5.1. HRSR 09-07-2004 - Laserfiche WebLink

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TIF District Overview 3 Year Activity Rule At least one of the following activities must take place in the District within 3 0469.176 Subd la) years from the date of certification: bonds have been issued the authority has acquired property within the district the authority has constructed or caused to be constructed public improvements within the district The estimated date whereby this activity must take place is September 2007. 4 Year Activity Rule After four years from the date of certification of the District one of the (§469.176 Subd 6) following activities must have been commenced on each parcel in the District: demolition rehabilitation renovation other site preparation (not including utility services such as sewer and water) If the activity has not been started by the approximately September 2008, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity 5 Year Rule Within 5 years of certification revenues derived from tax increments must be (§469.1763 Subd 3) expended or obligated to be expended. Tax increments are considered to have been expended on an activity within the District if one of the following occurs: the revenues are actually paid to a third party with respect to the activity bonds, the proceeds of which must be used to finance the activity, are • issued and sold to a third party,the revenues are spent to repay the bonds, and the proceeds of the bonds either are reasonably expected to be spent before the end of the later of(i)the five year period, or(ii) a reasonable temporary period within the meaning of the use of that term under §. 148(c)(1)of the Internal Revenue Code, or are deposited in a reasonably required reserve or replacement fund binding contracts with a third party are entered into for performance of the activity and the revenues are spent under the contractual obligation costs with respect to the activity are paid and the revenues are spent to reimburse a pay for payment of the costs, including interest on pY pY � g unreimbursed costs. Any obligations in the Tax Increment District made after approximately September 2009,will not be eligible for repayment from tax increments. The previous summary contains an overview of the basic elements of the proposed Tax Increment Financing Plan for Downtown Phase I Tax Increment Financing District No.22. More detailed information on each of these topics can be found in the complete TIF Plan. Page 2