7.6. SR 04-16-2018 - Laserfiche WebLink

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City of Elk River, Minnesota SPRINGSTED Page 6 Other affordable housing $0 Construction of affordable housing $480,523 Administrative expenses $82,410 Interest expenses $261,167 Total $824,100 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 ($824,100) 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 Estimated Sources of Revenue Estimated Amount Tax Increment revenue $824,100 Interest on invested funds Total $824,100 The City anticipates providing financial assistance to the proposed development through the use of a pay-as-you-go note. As tax increments are collected from the TIF District in future years, a portion of these taxes will be distributed to the developer/owner as reimbursement for public costs incurred (see Section K). 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 $824,100. The City currently plans to finance the improvements and affordable housing costs in the form of a pay-as-you go revenue note to reimburse the developer for certain project costs associated with construction of the project, 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. Section N Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive, this value is based on the current assessment year. The Estimated Market Value of all property within the TIF District as of January 2, 2017, for taxes payable in 2018, is estimated to be $61,100. Upon establishment of the TIF District and anticipated subsequent reclassification of property to a residential rental classification of 1.25%, it is estimated that the original net tax capacity of the TIF District will be approximately $764.