06-26-1995 Council Packet - Laserfiche WebLink

Home Browse Search

Clean-up Cost Recovery - Extension of District An authority may. with the approval of the municipality, extend the durarion of the district beyond the statutory lirruts if the following circumstances apply: • After the district ’s establishment, contaminants, hazard substances or other materials arc found in the district; • The authority elects not to create a hazardous substance subdistrict; The municipality pays for clean-up from the general fund or other non-Tl^* jc venue. If the district qualifies under the three factors, the district can extend the duration the lesser of: (1) Ten years after the district would otherwise terminate; (2) The number of additional years needed to collect increment equal to the clean-up costs paid by the municipality. Clean-up costs are: (1) Limited to actual costs of removal and remediation. Clean-up costs do not include: (1) Financing or interest costs; (2) Testing and engineering costs. Clean-up costs must be reduced by any amounts recovered form private or responsible parties. Economic Development Districts The provision that permits a small city (5,000 population or less) to establish a commercial facility with an economic development district has been eliminated. An economic development district for which certification is requested after June 30,1995, may expend increment to pay for site preparation and public improvements if: • Eighty percent or more of the district ’s area includes bedrock; • The estimated cost of the physical preparation of the site exceeds the land ’s fair market value prior to completion of the preparation; • The increment is only used to prepare the site and pay reasonable administrative costs. Parcels Not Included in Districts The “20 year’’ exclusion regarding parcels formerly in an economic development district has been deleted from the act The section, however, has been amended to prohibit parcels classified under the green acres or agricultural preserves provision from being included in TIF districts. 1995 Policy Narrative