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Authority has determined that it will be necessary to provide financial assistance to the project. To facilitate <br /> the proposed development,this TIF Plan authorizes the use of tax increment financing to pay for the cost of <br /> certain eligible expenses. The estimate of public costs and uses of funds associated with the District is <br /> outlined in the following table. <br /> USES OF FUNDS TOTAL <br /> Land/Building Acquisition $775,000 <br /> Site Improvements/Preparation 100,000 <br /> Public Utilities 77,000 <br /> Parking Facilities 0 <br /> Streets and Sidewalks 562,000 <br /> Other Public Improvements 31,000 <br /> Interest on Pay-as-you-go Note $1,159,000 <br /> Administrative Costs(up to 10%) 70,000 <br /> PROJECT COSTS TOTAL S2.774.000 <br /> Interfund Loans/Transfers $649,000 <br /> Loan Interest 0 <br /> Bond Interest 0 <br /> Bond Principal 0 <br /> TOTAL FINANCING AND PROJECT COSTS 53,423,000 <br /> The above budget is organized according to the current State reporting forms. The information in Appendix <br /> A contains additional information about the project. <br /> Estimated costs associated with the District are subject to change among categories without a modification <br /> to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed the <br /> Total Project Costs in the table above without formal modification of this Plan pursuant to the applicable <br /> statutory requirements. The Authority may expend funds for qualified housing activities outside of the <br /> District boundaries. <br /> Subsection 2-16. Local Contribution (State Tax Increment Financing Aid) <br /> The City elects to make the annual local contribution to the project(pursuant to M.S.,Section 273.1399, <br /> Subd. 6) to exempt itself from the LGA-HACA penalty set forth in M.S. Section 273.1399. <br /> The District is exempt from the LGA-HACA reduction if the elects to make a qualifying local contribution <br /> at the time of approving the tax increment financing plan. To qualify for the exemption in each year, the <br /> must make a qualifying local contribution to the project in an amount equal to five percent(5%)of the annual <br /> tax increment for the District. The maximum local contribution for all districts in the City in any year is <br /> limited to two percent of the City's net tax capacity, after which point the City must make an additional <br /> contribution equal to the lesser of(a) 0.25 percent of the City's net tax capacity or (b) 3 percent of tax <br /> increment revenues for that year. <br /> Orono HRA Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 2-7 <br />