08-27-1984 Council Packet - Laserfiche WebLink

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IMPLEMENTATION PROCEDURES The first step in implementing a Qualified Pro- ject is to create a General District. Following the crea- tion of the General District, the Authority must form a TIF District within the General District by prepar- ing a TIF Plan which describes, among other things, the property to be included in the TIF District and the type of Qualified Project that will be involved (Redevelopment Project, Housing Project or Eco- nomic Development Project). The property compris- ing a TIF District may be noncontiguous, thereby enabling redevelopment to occur on an area -wide basis while excluding nonblighted areas from the TIF Plan and the TIF District. Before the Authority may adopt a TIF Plan, the municipality (if different than the Authority) in which the TIF District is located must approve the TIF Plan by holding a public hearing and making the following Hidings: (il that the tax increment project comprising the proposed TIF District is a Redevelopment Pro- ject, a Housing Project, or an Economic Development Project; (ii) that the tax increment financing is neces- sary because private development or redevelopment of the project would not occur, or at least would r A occur in the foreseeable future, without the use of tax increments; (iii) that the TIF Plan conforms with the general development or redevelopment plan of the municipality; and (iv) that the TIF Plan will provide maximum opportunity for the development or rede- velopment of the TIF District by private enterprise. In addition to the adoption of TIF Plan, the Authority must provide an opportunity to the mem- bers of the county boards of commissioners, and to the members of the school board of any school district in which any portion of the TIF District is located, to meet with the Authority. The Authority will present to them its estimate of the fiscal and economic impli- cations of such TIF District. DURATION Basically, a TIF District may remain in existence at leant as long as bonds continue to be outstanding. However, a Qualified Project comprising a TIF Dis- trict may receive tax increments only for a certain Period of time. A Redevelopment Project or a Housing Project cannot receive tax increments for more than 25 years from the date of the receipt of the first tax ►ncreme►tt An Fconomic Development Project cannot Upon the approval of the TIF Plan by the municipality, the Authority must confirm commit- ments for the redevelopment or development of the property to be acquired within the TIF District. Pur- suant to the Act, no Authority may, at one time, acquire from the proceeds of a bond sale more than 25% of the acreage within a Redevelopment Project, or We of the acreage within a Housing or Economic udvelopment Project, until the Authority has obtained a firm written, agreement with a private developer for the development or redevelopment of such property. In addition, the agreement must pro- vide recourse for the Authority should the develop- ment or redevelopment not be completed. After the County Auditor has certified the origi- nal assessed value of the TIF District, the Authority may issue general obligation or revenue bonds for the purpose of acquiring and making certain improve- ments to property identified in the TIF Plan. Once the planned site improvements have been completed, the Authority may sell the property to a private developer at a price which reflects the "fair market value" of the property (usually lower than the actual market value), and the new property owners may begin to develop the property according to the previous commitments with the Authority. The County Auditor must certify the amount of the captured assessed value to the Authority each year (the amount by which the assessed value after comple- tion of the development exceeds the original assessed value). This amount is the tax increment, and will be pledged to the repayment of the tax increment bonds issued to acquire and improve the property. receive tax increments for more than 8 years from the date of receipt of the first tax increment, or 10 years from the approval of the TIF Plan, whichever is less. After such time, the TIF District terminates, and all taxing jurisdictions receive property tax revenues as they otherwise would. (These are maximum pe: iodn. and, depending upon the size of the tax increment, a shorter period may be adequate to retire the bonds.)