Laserfiche WebLink
4 <br />1. Assistance for TIF is required to meet the uses identified by statute including, but not <br />limited to the following: <br /> Public improvements <br /> Land acquisition and land write down <br /> Loans <br /> Site preparation and improvement <br /> Demolition <br /> Legal, administration, and engineering <br /> <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 /> <br />3. A maximum of ten percent (10%) of any tax increment received from the district <br />shall be retained by the city to reimburse administrative costs. <br /> <br />4. All TIF assistance must be accompanied by a signed development agreement <br />including a minimum assessment value. The developer must provide additional <br />financing guarantees to ensure completion of the project, including, but not limited <br />to: letters of credit, personal guarantees, corporate guarantees, etc. <br /> <br />5. TIF District’s shall be limited to the minimum 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 21) <br /> Renewal and Renovation District 10 Years (Max is 16) <br /> Economic Development District 8 Years (Max is 9) <br /> <br />6. 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 maximum term as the extraordinary <br />costs involved are usually significant. <br /> <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 /> <br /> Of all the TIF 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 community. 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 /> <br /> <br /> <br />