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1. i0ssistancc forTIF is required to) meet the uses identified 1)), statute including,but not <br /> limited to the fol.lowing: <br /> a Public improvements <br /> R I-and acquisition and land write down <br /> ®' Loan.s <br /> 0 Site preparation and ni-nprovement <br /> W Demolition <br /> a .1...,ega1, administration, and engineering <br /> 2. The preferred method of TIF is pay-as-you-go for eligible costs as reimbursement, <br /> upfront financing maybe considered on a case-by-case basis. <br /> 3. A triaximuria of ten percent (10%) of any tax increment received from the district <br /> shall be retained by the city to reimburse administrative costs. <br /> 4. All TIF assistance must be accompanied by a signed development agreement <br /> including a minimum asscsstrient value. The developer must provide additional <br /> financing guarantees tet ensurecorripletion of the project, including, but not limited <br /> to. letters of credit, personal guarantees, corporate guarantees, etc, <br /> 5. TlF' District's, shall be Bruited to the minii-nurn term necessary to meet the project <br /> needs. Only projects exceeding the objectives identified in this policy will be <br /> considered to exceed the following general thresholds: <br /> • Redevelopment District 15 Years (Max is 26) <br /> • Housing District 15 Years (Max is 26) <br /> ® Soils Condition District 15 Years (Max is 24) <br /> • Renewal and Renovation District 10 Years (Max is t 6) <br /> • 1"conornic Development District 8 Years (Max is 9) <br /> G. Policy Considerations <br /> • Each project is required to meet the "but-for" test to determine the need for and <br /> level. of assistance. This test.and the amount of tax increment generated <br /> determines the district's term. It is difficult to facilitate a redevelopment, housing <br /> or soils condition district for less than the maxiii-itim terns ;is the extraordinary, <br /> costs involved arc usually significant. <br /> • The term of the district could coincide with the -amount of tax increment the city <br /> has to spend on its priorities within a project area, <br /> ® Of all the'I"U' districts, the Economic Development District is most often the <br /> one limited to a lesser term. Economic Development Districts are really <br /> "incentive" districts where it is not so much the extraordinary costs as it is an <br /> "incentive" to get a business to locate in a con-irmintity. In the other districts, the <br /> costs are easily identifiable and usually significant such as demolition, relocation, <br /> environmental remediation, and the cost differential between market rate and <br /> income/rent restricted housing. <br /> of^lfg s <br /> , <br /> Ely, <br />