Laserfiche WebLink
funding reform that involved the state increasing school aid in lieu of the local general <br />education levy (a component of school district tax levies). <br />7. Reductions in Tax Capacity Rates. The taxable value of real property is <br />determined by multiplying the market value of the property by a tax capacity rate. Tax <br />capacity rates vary by certain categories of property; for example, the tax capacity rates <br />for residential homesteads are currently less than the tax capacity rates for commercial <br />and industrial property. In 2001 the Minnesota Legislature enacted property tax reform <br />that lowered various tax capacity rates to "compress" the difference between the tax <br />capacity rates applicable to residential homestead properties and commercial and <br />industrial properties. <br />8. Changes to Local Tax Rate. The local tax rate to be applied in the tax <br />increment financing district is the lower of the current local tax rate or the original local <br />tax rate for the tax increment financing district. In the event that the Current Local Tax <br />Rate is higher than the Original Local Tax Rate, then the "excess" or difference that <br />comes about after applying the lower Original Local Tax Rate instead of the Current <br />Local Tax Rate is considered "excess" tax increment and is distributed by Sherburne <br />County to the other taxing jurisdictions and such amount is not available to the City as <br />tax increment. <br />9. Legislation. The Minnesota Legislature has frequently modified laws <br />affecting real property taxes, particularly as they relate to tax capacity rates and the <br />overall level of taxes as affected by state aid to municipalities. <br />10. Affordable Housing Declaration. The TIF District will cease to qualify as <br />a housing tax increment financing district and the TIF Note will terminate if the Project <br />ceases to be operated in accordance with the Declaration required by and defined in the <br />Development Agreement defined below. <br />F. The Note Holder acknowledges that the Note was issued as part of a TIF <br />Development Assistance Agreement between the City and the Developer dated <br />_, 2018 ("Development Agreement"), and that the City has the right to suspend payments under <br />this Note and/or terminate the Note upon an Event of Default under the Development <br />Agreement. <br />G. The Note Holder acknowledges that the City makes no representation about the <br />tax treatment of, or tax consequences from, the Note Holder's acquisition of [the Note]/[an <br />interest in the Note as collateral for the Loan]. <br />WITNESS our hand this day of 120. <br />Note Holder: <br />f <br />} a` <br />1 <br />e.,, Its <br />o� <br />D-10 <br />519394v81SB EL185-49 <br />