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08-22-1996
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08-22-1996
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MV EDC
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Date
8/22/1996
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• 7. Hazardous Waste Extension. <br /> The 1995 legislature added an alternative to hazardous substance subdistricts. An <br /> authority, with approval of the municipality, may extend the duration of any TIF <br /> district if: <br /> a. contamination is discovered after the district was established; <br /> b. the authority elects not to create a hazardous substance subdistrict; and <br /> c. the municipality pays for the cost of removal or remediation out of general <br /> revenues and not from tax increments. <br /> If those tests are met, the district may be extended for the lesser of (1) 10 years <br /> after the district would otherwise have terminated; or (2) the number of additional <br /> years necessary to collect increment equal to the cleanup costs paid by the <br /> municipality from non-tax increment funds. Cleanup costs are restricted to actual <br /> costs of removal and remediation, including testing and engineering but excluding <br /> financing or interest costs. Cleanup costs are also reduced by any reimbursements <br /> or amounts recovered from private parties or other responsible parties. <br /> This provision is available for any TIF District filed for certification after <br /> December 31, 1988. <br /> 8. Pre-1979 Districts. <br /> TIF Districts created prior to August 1, 1979 are not generally subject to the TIF <br /> Act, except when the proposed development extends beyond the "scope of <br /> activity" in the project plan after May 1, 1988. After April 1, 2001, increment <br /> from a pre-1979 increment may be used only to pay bonds that were outstanding <br /> as of April-1, 1990, but in no event may increment be collected after August 1, <br /> 2009. <br /> II. HOW INCREMENT MAY BE USED <br /> A. TIF Plan. The use of increment must be spelled out in a TIF Plan approved by the city <br /> council (or county board for a county HRA) after public hearing, with 30-day notice to <br /> the county and school district, 10 days' published notice, and review by the planning <br /> commission. TIF Plans describe the estimated tax increment projections,financing budget <br /> and maximum debt to be issued. When approving the TIF Plan, the council must find <br /> (among other things) that the proposed development would not reasonably be expected <br /> to occur solely through private investment in the reasonably foreseeable future (the "but <br /> 111 for" finding). <br /> TIF Plans may be modified using the same process as for approval of the initial plan. <br /> Generally, modifications that do not increase expenditures or debt or call for new land <br /> :EJB 100909 5 <br /> FIRM-' <br />
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