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tax increment subsidy shall not exceed fifteen percent of the <br />project's finished market value." However, "under <br />extraordinary circumstances, the City Council reserves the right <br />to adjust the average subsidy level." <br />Because the TL Feeding Systems project is the initial industrial <br />user in the Business Park, and, because of higher anticipated <br />acquisition costs, the EDA recommended that the City Council <br />waive the 15 percent maximum TIF grant for this project. <br />It is expected that the TL Feeding Systems project will likely <br />have a finished market value of $675,000 (land and building). A <br />$175,000 TIF grant equates to a grant in the amount of 28 <br />percent of the project's finished market value. <br />Pav As-You-Go TIFDistrict <br />It is proposed that TIF District No. 13 be structured as apay-as-you-go <br />district. This requires the company and its principals to incur the cost of <br />acquiring the site and conducting the site development and site preparation <br />activities up front. The project's new property taxes (otherwise known as the <br />tax increment) will be repaid to TL Feeding Systems twice ayear - in July <br />• and in December. <br />Action Requested <br />After conducting the TIF public hearing on the TIF Plan for TIF District No. <br />13, the City Council is asked to adopt the attached resolution. Approval of <br />the TIF Plan is subject to the execution of a Contract for Private <br />Development with a specific reference to the project's finished market value <br />and a Tax Increment Revenue Note which indebts the city to TL Feeding <br />Systems, Inc. Approval of the TIF Plan is also subject to the City Council <br />waiving the 15 percent maximum TIF grant as found in the TIF Policy <br />Guidelines. <br />• <br />