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EDA Agenda Memo <br /> December 3, 1997 <br /> Page 6 <br /> fibcity's economic development fund approximately $20,000 (10 percent of <br /> the tax increment received). This local contribution is required to be <br /> made from funds other than tax increment funds. The local <br /> contribution will be made in the following manner: <br /> • In December of each year, a tax increment settlement is <br /> received for District No. 17 from Sherburne County <br /> • A calculation will be made to determine 10 percent of this tax <br /> increment settlement <br /> • An annual transfer will occur(in the amount of 10 percent of <br /> the tax increment settlement) from the development fund to <br /> the Tax Increment District No. 17 fund <br /> • <br /> Essentially this means there will be a larger pot of money in <br /> the TIF District No. 17 fund with which to use topay the <br /> developer the approved amount of assistance <br /> • In most cases this means the developer will receive the <br /> approved amount of tax increment assistance over a shorter <br /> time period than initially projected <br /> • Staff projected a pay-as-you-go pay back over a six year time <br /> period, but due to the city's local contribution, this time <br /> period may be shortened to five years. <br /> 111 As allowed byState Statute, 10 percent of the annual increment <br /> settlement received for this District will be transferred from the TIF <br /> District No. 17 fund into the development fund for administrative <br /> purposes. <br /> As indicated in the financial analysis attached to the Plan, this <br /> District will generate approximately $36,000 per year in.increment. <br /> As stated earlier, staff projects a payoff of the $160,000 request in the <br /> following manner: <br /> • Beginning in the first full tax year (2000) and ending at the <br /> end of the year 2005 for a total of six years of increment. <br /> Prior to final approval of TIF District No. 17 by the City Council, staff <br /> will have negotiated a Development Agreement which will provide for <br /> the following: <br /> • Outline the timing of payments to developer <br /> • Developer to agree to lease space to businesses which are <br /> identified as being eligible recipients of tax increment as <br /> ipidentified in Minnesota Statutes <br />