expenses, see Section 7) and City administrative costs associated with the TIF District (see Section 29). 2. Pay principal and interest on tax increment bonds, notes or other financial obligations issued to finance the public costs of the TIF District. 3. Accumulate a reserve securing the payment of tax increment bonds or other bonds issued to finance the public costs of the TIF District. 4. Pay all or a portion of the County road costs as may be required by the County under M.S. Section 469.175, Subdivision 1 a; or 5. Return excess tax increments to the County Auditor for redistribution to the City, County and School District in proportion to their local tax capacity rates. Tax increments from property located in one County must be expended for the direct and primary benefit of a project located within that County, unless both the County and the County to be benefited waive this requirement. Tax increments shall not be used to circumvent levy limitations. Tax increment shall not be used to finance the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, County, School District, or any other local unit of government or the State or federal government, including social, recreational or conference facilities or a public park used as a commons area. Tax increments may be used to finance public parking facilities. Tax increment may not be spent outside the TIF District on improvements, equipment, or other items whose primary purpose is decorative or aesthetic or if the materials used or design cost twice that of more commonly used equipment or improvements. This prohibition does not apply to improvements related to rehabilitating historic structures on national register or in a historic district listed on the national register. If there exists any type of agreement or arrangement providing for the developer, or other beneficiary of assistance, to repay all or a portion of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sales of property at less than the cost of acquisition or fair market value, grants, ground, or other leases at less than fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary. Section 19 "Green Acres" The TIF District may not include parcels that qualified as "green acres" in any of the five (5) years preceding the request for certification, unless 85% of development in the district is restricted to qualified manufacturing or distribution facilities directly related to production of tangible personal property and paying at least 90% of its employees' wages equal to or greater than 160% of the federal minimum wage; or the development in the district is a qualified housing project. According to the County, no parcels have been enrolled in the green acres program. Section 20 4 -Year Knock -Down Rule If after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an adjacent street has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the Original Net Tax Capacity shall be adjusted accordingly. Qualified improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The Authority must submit to the County Auditor, by February 1