6.0. EDSR 08-14-2000 - Laserfiche WebLink

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• 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 an economic development district is 10 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 the City, 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 City elects to make the annual local contribution to the project to exempt itself from the LGA- HACA penalty. The City will pay for costs of the project described in this Plan, or other eligible costs of the development program, in an amount equal to 10 percent of annual tax increment for District No. 21, subject to the limitations described above, in any year in which such amount does not exceed 2 percent of the City's net tax capacity. Such contribution may be in the form of either lump sum or annual payments (in addition to tax increment payments) toward costs identified in this plan or other costs related to that development or redevelopment. The contribution may also be made in the form of public improvements financed by the City or other unit of government with unrestricted funds. • AC. SUMMARY The City of Elk River is establishing Tax Increment Financing District No. 21 to preserve and enhance the tax base, to develop underutilized areas, and increase employment of the City. The Tax Increment Financing Plan for Tax Increment Financing District No. 21 was prepared by the City of Elk River, 13065 Orono Parkway, Elk River, Minnesota 55330, and telephone (763) 441-7420. • Tax Increment Financing District No.21 Page 11-13