EDSR MEMORANDUM 12-08-1997 - Laserfiche WebLink

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EDA Agenda Memo December 3, 1997 Page 7 • This Development Agreement will be fairly simple due to the fact that this is a pay-as-you-go tax increment district. This puts the risk in the hands of the developer, rather than the city. A pay-as-you-go tax increment district is most beneficial for the city because basically if the developer does not build the building or pay their taxes on a timely basis, the city cannot reimburse them because there would be no funds available. Therefore, the developer bears 100 percent of the burden of completing the project and paying taxes on the project. Attachments • Resolution 97 • TIF Plan No. 17 • Cash Flow/Financial Analysis of District,No. 17 • Schedule for Establishing TIF District No. 17 Recommendation Staff recommends approval of Resolution 97- , a Resolution Modifying Development District No. 1 and Adopting the Development Program Therefor; and Establishing Within Development District No. 1, Tax Increment Financing District No. 17, and Adopting the Related Tax Increment Financing Plan Therefor. 6. Request City Council to Call for Public Hearing on April 6, 1998, to Establish Tax Increment Financing.District No. 18 (Morrell Companies) Issue The purpose of this item is to set in motion the schedule for establishment of Tax Increment District No. 18 by requesting the City Council to call for a public hearing to be held on April 6, 1998. Background A tax increment application has been received by Morrell Companies and is attached to this report. This application indicates a requested tax increment subsidy of and an overall project cost of . Staff has had several discussions with the applicants regarding the method of providing this assistance. Although the applicant has requested that the assistance be provided up front,staff