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acquisition may be approved simply by resolution. Modifications will not trigger • <br /> application of current statutes unless the boundary of the TIF District is expanded. <br /> Note - County Commissioner notice: For housing and redevelopment districts, must <br /> notify the county commissioner who represents the area of the TIF District at least 30 <br /> days before the date of publication of the public hearing notice. <br /> Note - New "But for" test: Under a 1995 legislative change, the municipality must find <br /> that the increased market value of the site that could reasonably be expected to occur <br /> without the use of TIF (a hypothetical figure) would be less than the increase in market <br /> value estimated to result from the proposed development, after subtracting the present <br /> value of the projected tax increments for the maximum duration of the district permitted <br /> by the TIF Plan. This finding is not required for qualified housing districts (see Section <br /> IV). <br /> An example: if the development is estimated to add $500,000 in value, and the present <br /> value of the maximum stream of increment at an assumed discount rate is $300,000, the <br /> municipality must find that no other development would add more than $200,000 in <br /> market value at this site. • <br /> B. General Restrictions. • <br /> 1. In addition to the specific limitations for each type of TIF District, tax increment <br /> may be spent only for specified purposes permitted in the underlying development <br /> statutes. Because the development statutes are often ambiguous, whether a <br /> particular activity is TIF-eligible may depend on the facts in each case. <br /> 2. Administrative expenditures are limited to 10% of the expenditures authorized in <br /> the TIF Plan, or 10% of actual increment expenditures, whichever is less. They <br /> are defined to mean all expenditures of the authority other than land acquisition <br /> and relocation costs and costs "directly connected with the physical development <br /> of the real property in the district." Note: the County auditor may assess each <br /> TIF District for the county's cost of administering the district, and the fee may be <br /> paid from tax increment. <br /> 3. Increment may not be used to finance buildings that are used "primarily and <br /> regularly for conducting the business" of any unit of government, except for <br /> parking structures, a commons area used as a public park, or a facility used for <br /> social, recreational-or conference purposes. <br /> If a TIF-financed social, recreational or conference facility is operated by an entity <br /> other than the authority, the authority's governing body must approve operating • <br /> policies for the facility. This would apply, for example, when an HRA finances <br /> a city community center. <br /> w B100909 6 <br /> FIPM-2 <br />