7.0. SR 01-27-1997 - Laserfiche WebLink

Home Browse Search

assisted by tax increment will, in the judgment of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or other county plan. The improvements outlined in the Plan serve as notice to tile county that the development of the commercial facility will be assisted with tax increment. In the opinion of the City, the Authority, and consultants, the proposed development will have little or no impact upon county roads. If the county elects to use increments to improve county roads, it must notify the City within thirty days of receipt of this plan. AA. REDUCTION IN STATE TAX INCREMENT FINANCING AID Pursuant to Minnesota Statues, Section 273.1399, for tax increment financing districts for which certification was requested after April 30, 1990, a municipality incurs a reduction in state tax increment financing aid (RISTIFA) applied to the municipality's Local Government Aids (LGA) first and, Homestead and Agricultural Credit Aids (HACA) second, in an amount equal to a formula based upon the equalized qualifying captured tax capacity (QCTC) of the tax increment financing district. Pursuant to Minnesota Statutes, Section 273.1399, Subdivision 6, for tax increment financing districts certified after June 30, 1994, the City may choose an option to the LGA-HACA penalty. A tax increment financing district is exempt if the City elects at the time of approving the tax increment financing plan to make a qualifying local contribution. To qualify for the exemption in each year, the City must make a qualifying local contribution to the project of a certain percentage. The local contribution for a redevelopment district is 5 percent. The maximum local contribution for all districts in the City is limited to two percent of the City's net tax capacity. The amount of the local contribution must be made out of unrestricted money of tile authority or municipality, such as the general fund, a property tax levy, or a federal or a state grand-in-aid which may be spent for general government purposes. The local contribution may not be made, directly or indirectly, with tax increments or developer payments. The local contribution must be used to pay project costs and cannot be used for general government purposes. The Authority elects to make the annual local contribution to the project to exempt itself from the LGA-HACA penalty. AB. ECONOMIC DEVELOPMENT AND JOB CREATION To the extent applicable, the City agrees to comply with Minnesota Statues, Section 116J.991, which states that a business receiving state or local government assistance for economic development or job growth purposes, including tax increment financing, must create a net increase in jobs and meet wage level goals in Minnesota within two years of receiving assistance (See Appendix D). AC. SUMMARY The City of Elk River is establishing Tax Increment Financing District No. 16 to preserve and enhance the tax base, to redevelop substandard areas, and increase employment of the City. The Tax Increment Financing Plan for Tax Increment Financing District No. 16 was prepared by the City of Elk River, 13065 Orono Parkway, Elk River, Minnesota 55330, telephone (612) 441-7420. Tax Increment Financing District No. 16 Page 11-13