5.1. PCSR 08-24-2004 - Laserfiche WebLink

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SOURCES OF FUNDS TOTAL Tax Increment $7,350,000 PROJECT REVENUES $7,350,000 Subsection 2-10. Uses of Funds Currently under consideration for the District is a proposal to facilitate the redevelopment of the area,which includes a four story building with approximately 10,000 square feet of commercial space and 52 for-sale residential units and a three story building with approximately 10,000 square feet of commercial space and 32 rental housing units. The City has determined that it will be necessary to provide assistance to the project for certain costs. The City has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District,this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. USES OF FUNDS TOTAL Land/Building Acquisition- Demolition and Relocation $2,590,000 Public Utilities(pooling, amount to Sac Wac) $535,000 Interest $3,975,000 Administrative Costs (up to 5%) $250,000 PROJECT COSTS TOTAL $7,350,000 The above budget is organized according to the Office of State Auditor(OSA)reporting forms. It is estimated that the cost of improvements, including administrative expenses which will be paid or financed with tax increments, will equal $7,350,000 as is presented in the budget above. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification,the budget above pursuant to the applicable statutory requirements. Pursuant to M.S., Section 469.1763, Subd. 2,no more than 25 percent of the tax increment paid by property within the District will be spent on activities related to development or redevelopment outside of the District but within the boundaries of Development District No. 1, (including administrative costs, which are considered to be spent outside of the District)subject to the limitations as described in this TIF Plan. Subsection 2-11. Business Subsidies Pursuant to M.S. Sections 116.1.993, Subd. 3,the following forms of financial assistance are not considered a business subsidy: (1) A business subsidy of less than $25,000; (2) Assistance that is generally available to all businesses or to a general class of similar businesses,such as a line of business, size, location, or similar general criteria; (3) Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; City of Elk River Tax Increment Financing Plan for Downtown Phase I Tax Increment Financing District No.22 2-6