5.1 Public Hearing TIF Plan 2-2 - Laserfiche WebLink

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CITY OF PEQUOT LAKES —TIF DISTRICT NO. 2 -2 Section 30 Financial Reporting and Disclosure Requirements The Authority is responsible for information and financial reporting on the activities of the TIF District. These responsibilities include: 1. Prepare and Publish an Annual Statement. No later than August 1 of each year, the Authority must prepare and publish an annual statement which includes at least the following information: a. tax increment received and expended in that year. b. Original Net Tax Capacity c. captured Net Tax Capacity d. amount of outstanding bonded indebtedness e. increments paid to other government bodies. f. administrative costs g. increments paid directly or indirectly outside of the district. h. if a fiscal disparities contribution is computed under section 469.177, Subd. 3(a), the increase in property tax imposed on other properties in the municipality as a result of the fiscal disparities contribution in the manner prescribed by the commissioner of revenue. A copy of the annual statement must also be provided to the State Auditor, county board and county auditor, and the municipality. 2. Prepare an Annual Report. (469.175 Subds. 5 and 6) The State Auditor enforces the provisions of the TIF Act and has full responsibility for financial and compliance auditing of the Authority's use of tax increment financing. The State Auditor's office provides detailed tax increment reporting forms for use in complying with annual reporting requirements. On or before August 1 of each year, the Authority and /or the City must prepare a status and financial report for the TIF District and submit it to the state auditor, the county board, the county auditor, and the governing body of the municipality, if the municipality is not also the authority. 3. Prepare a Minnesota Business Assistance Form. (116J.994) By April 1, the Authority must submit a report to the Department of Employment and Economic Development on wage and job goals and progress made in achieving them. A reporting form is provided by the Department and must be submitted for each business which has received TIF assistance. Section 31 Findings and Need for Tax Increment Financing In establishing the TIF District, the City makes the following findings: 1. The TIF District qualifies as an economic development district; See Sections 12 and 17 of this document for the reasons and facts supporting this finding. 2. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future, and the increased market value of the site that could reasonably be expected to occur without the use of tax increment would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan; The above finding is based on a request to the City submitted by the Developer stating the subsidy is needed from the City and without the use of tax increment financing the Project could not proceed. The City also finds that due to the amount of time the site(s) have sat in their current condition, the City finds no reason for additional development to occur without TIF assistance. Therefore, the City reasonably believes that the expected increase in market value at this site without TiF assistance would be minimal. A comparative analysis of estimated market values both with and without establishment of the TiF District and the use of tax increments has been performed. This property 12