09-13-1995 Council Agenda - Laserfiche WebLink

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allow development activities to produce tax increment revenues. Without this step, approximately $1,000,000 in market value must be added to the District before any tax increment revenue appears. Creating a new TIF district also resets the clock for calculating the LGA/HACA loss from the District. The City will also be able to take advantage of the 1995 statutory change to choose between the LGA/HACA loss and a local match. This action presents some "negative" factors that must be considered: ► The current District was not subject to limitations on using developer contributions to offset LGA/HACA losses. This option will not be available in a new district. ► The maximum pooling amount (funds used outside of the TIF district boundaries) drops from 25% to 20 %. • Additional "but for" findings will be needed to create the new district. The findings must be supported by analysis that shows that the market value of the site attributable to development receiving TIF assistance would be less than the increase in market value estimated to result from the proposed LW development after subtracting the present value of the project tax increments for the maximum duration of the district. Taking these factors into account, the City would still be better served by re- establishing TIF District #3 -1. Actions: ► City Council adopts resolution decertifying the district and initiates the process for creating the new district. • Development District #3 remains in place, but amendments will be needed in conjunction with TIF changes. The most important change will be to expand the area within the Development District to include additional segments of Rice Street - Little Canada Road area. Financial Implications: The cost of the TIF planning actions should not exceed $3,000. Time Frame: This step should be taken as quickly as possible. The District must be in place prior to issuing any building permits for new development. These changes should also be completed prior to the next legislative session. The following table contains a schedule of events assuming that the City Council begins the process at its September 13th meeting. September 13 Council decertifies TIF District #3 -1 Implementation [Draft - September 1, 1995] Page 91 Page 4410