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Benefits and Costs Section E <br /> • <br /> City's Perspective <br /> A. Benefits <br /> • TIF allows City to realize new development which would <br /> not otherwise occur(the 'But For" test) without the use <br /> of TIF. <br /> • City can realize broader economic gains of new <br /> development in terms of employment, tax base <br /> enhancement and secondary spin-off effects. <br /> • City can facilitate the construction of related public <br /> improvements it wishes to achieve by coordinating a <br /> TIF project with more general public improvement <br /> projects. <br /> • City may have better control over the nature of the <br /> development. <br /> • City may be able to fund administrative and/or <br /> . community development costs with revenue from the <br /> T1F district. <br /> • In same cases the quality of new development is <br /> enhanced by TIF financing. <br /> • <br /> B. Costs <br /> • <br /> The City may assume the risk that property taxes might <br /> not •- •-•i -. <br /> funding of local governments might cause tax <br /> increments to fall short of scheduled debt service <br /> payments. City may pledge to use other funds/or <br /> • general property tax levies to pay debt service. <br /> (Development Agreement guarantees.) <br /> • City and other overlapping taxing jurisdictions (county, <br /> school district, etc.) must wait until TIF district is <br /> terminated until the new development is translated into <br /> the general tax base. <br /> • • Depending on magnitude and strategy for addressing <br /> fiscal disparities contribution on commercial properties, <br /> there can be internal shift in property tax burdens (for <br /> communities in the Twin Cities Metropolitan Area only). <br /> SPRINGSTEQ <br />