5.1 Public Hearing TIF Plan 2-2 - Laserfiche WebLink

Home Browse Search

CITY OF PEQUOT LAKES —TIF DISTRICT NO. 2 -2 of the fifth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the Authority or owner of the parcel subsequently commences any of the above activities, the Authority shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the Original Net Tax Capacity of the TIF District. Section 21 Tax Increment Pooling — 5 -year Rule At least 80% of the tax increments from the TIF District must be expended on activities within the district or to pay for bonds used to finance the estimated public costs of the TIF District. No more than 20% of the tax increments may be spent on costs outside of the TIF District, but within the boundaries of the Project Area. All administrative expenses are considered to have been spent outside of the TIF District. Tax increments are considered to have been spent within the TIF District if such amounts are: 1. actually paid to a third party for activities performed within the TIF District within five years after certification of the district; 2. used to make payments or reimbursements to a third party under binding contracts for activities performed within the TIF District, which were entered into within five years after certification of the district; or 3. used to pay bonds that were issued and sold to a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the five -year period or a reasonable temporary period or are deposited in a reasonably required reserve or replacement fund - Beginning with the sixth year following certification of the TIF District, at least 80% of the tax increments must be used to pay outstanding bonds or make contractual payments obligated within the first five years. When outstanding bonds have been defeased and sufficient money has been set aside to pay for such contractual obligations, the TIF District must be decertified. Section 22 Excess Tax Increment On December 31st of each year, the Authority must determine the amount of excess increments for the TIF District. Excess increments may only be used to: 1. prepay any outstanding tax increment Bonds; 2. discharge the pledge of tax increments on any outstanding Bonds; 3. pay amounts into an escrow account dedicated to the payment of any outstanding Bonds; or 4. 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. The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution. Section 23 Limitation on Administrative Expenses Administrative expenses are defined as all costs of the Authority other than: 1. amounts paid for the purchase of land; 2. amounts paid for materials and services, including architectural and engineering services directly connected with the proposed development within the TIF District; 3. relocation benefits paid to, or services provided for, persons or businesses located within the TIF District; or 4. amounts used to pay interest on, fund a reserve for, or sell at a discount, tax increment bonds. Administrative expenses include amounts paid for services provided by bond counsel, fiscal consultants, planning or economic development consultants, and actual costs incurred by the City in administering the TIF District. Tax increments may be used to pay administrative expenses of the TIF District up to the lessor of (a) 10% of the total estimated public costs authorized by the TIF Plan or (b) 10% of the total tax increment expenditures of the project. 0