Public Hearing RE Elements of Financial Package for rono Woods

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Subsection 2-12. Use of Tax Increment Revenues derived from tax increment from a housing district must be used solely to finance the cost of housing projects as defined in M.S., Section 469.174, subd. 11. The cost of public improvements directly related to the housing projects and the allocated administrative expenses of the Authority may be included in the cost of a housing project. Within this limitation,the Authorityhereb determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1. to pay the principal of and interest on bonds issued to finance a project; 2. to finance, or otherwise pay the public development costs of the Housing Project Area No. 1 pursuant to the M.S. Sections 469.001 to 469.047; 3. to pay for project costs as identified in the budget set forth in the TIF Plan; 4. to finance,or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5. to pay principal and interest on any loans, advances or other payments made to or on behalf the Authority or for the benefit of Housing Project Area No. 1 by a developer; 6. to finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and 7. to accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165,and/or M.S., Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, subd. 4. Tax increments generated in the District will be paid by Hennepin County to the Authority for the Tax Increment Fund of said District. The Authority will pay to the developer(s)annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements,demolition and relocation,site preparation,and administration. Remaining increment fultds will be used for Authority administration(up to 10 percent)and the costs of public improvement activities. Pursuant to M.S., Section 469.1763, (1)At least 80%of the tax increment derived from the District must be expended on Public Costs incurred within said district, and up to 20%of said tax increments may be spent on Public Costs incurred outside of the District but within Housing Project Area No. 1;provided that in the case of a housing district,a housing project,as defined in M.S., Section 469.174, Subd. 11 is deemed to be an activity in the District,and(2)pubic costs within the District shall be limited to reimbursement of public costs paid before or within five years after certification of said district by the County Auditor and interest on all such unreimbursed expenditures. Orono HRA Tax Increment Financing Plan for Tax Increment Financing District No. 1-1