10-28-2015 Council Packet - Laserfiche WebLink

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Term and restrictions: Redevelopment districts may collect increment for twenty-five years after the date of receipt of the first increment. May designate commencement in the year when the market value reaches an agreed-upon minimum (no more than four years after date of certification), in which case the district duration is 20 years after such commencement date. At least 90% of the increment must be used to finance the cost of correcting conditions that allow designation of redevelopment districts. Renewal and Renovation Districts Qualifications: The same parcel and area requirements apply as for a redevelopment district, but only 20% of the buildings need be structurally substandard; another 30% of the buildings must require renovation or clearance to remove conditions such as inadequate street layout, incompatible land uses, or obsolete buildings not suitable for improvement or conversion to other uses (that is, a lesser standard of blight), Term, Restrictions.: May collect increment for fifteen years after the date of receipt of the first increment. At least 90% of the increment must be used to finance the cost of correcting conditions that allow designation of renewal and renovation districts. Housing Districts Qualifications: Must be a facility intended for occupancy in part by persons or families of low and moderate income. Up to 20% of the fair market value of the improvements may be for uses other than low and moderate income housing. Term and Restrictions: May collect increment for twenty five years after the date of receipt of the first increment, subject to the same exception as for redevelopment districts, To maintain qualification as a housing district, residents' income must be limited. The rental income requirements apply for the life of the district. If the income requirements are violated, the district duration is reduced to that of an economic development district. Economic Development Districts Qualifications: The municipality must find that the district will (1) discourage business from moving to another state or municipality; (2) increase employment in the state; or (3) preserve and enhance the tax base of the state. Term and Restrictions: May collect increment for eight years after the date of receipt of the first increment. Increment may not be used to assist developments if more than 15% of the buildings and facilities (on a square footage basis) are used for a purpose other than: (a) manufacturing; (b) warehousing, storage and distribution of tangible personal property (excluding retail sales); (c) research and development related to the aforementioned activities; (d) telemarketing if that activity is the exclusive use of the property; (e) "tourism facilities;" (f) qualified border retail facilities; or (g) space necessary for and related to the above. Ehlers & Associates, Inc.. TIF Basics 3