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6. Individual Summary of Tax Increment Financing 29 6. Summary of Individual Tax Increment Financing Districts Obligations: The Lakeview South TIF District currently has an interfund loan for $8,650 from the Municipal Development Fund #560. The district is also obligated to pay the 2012B G.O. TIF Refunding Bonds (refunds the 2004B G.O. TIF Bonds). In-District Obligations: 1997D (Refunded with 2009B) – Paid in 2013 Interfund Loan with the Municipal Development Fund – Through 2018 Pooling Obligations: 2004B (Refunded with 2012B) – Through 2020 Proceeds to TIF #31 & #32 Three Year Rule: MN Statute 469.176 sub 1a was repealed in 2005. However, the requirement is still effective for districts which were adopted when the rule was in place. The three-year rule states that, within three years from certification date, bonds must be issued; the authority has acquired land or has caused public improvements to be constructed in the district. Four Year Rule: MN Statute 469.176 sub 6 requires that, within four years from certification date, certain activities must have taken place on each parcel within the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. If these activities have not taken place within the required time, the parcel is ‘knocked down’ from the district, meaning, that no increment may be collected from that individual parcel for the duration of the district. The law, does, however allow for reinstatement procedures should the required activity later occur on the parcel. The Lakeview South TIF Four Year Rule deadline was November 2000. 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 Lakeview South 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 November 2001, by which time the development agreement was signed and obligations were issued. Geographic Enlargements: MN Statute 469.175 sub 4(f) 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 Lakeview South TIF may not be enlarged after November 2001.