07-21-1994 - Laserfiche WebLink

Home Browse Search

facility or nonhomestead dwelling unit that, in each case, is intended to serve primarily • individuals from outside the county. C. Hazardous Substance Subdistricts Qualifications: Consists of parcels within a TIF District of any kind that are "designated hazardous substance sites" or are contiguous parcels that the authority expects to be developed together with the hazardous substance site. "Designated hazardous substance sites" are parcels for which there is a state-approved "development action response plan," and the authority has entered into an agreement providing for removal actions or otherwise certified that it will finance such removal. Term, restrictions: May collect increment from the subdistrict for up to 25 years after the date of receipt of the first subdistrict increment (which is, generally, the tax attributable to the "base value" of the parcel). This period overrides any shorter duration for the underlying TIF District, except that during the extended period, the increment may be used only to pay the cost of hazardous waste removal and related administrative costs. II. HOW INCREMENT MAY BE USED A. TIF Plan. The use of increment must be spelled out in a TIF Plan approved by the City Council (or County Board for a County HRA) after public hearing, with 30-day notice to the County and School District, 10 days' published notice, and review by the planning commission. TIF Plans describe the estimated tax increment projections, financing budget and maximum debt to be issued. When approving the TIF Plan, the Council or Board must find (among other things) that the proposed development would not reasonably be expected to occur solely through private investment in the reasonably foreseeable future (the "but for" finding). 1993 Change: For housing and redevelopment districts, must notify the county commissioner who represents the area of the TIF District at least 30 days before the date of publication of the public hearing notice. TIF Plans may be modified using the same process as for approval of the initial plan. Generally, modifications that do not increase expenditures or debt or call for new land acquisition may be approved simply by resolution. Note: modifications will not trigger application of current statutes unless the boundary of the TIF District is expanded. B. General Restrictions. 1. In addition to the specific limitations for each type of TIF District, tax increment may be spent only for specified purposes permitted in the underlying development statutes. Such purposes include, generally: land acquisition; site improvements; public and on-site utilities, demolition; relocation; and administration. If the authority owns a Project, increment may be-used to finance essentially any aspect of the Project. Because the development statutes are often ambiguous, whether a particular activity is TIF-eligible may depend on the facts in each case. 2. Administrative expenditures are limited to 10% of the expenditures authorized in the TIF Plan, or 10% of actual increment expenditures, whichever is less. They are defined to SJa64549 FIRM-2 -4-