05.02 - Tax Increment Financing Project - Lonesome Cottage

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EHLERS LEADERS IN PUBLIC FINANCE Tax Increment Financing District Overview City of Pequot Lakes Tax Increment Financing District No. 1-13 The following summary contains an overview of the basic elements of the Tax Increment Financing Plan for Tax Increment Financing District No. 1-13. More detailed information on each of these topics can be found in the complete TIF Plan. Proposed action: ➢ Establishment of Tax Increment Financing District No. 1-13 (District) and the adoption of a Tax Increment Financing Plan.(TIF Plan). Modification to the Development Program for Development District No. 1 includes: The Development District budget is being modified to equal all the budgets of all past and future tax increment financing plans. . The boundaries of Development District No. 1 are being expanded to include any property previously annexed into the City. The boundaries of Development District-No. 1 shall be coterminous-with the corporate boundaries of the City of Pequot Lakes. The establishment of Tax Increment Financing District No. 1-13, which represents a continuation of the goals and objectives set forth in the Development Program for Development District No. 1. Modify Business Subsidy Policy and Criteria. Award a business subsidy to Lonesome Cottage Furniture Company. Type of TIF District: An economic development district Parcel Numbers: 291130020020009 291130020030009 291130020040009 291130020050009 Proposed The District is being created to facilitate construction of 24,000 square foot Development: manufacturing facility for Lonesome Cottage Furniture Company in the City. Please see Appendix A for further project information. Maximum duration: The duration of the District will be 8 years from the date of receipt of the first increment (9 years of increment). The date of receipt of the first tax increment is expected to be 2009. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes,would terminate after 2017,or when the TIF Plan is satisfied Estimated annual tax Up to$29,199 increment:* *The estimates used include a 3.5% annual inflation factor. The inflation may or may not occur.