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TIF District <br />• - Assumes a renewal and reno i <br />vat on district is created at King/Main <br />- Assumes pay-as-you-go TIF District -Developer bears all up-front <br />costs <br />- LGA/HACA Reduction: Qualifying local contribution is 10% of <br />annual increment; LGA reduction is a six year window, in 7th year <br />the reduction is 12.5% of the estimated penalty, in 8th year the <br />reduction is 25%, in 9th year 37.5%, etc. <br />Summary <br />A project debt of $275,000 can be retired in seven years with <br />reimbursements credited to the developer under apay-as-you-go TIF <br />District: <br />Project debt of $275,000 divided by annual tax increment of <br />$40,294 equals 6,8 years, say, 7 years. <br />Other Considerations <br />Supplemental micro-loan at a reduced interest rate for the renovation <br />• component of the County Administration building. <br />Supplemental block grant micro-loan at a reduced interest rate for the <br />renovation component of the County Administration building. <br />Outright redevelopment grant from TIF Districts No. 1 and No. 3 - <br />requires a TIF Plan amendment. <br />Suggested Course of Action <br />Communication to ECM outlining HRApay-as-you-go renewal and <br />renovation TIF District at King and Main, supplemental loans through <br />EDA, and redevelopment grant from TIF Districts No. 1 and No. 3 <br />from the city. A TIF application accompanies the correspondence (one <br />$5,000 fee covers pay-as-you-go request and plan amendment to plans <br />from Districts No. 1 and No. 3), and applications for supplemental <br />micro-loans accompany the correspondence. <br />HRA creates pay-as-you-go TIF District <br />EDA considers micro-loans <br />• City considers redevelopment grant from Districts No. 1 and No. 3 <br />