TIF REPORT PART 3 - Laserfiche WebLink

Home Browse Search

Five Year Rule: MN Statute 469.1763 places limits on the amount and the length of time in which revenues from the TIF district may be used for activities outside the district. In general, for the Rice Creek Center TIF district, at least 75%of tax increment revenues must be used to pay for qualified costs within the district. This is considered the 'in district' percent. Subdivision 3 of this section of the statute further specifies that within five years, tax increment must actually be paid for activities, bonds issued, contracts entered into in order for revenues to be considered to have been spent. The five year deadline was January 2004, by which time the development agreement was signed and obligations were issued. Geographic Enlargements: MN Statute 469.175 sub 4(t)places limits on the length of time a TIF district may add parcels.No parcels may be added five years after the certification date.The Rice Creek Center TIF may not be enlarged after January 2004. Recommendations: This district is expected to have a cash balance of$136,927 at the end of 2011 and it is expected to increase annually. This district is currently paying on two obligations, one of which is outside the district. There is additional room for pooling (see below) to help reduce the balance. • Budget Modifications: Not recommended. • Administrative Costs Limit: 10%of expenditures is anticipated to be $165,476 or 7.4%at the end of the district. • Pooling Limitation: This district currently has$ 136,927 available for pooling outside the district. • 5-Year Rule: Deadline was January 2004. The development agreement and 200IC GO Tax Increment Bond was issued prior to this date. • 4-Year Rule: Met January 2003. • Developer Obligations: This district is paying the 2011B GO Tax Increment Refunding bond until 2016. 0 Management Review&Analysis-Tax Increment Financing Districts February 2012 New Brighton, Minnesota Page 159