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CHAPTER 13 - ECONOMIC DEVELOPMENT AND SPECIAL PROGRAMS old buildings with a new, larger building. In both of these instances, the market value of the property will rise because the improvements add value to the parcel. The "tax increment or increment" for the district is determined by multiplying the original tax rate by the captured retained net tax capacity. This roughly equals the taxes paid by the captured tax capacity or the increase in taxes that occur as a result of the development. Creation of the Development District and TIF District Development District Before a TIF District can be created, geographic areas for the Development District and the TIF District must be created. A Development District, also known as a project area, is an area within the corporate limits of a city which has been designated and separately numbered by the governing body. In many cases, Development Districts are defined as the geographic boundaries of the City and within a singular Development District, multiple TIF Districts may exist. But there are instances where there are separately numbered Development Districts that coincide with TIF Districts, A Development District must be created prior to the creation of the TIF District. Tax Increment Financing District The TIF District is defined as a contiguous or noncontiguous geographic area within a Development District, or project area, from which some or all of the properties, identified in the tax increment financing plan, will have tax increment generated from the captured retained net tax capacity. The tax increment financing plan should always include the legal descriptions of all the properties that are contained within the plan, along with a map delineating the boundaries. The County Auditor should pay close attention to both of these descriptions because there are cases where the two do not match and the County will need to contact the TIF Authority and require changes to one or both of these items until they match. Tax Increment Financing Plan A Tax Increment Financing Plan is a critical piece of information that gives the detail of an entire project and guides the activities that are to take place. All TIF projects must adhere to all requirements, expenditures, improvements or other objectives listed within the plan. Plans should contain the following information: A. Statement of objectives of an authority for improvement of a project B. Statement of property within development to occur for the project C. Required findings: 1. Type of district 2. Satisfaction of the 'but for' findings unless it is a housing district 3, TIF plan conformity to the municipality's plans for development or redevelopment as a whole 4. Selection of the fiscal disparities option D. List of property(s) the authority intends to acquire E. Identification of all parcels to be included in the district TAX INCREMENT FINANCING REVISION DATE: NOVEMBER, 2010 13.01 •5