6.1. SR 11-01-2004 - Laserfiche WebLink

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SOURCES OF FUNDS TOTAL $8,178,400 $8,178,400 Tax Increment PROJECT REVENUES Subsection 2-10. Uses of Funds Currently under consideration for the District is a proposal to facilitate the redevelopment of the area, which includes a four story building with approximately 10,000 square feet of commercial space and 60 for-sale residential units and a three story building with approximately 10,000 square feet of commercial space and 32 rental housing units. The City has determined that it will be necessary to provide assistance to the project for certain costs. The City has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TlF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. USES OF FUNDS TOTAL $2,590,000 $350,000 $340,000 $4,648,400 $250,000 $8,178,400 Land/Building Acquisition - Demolition and Relocation Parking Facilities (pooling) Public Utilities (amount to Sac Wac) Interest Administrative Costs (up to 5%) PROJECT COSTS TOTAL The above budget is organized according to the Office of State Auditor (OSA) reporting forms. It is estimated that the cost of improvements, including administrative expenses which will be paid or financed with tax increments, will equal $8,178,400 as is presented in the budget above. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant to MS.. Section 469.1763, Subd. 2, no more than 25 percent of the tax increment paid by property within the District will be spent on activities related to development or redevelopment outside ofthe District but within the boundaries of DeveJopment District No.1, (including administrative costs, which are considered to be spent outside of the District) subject to the limitations as described in this TlF Plan. Subsection 2-11. Business Subsidies Pursuant to MS. Sections 116J993, Subd. 3, the following forms of financial assistance are not considered a business subsidy: (1) A business subsidy of less than $25,000; (2) Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; (3) Public improvements to buildings or lands owned by the state or local government that serve a public City of Elk River Tax Increment Financing Plan for Downtown Phase I Tax Increment Financing District No. 22 2-6