5.16. SR 06-19-1995 - Laserfiche WebLink

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"except for redevelopment projects which may require more assistance than other projects, the average tax increment subsidy shall not exceed 15 percent of the project's finished market value:' Section V of the TIF policy guidelines can be found with the Mowry/Neos supporting information. Utilizing the 15 percent maximum grant, the following illustrations are offered: Finished Market Value $375,000 $400,000 $425,000 $450,000 • Maximum TIF Grant $56,250 $60,000 $63,750 $67,500 Precise information on the finished market value of the Mowry/Neos project is not known at this writing. With past TIF projects, the Contract for Private Development includes an Assessment Agreement executed by the EDA, County Assessor, and expanding company. This Agreement establishes the project's finished market value from which taxes are generated. The County Assessor's office establishes the finished market value following a review of plans and specifications. Until that number is derived, the Mowry/Neos project has been estimated at $375,000. If, for example, a $60,000 TIF grant is approved, the repayment period would require tax increment payments for five years (from 1997 through 2001, inclusive). This information is more thoroughly outlined in a separately attached Exhibit D marked "revised" in the upper right hand corner. Please note in the column marked "2001" that the city/EDA collects a "cumulative captured tax increment" of approximately $67,462 and the $60,000 TIF grant is therefore repaid. This enables TIF District No. 12 to be decertified by December 31, 2001, and taxes generated in 2002 will be collected by the local taxing jurisdictions. If, say, a $60,000 TIF grant is approved, the LGA/HACA reductions are also revised, as follows: Estimated LGA/HACA reduction of approximately $4,871 per year times five years equals $24,355. • Lastly, a 10 percent "qualifying local contribution" can be estimated as follows: