EDSR MEMORANDUM 11-15-1993 - Laserfiche WebLink

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• 2 . Bonded Indebtedness The Elk River Economic Development Authority is proposing to privately place a tax increment note through a lending institution to finance the costs associated with Tax Increment Financing District No. 12 . 3 . Sources of Revenue to Pay Public Costs Tax Increments collected from the Kjellberg retail facility will be used to pay the public costs associated with Tax Increment Financing District No. 12 . 4 . Original Tax Capacity The original net tax capacity, based on the January 2, 1992, valuation, for the real property in Tax Increment District No. 12 is estimated to be $0 . 00 . The County Auditor Certification attributable to this value is attached as Exhibit C. 5 . Estimated Captured Tax Capacity 411 The finished market value upon completion of the improvements in Tax Increment Financing District No. 12 is estimated at $625,000 . This value translates into a completed net tax capacity estimated at $27 , 150 . The captured net tax capacity is estimated as follows : Completed Net Tax Capacity $27, 150 Less Original Net Tax Capacity -0- Equals Captured Net Tax Capacity $27 , 150 One hundred percent of the captured net tax capacity of Tax Increment Financing District No. 12 will be required to finance the public redevelopment costs associated with District No. 12 . As a result, the City of Elk River elects, pursuant to Minnesota Statute 469 . 177 Subdivision 2 (a) ( 1) , to retain the full captured net tax capacity of Tax Increment Financing District No. 12 . 6 . Duration of the Tax Increment Financing District No. 12 The City of Elk River expects that the first increment it will receive from Tax Increment Financing District No. 12 will be for taxes payable in 1996, and will be based on a completed value as of January 2, 1995 . The City expects to continue to