EDSR MEMORANDUM 11-15-1993 - Laserfiche WebLink

Home Browse Search

in 1996 and will run up to and including the year 2006 . This cash flow is outlined in greater detail in Exhibit D. To help you understand this illustration, please refer Sto the column with the year "1996" . Because the property is tax-exempt, there is no original net tax capacity so it is marked $0 . The total net tax capacity of $27, 150 is achieved by taking the finished market value of the commercial project (that is $625,000) and applying the Assessor' s commercial formula. Because of the tax exempt status of the land, the $27 , 150 also becomes the "captured net tax capacity" . This figure is multiplied by the tax rate of 103 .025 to achieve an estimated captured tax increment of $27, 971 . The additional heading marked "cumulative increment" represents the amount of tax increments collected in subsequent years . Please note that in the year 2006, the cumulative increment is $307,681 . This total is sufficient to retire a $195, 000 "note" with an interest rate of, say, 7 . 5% . Below are the following elements that will affect the collection of tax increments : - Assessor' s commercial formula, - Finished market value, - Tax rate. The TIF Plan for TIF District No. 12 is included in the agenda packet. • Action Requested After conducting the public hearing on TIF Plan for TIF District No. 12, the EDA is asked to adopt Resolution 93-5, which is found in the agenda packet. 3 . Public Hearing on EDA Land Sale State law requires that an Economic Development Authority conduct a public hearing on the proposed sale of property owned by an EDA. The November 15th public hearing relates to the proposed sale of the EDA Main Street Redevelopment Site to Kurt Kjellberg/Kjellberg' s Carpet and Interiors . This public hearing was authorized at the October 11th EDA meeting. Conveyance of the land, however, is subject to: City Council approval of the TIF Plan for TIF District No. 12; - Execution of a Contract for Private Development by and between the EDA and Kurt Kjellberg/Kjellberg' s Carpet and Interiors; - Execution by Kjellberg of an Assessment Agreement which establishes the minimum market value for tax purposes on the land and the building.