Public Hearing RE Elements of Financial Package for rono Woods

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of those parcel(s) in the District's original net tax capacity or (B) the Authority agrees that, notwithstanding M.S., Section 469.177, Subd. 1,the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s)eliminated from the District. The Authority must notify the County Auditor of any modification that reduces or enlarges the geographic area of Housing Project Area No. 1 or the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. 2. Activity Within 3 Years No tax increment shall be paid to the Authority for the District after three(3)years from the date of certification of the Original Net Tax Capacity value of the taxable property in the District by the County Auditor(MS. Section 469.176, Subd la)unless: (a)bonds have been issued in aid of the project containing the district pursuant to M.S. Section 469.178, or any other law, except revenue bonds issued pursuant to M.S., Sections 469.152 to 469.165,or (b)the Authority has acquired property within the District, or (c)the Authority has constructed or caused to be constructed public improvements within the District. The bonds must be issued, or the Authority must acquire property or construct or cause public improvements to be constructed by approximately June,2004 and report such actions to the County Auditor. 3. 4-Year Knockdown Parcels without"qualifying activity"will be knocked out of the District after four years from the date of certification of the original net tax capacity. M.S. Section 469.176, Subd. 6 defines qualifying activities as"demolition,rehabilitation or renovation of property or other site preparation,including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems" in accordance with the TIF Plan. For purposes of the knock down requirements,qualified improvements of a street are limited to(1)construction or opening of a new street,(2)relocation of a street,and(3)substantial reconstruction or rebuilding of an existing street. Knock down means that the original net tax capacity of that parcel is excluded from the original net tax capacity of the District and no tax increment may be collected from that parcel. If the Authority or the owner of the parcel subsequently commences a qualifying activity in accordance with the TIF Plan,the Authority shall certify to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The Authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district.The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. The Authority, the City or a property owner must improve parcels within the District by approximately June,2005 and report such actions to the County Auditor. Orono HRA Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 2.10