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Publicorp, Inc. Public Finance Seminar 2001 <br /> III. Types of TIF Districts <br /> As indicated above, to create a TIF district, the property and proposed use must meet the qualifications of <br /> • one of the types of districts authorized by law. Each district type has different qualification requirements, <br /> maximum durations, and use restrictions. The types of districts authorized by law are as follows: <br /> ❑ Redevelopment District <br /> ❑ Qualification Requirements: <br /> 48 Parcels that make up 70% of the district are improved. To be considered <br /> "improved,"at least 15%of the parcel's area must contain improvements. <br /> AOMore than 50% of the buildings(excluding outbuildings) are structurally <br /> substandard to a degree requiring substantial renovation or clearance. A <br /> building is not substandard if it complies with building codes or could be <br /> brought up to code at a cost of less than 15%of the cost of a comparable <br /> new building on that parcel. This determination must be made by an <br /> interior inspection unless access cannot be made to the structure or there is <br /> enough evidence supporting that the building is structurally substandard; <br /> or <br /> ✓ The district consists of vacant, unused, under used, inappropriately used, <br /> or infrequently used rail yards,rail storage facilities or excessive or vacated <br /> railroad rights-of-way. , <br /> 0 ✓ Changes by the 2000 Legislature expand the areas that qualify as <br /> redevelopment districts to include unused or underused tank facilities <br /> adjacent to railroad facilities. Properties on which the tank facilities have <br /> been removed also qualify. This section also allows a redevelopment <br /> district to qualify by using more than one of the three tests(blight,railroad <br /> facilities, or tank facilities)to qualify parts of the district. <br /> ❑ Maximum Duration <br /> ✓ May collect increment for twenty-five years after the date of receipt of the <br /> first increment. May designate commencement in the year when the <br /> market value reaches an agreed-upon minimum (no more than four years <br /> after date of certification), in which case the district duration is 20 years <br /> after such commencement date. <br /> ❑ Important Restrictions <br /> ✓ At least 90% of the increment must be used to finance the cost of <br /> correcting conditions that allow designation of redevelopment districts. <br /> • <br /> How to Set Up a TIF District- 9 <br />