Public Hearing RE Elements of Financial Package for rono Woods

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TIPDistrict Na 1-1 - Overview Proposed uses: Tax increment collected from the District will be used to reimburse the Developer for costs of land acquisition and site development. The actual terms of assistance will be set forth in a development agreement between the City,the HRA and the developer. The City anticipates retaining 10% of the tax increment to pay for administration and other eligible public costs. The table below contains the authorized expenditures in the TIF Plan. These amounts set the maximum expenditures that can be made without a formal modification of the TIF Plan. The TIF Plan does not compel the City or the HRA to make these expenditures. Land/Building Acquisition $775,000 Site Improvements/Preparation $100,000 Public Utilities $77,000 Streets and Sidewalks $562,000 Other Public Housing Improvements $31,000 Interest on Pay-as-you-go Note $1,159,000 Administrative Costs(up to 10%) $70,000 PROJECT COSTS TOTAL $2,774,000 Interfund Loan/Transfers $649,000 Loan Interest $0 Bond Interest $0 Bond Principal TOTAL FINANCING & PROJECT COSTS $3,423,000 Form of financing: It is anticipated that the Authority will use a pay-as-you-go note to reimburse the Developer for eligible expenses and interest on the unpaid balance. The City may use an interfund loan or a transfer of funds to pay for public costs. Tax increment revenues may be used to repay an interfund loan or transfer. Maximum duration: The maximum duration of the District will be 25 years after receipt of the first increment by the HRA or City. The date of receipt by the City of the first tax increment is expected to be 2003. Thus, it is estimated that the District,including any modifications of the Plan for subsequent phases of other changes,would terminate after 2028, or when the Plan is satisfied, If increment is received in 2002, the term of the District will be 2027. Administrative fee: Up to 10% of annual increment, if costs are justified. LGA/HACA penalty: The City elects to make the annual local contribution to the project to exempt itself from the LGA-HACA penalty. Contribution for a housing district is 5% of annual tax increment. The contribution can be made annually or in larger contribution throughout the life of the district. 3 Year Activity Rule At least one of the following activities must take place in the District 0469.176 Subd. 1 a) within 3 years from the date of certification: • bonds have been issued • the authority has acquired property within the district • the authority has constructed or caused to be constructed public improvements within the district The estimated date whereby this activity must take place is June, 2004. Page 2