Public Hearing RE Elements of Financial Package for rono Woods

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The amount of the local contribution must be made out of unrestricted money of the City,such as the general fund, a property tax levy, or a federal or state grant-in-aid which may be spent for general government purposes. The local contribution may not be made,directly or indirectly,with tax increments or developer payments. The local contribution must be used to pay project costs and cannot be used for general government purposes. Such contribution may be in form of either lump sum or annual payments(in addition to tax increment payments)towards costs identified in this Plan or other costs related to that development or redevelopment. The contribution may also be made in the form of public improvements financed by the City or other unit of government with unrestricted funds. Subsection 2-17. Fiscal Disparities Election It is not anticipated that the District will contain commercial/industrial property. Therefore, the fiscal disparities provision does not apply to the District. Subsection 2-18. Business Subsidies Pursuant to M.S. Statutes 116J.993, Subdivision 3, assistance for housing is not considered a business subsidy. Subsection 2-19. County Road Costs Pursuant to M.S.,Section 469.175,Subd. la,the county board may require the Authority to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgement of the county,substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. In the opinion of the Authority and consultants,the proposed development outlined in this T1F Plan will have little or no impact upon county roads. If the county elects to use increments to improve county roads,it must notify the Authority within forty-five days of receipt of this TIF Plan. Subsection 2-20. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the Authority has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for"test was not met: IMPACT ON TAX BASE 2000/2001 Estimated Captured Total Net Tax Capacity(CTC) Percent of CTC Tax Capacity Upon Completion to Entity Total Hennepin County 1,385,934,076 72,365 0.0052% City of Orono 17,779,001 72,365 0.4070% Orono ISD No. 278 23,991,541 72,365 0.3016% Orono HRA Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 2-8