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• Apartments, the city has captured the new property taxes and has used them to repay the TIF bonds. Although the bonds will be repaid in 1997, it is believed that sufficient funds exist in this debt service account to enable the city to decertify this TIF District by the end of this year. This is one year earlier than anticipated. Beginning in 1996, the property taxes from Evans Park will go to Sherburne County for normal redistribution to the various taxing jurisdictions. It is believed that the debt service account will possess approximately $80,000 in additional funds after the bonds have been repaid. Because the City of Elk River desires to expend these funds on activities consistent with Minnesota Statutes, a modification to the TIF Plan is warranted. According to the proposed plan modification, the additional tax increment funds would be spent on activities in three general categories: • Business Park and Industrial Park Activities • Urban Renewal and Redevelopment Activities • Infrastructure and Improvements. The proposed expenditures in these three categories have been overstated • and total $175,000. This is done to give certain flexibility to how the actual $80,000 may be expended. The specific areas that the TIF funds would be expended are highlighted in Exhibit B-1 through B-5 of the TIF Plan. Business Park and Industrial Park activities are limited to the emerging Business Park area in the western part of the community and emerging light industrial and future business park opportunities in the eastern part of the community. Redevelopment opportunities will be limited to the central commercial district in downtown as well as the office district along Main Street and Jackson Avenue. Infrastructure improvements may include surface water management opportunities in the office district. With respect to Tax Increment Financing District No. 3, it is considered an economic development district that was created in 1986 to reflect the second phase of the Elk River Mall area (see attached hearing notice map). District No. 3 will be decertified by the City Council in 1995. However, approximately $550,000 will be available from the debt service account to fund various activities authorized by Minnesota Statutes. The proposed activities are identical to those described in the proposed modification to TIF Plan No. 2, but reflect expenditures totaling $625,000. The proposed • locations of these activities can be found in Exhibits B-1 through B-5.