7.1. SR 07-03-2017 - Laserfiche WebLink

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City of Elk River, Minnesota SPRINGSTED Page 7 Section K Estimated Public Costs The estimated public costs of the TIF District are listed below. Such costs are eligible for reimbursement from tax increments of the TIF District. Land/Building acquisition 500,000 Site improvement/preparation costs 167,000 Utilities Other public improvements Interest expenses 598,753 Administrative expenses 140,640 Total 1,406,393 The City anticipates using tax increment to the extent available to finance redevelopment costs of the project including primarily acquisition of blighted properties and site improvement/preparation costs (demolition), related administrative expenses, and other TIF-eligible expenditures as deemed necessary and related to redevelopment of the project site. The City reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost ($1,406,393) is not increased. The City also reserves the right to fund any of the identified costs with any other legally available revenues, but anticipates that such costs will be primarily financed with tax increments. Section L Estimated Sources of Revenue Tax Increment revenue 1,406,393 Interest on invested funds Other Total 1,406,393 The City anticipates capturing the tax increments from the project for financing of the identified redevelopment costs including acquisition and demolition. As tax increments are collected from the TIF District in future years, a portion of these taxes will be used by the City to reimburse itself for public costs incurred (see Section K). The City also anticipates retaining any remaining increment to finance additional needed public improvement costs. The City reserves the right to finance any or all public costs of the TIF District using pay-as-you-go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The City also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. Section M Estimated Amount of Bonded Indebtedness The maximum principal amount of bonds (as defined in the TIF Act) secured in whole or part with tax increment from the TIF District is $1,406,393. The City currently plans to finance the acquisition and demolition costs through an interfund loan, but reserves the right to issue bonds in any form, including without limitation any interfund loan with interest not to exceed the maximum permitted under Section 469.178, subd. 7 of the TIF Act.