2.0. HRSR 03-10-1998 - Laserfiche WebLink

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be made, directly or indirectly, with tax increments or developer pay- ments. The local contribution must be used to pay project costs and can- not be used for general government purposes. 11111 • Timing Constraints The use of tax increment financing in this District is subject to some important timing constraints. The constraints must be carefully moni- tored to insure the maximum effectiveness of this TIF district. Within 3 years from the date of certification (approximately March 2000), the City or the HRA must undertaken activity within the District. The statutory criteria of activity includes issuance of bonds in aid of a project, acquisition of property, or the construction of public improve- ments. Without qualifying activity, no tax increment can be collected from the District. Within 4 years from the date of certification (approximately March 2001), the City/HRA or property owners must take qualifying actions to improve parcels within the District. All parcels not meeting this statuto- ry criteria must be removed ("knocked down") from the District. Upon future improvement, any parcel so removed may be returned to the District. After 5 years from the date of certification (approximately March 2002), the use of tax increment is subject to new restrictions. Generally, tax increment can be used only to satisfy existing debt and contractual • obligations. The geographic area of the District can be reduced, but not enlarged, after 5 years from the date of certification (approximately March 2002). Other TIF Districts The primary vehicle for TIF will be District 1-22. Other TIF districts located in the Central Monticello Redevelopment Project (Area) No. 1 may offer the capacity to provide financial support. The use of tax increment revenues from other Districts requires consideration of several questions: • Will tax increment revenues be available after accounting for existing obligations and changes in tax class rates? • Will increments be needed to address needs within the District? • What statutory limits on pooling apply to the District? • Are TIF Plan amendments needed? • What other constraints apply to increment from this District? These questions can best be answered in evaluating funding options for specif- ic Downtown projects. Tax Abatement In 1997, the State Legislature gave local governments the ability to abate prop- • 01, erty taxes. Minnesota Statutes, Sections 469.1812 through 469.1815 describes • "_ A New Bridge '1 Revitalizing Monticello's Downtown and Rlverfront Page 4:14