4.1. JFC SR 01-30-2018 - Laserfiche WebLink

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1, Assistance for"1 is required to meet the uses identified by statute including, but not tinvtcd to the following: M public improvetrictits Land acquisition and land write down Loans Site preparation and itriprovcrnent Demolition Legal, administration, and engineering 2. T'he preferred method of TIF is pay-as-you-go for eligible costs as ren'Tibursement, upfront financing maybe considered on a case-by-case basis. 3. A maximum of ten percent (10'"16) of any tax increment received from the district shall be rctaincd by the city to reiml)urse :adt-.Liiiu*stritiv-e costs. 4. All TIF assistance must be accompanied by a signed development agreerrictit including a minit"nurnaSsesSrtient value. The developer niust Provide additional financing guarantees to ensure completion of the project, including, but not limited to: letters of credit, personal guarantees, corporate guarantees, etc. 5. TlF District's shall be limited to the minimum term neccssary to meet the project needs. Only projects cx,cceding the objecciVes identified in this policy will be considered to exceed the following general thresholds: • redevelopment District 15 Years (Max is 26) • Housing District 15 Years (Nlax is 26) • Soils Condition District 15 Years (Max is 2 1) ® Renewal and. Renovation District 10 Years (N/Jax is 16) • E'conori-iic Development District 8 Years (Max is 9) 6. policy Considerations 0 F"ach project is reciuired to meet the "but-for" rest to determine the need for and level of assistance. This test and the amount of tax increment generated detenru*nes the district's term. It is difficult to facilitate a redevelopment, housing or soils condition district for less than the niaxii-num term as the extraordinary costs involved are usually significant, 9 '111c, term of the district could coincide with the amount of tax increment the city Mas tis spend on its priorities within a project area. ® Of all the,TIP districts, the Economic Development District is most often the one limited to a lesser terin. I...conomic Development Districts are really "incentive" districts where it is not so much the extraordinary costs as it is an 4"iJJCCJJt11Te" to get a business to locate in a community. In the other districts, the costs are easily identifiable and usually significant such as demolition, relocation, environn-lental remediation, and the cost differential between triarket rate and incorrie/rcrit restricted housing. qspgg ,aly)l'g, �2,-