7.2 SR 01-03-2022 - Laserfiche WebLink

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City of Elk River, Minnesota Tax increments derived from a housing district must be used solely to finance the cost of housing projects as defined in section 469.174, subd. 11 and 469.176, subd. 4d of the TIF Act. The cost of public improvements directly related to the housing projects and the allocated administrative expenses of the City may be included in the cost of a housing project. The City anticipates using tax increment revenues to finance the costs of TIF eligible and development costs related to construction of the new multifamily housing units within the TIF District. Section F Duration of the TIF District Housing districts may remain in existence 25 years from the date of receipt of the first tax increment. Modifications of this TIF Plan (see Section AB) shall not extend beyond these limitations. Pursuant to Minnesota Statutes section 469.175, subd. 1(b), the City specifies 2024 as the first year in which it elects to receive tax increment from the TIF District, which is no later than four years following the year of approval of the TIF District. Thus, the City may collect increment from the TIF District through December 31, 2050 but anticipates the TIF District being decertified following December 31, 2039 (see Section R) (up to 15 years of collection to meet the City's Tax Increment Policy). All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the City. Section G Property to be Included in the TIF District The TIF District comprises of one parcel that is approximately 6.64 acres. A map showing the location of the TIF District is shown in Exhibit I. The boundaries and area encompassed by the TIF District are described below: Parcel Number Legal Description PARCEL D-N. THAT PT OF THE FOLLOWING DESC 75-134-2305 PARCEL D LYING N OF WLY EXTENSION OF THE CTR LINE OF 6TH ST (FORMERLY PLATTED AS 8TH ST) The area encompassed by the TIF District shall also include all street or utility right-of-ways located upon or adjacent to the property described above, as illustrated in the boundary map included in Exhibit I. Section H Property to be Acquired in the TIF District The City may acquire and sell any or all of the property located within the TIF District; however, the City does not anticipate acquiring property. Section I Specific Development Expected to Occur Within the TIF District The project as proposed by The Briggs Company is anticipated to include the construction of approximately 44 rental housing units comprising studio, 1, 2- and 3-bedroom units with supporting garages. In order to qualify as a housing district, at least 20% of the units will be occupied by persons or families at 50% of area median or 40% of the units will be occupied by persons or families at 60% of area median income. As proposed, the project is expected to include 20% of the units not to exceed 50% of the area median income. The City anticipates Baker Tilly Municipal Advisors, LLC Page 3