Public Hearing RE Elements of Financial Package for rono Woods

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4. 5-Year Limit After five years from the date of certification of the TIF District,tax increment may only be used to (1) repay existing bonds the proceeds of which must be used to finance the activity, are issued and sold to a third party before or within five years after certification,the revenues are spent to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably expected to be spent before the end of the later of(a) the five-year period, or (b) a reasonable temporary period within the meaning of the use of that term under § 148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve or replacement fund; (2)reimburse a developer or other third party for eligible expenses paid before or within five year period, including interest on unreimbursed costs;(3)eligible administrative expense;and(4)eligible expenses under M.S.Sect on 469.1763, Subd. 2 (Pooling). Subsection 2-24. Administration of the District Administration of the District will be handled by the City Administrator. Subsection 2-25.Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, and M.S., Section 469.176, Subd. 3, administrative expenses means all expenditures of the Authority, other than: 1. amounts paid for the purchase of land; 2. amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the project; 3. relocation benefits paid to or services provided for persons residing or businesses located in the project; or 4. amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178; or 5. amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in sections 1 to 3. For districts for which the request for certification were made before August 1, 1979,or after June 30, 1982, administrative expenses also include amounts paid for services provided by bond counsel,fiscal consultants, and planning or economic development consultants. Tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total tax increment expenditures authorized by the TIF Plan or the total tax increment expenditures for Housing Project Area No. 1,whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the county's actual administrative expenses incurred in connection with the District. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the county treasurer shall deduct an amount equal to 0.25 percent of any increment distributed to the Authority and the county treasurer shall pay the amount deducted to the state treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. Orono HRA Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 2-11