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05.02 - Tax Increment Financing Project - Lonesome Cottage
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08-07-2007 Council Meeting
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05.02 - Tax Increment Financing Project - Lonesome Cottage
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Authorized uses: The TIF Plan contains a budget that authorizes the maximum amount that <br /> may be expended: <br /> Land Acquisition by Developer.............................................$102,600 <br /> Land Write Down by City.......................................................$64,900 <br /> LoanInterest............................................................................$54,500 <br /> Administrative Costs(up to 10%)...........................................$23,000 <br /> PROJECT COSTS TOTAL............................................... <br /> See Subsection 2-10, pages 2-5 and 2-6 of the TIF Plan for the full budget <br /> authorization. Additional uses of funds are authorized which include <br /> interfund loans,transfers and bonded indebtedness. <br /> Form of financing: The project is proposed to be financed by a pay-as-you-go-note and an <br /> interfund loan. <br /> Administrative fee: Up to 10%of annual increment, if costs are justified. <br /> Interfund Loan If the City wants to pay for administrative expenditures from a tax increment <br /> Requirement: fund, it is recommended that a resolution authorizing a loan from another <br /> fund be passed PRIOR to the issuance of the check. <br /> The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as required <br /> pursuant to M.S., Section 469.175, Subd. 3, are included in Exhibit A of the City resolution. <br /> Page 2 <br /> EAHLERS <br />
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