Public Hearing RE Elements of Financial Package for rono Woods

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"Housing district"means a type of tax increment financing district which consists of a project, or a portion of a project, intended for occupancy, in part, by persons or families of low and moderate income, as defined in chapter 462A, Title II of the National Housing Act of 1934, the National Housing Act of 1959, the United States Housing Act of 1937, as amended, Title V of the Housing Act of 1949, as amended, any other similar present or future federal, state, or municipal legislation, or the regulations promulgated under any of those acts.A district does not qualify as a housing district under this subdivision if the fair market value of the improvements which are constructed in the district for commercial uses or for uses other than low and moderate income housing consists of more than 20 percent of the total fair market value of the planned improvements in the development plan or agreement. The fair market value of the improvements may be determined using the cost of construction,capitalized income,or other appropriate method of estimating market value. Housing project means a project,or portion of a project,that meets all the qualifications of a housing district under this subdivision, whether or not actually established as a housing district. In meeting the statutory criteria the Authority relies on the following facts and findings: • The District consists of one parcel. • The development will consist of 62 units of rental housing for senior citizens. • 20%of the units will be occupied by persons with incomes less than 50%of the area median income Pursuant to 469.176 Subd. 7,the District does not contain any parcel or part of a parcel that qualified under the provisions of Section 273.111 or 273.112 of Chapter 473H(Green Acres)for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Subsection 2-7. Duration of the District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1,the duration of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. Ib,the duration of the District will be 25 years after receipt of the first increment by the Authority(a total of 26 years). The date of receipt by the Authority of the first tax increment is expected to be 2003. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes,would terminate after 2028, or when the TIF Plan is satisfied. If increment is received in 2002, the term of the District will be 2027. The Authority reserves the right to decertify the District prior to the legally required date. Subsection 2-8. Original Net Tax Capacity The Original Net Tax Capacity(ONTC)value of the District is the base value of the parcels. The ONTC certified for the district pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1,will be based on the Assessor's Estimated Market Value in 2000 for taxes payable 2001. The value will be prorated after the parcel is split for development. Based on the current market value, the ONTC of the District is estimated to be$1,570. Changes in the following factors may alter the amount of the ONTC in future years: 1. change in tax exempt status of property; 2. reduction or enlargement of the geographic boundaries of the district; 3. change due to adjustments,negotiated or court-ordered abatements; 4. change in the use and tax classification of the property; 5. change in statutory rates used to determine Tax Capacity. Orono HRA Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 2-3