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property with significantly higher than it previously was. The City will be reimbursed <br /> the money it invested through captured tax increment, in the end the development will <br /> come at little to no cost to the city once the repayment is created, and instead of having a <br /> piece of property providing tax revenue of$1 million it will have a property producing a <br /> tax revenue of$5 million. <br /> The theory behind TIF as explained is relatively simple; TIF in actual practice is <br /> extremely complicated and extremely closely monitored. TIF can only be used in <br /> specific situations and for specific reasons, with each instance having its own criteria. <br /> Entire 20 page papers can be written about single details of TIF laws, what is important <br /> here is the philosophy, and how it applies to the EDA of the City of Hugo. <br /> In the case of the Hugo EDA providing financial assistance through TIF would <br /> only happen with Council Consent, and would be provided for a project that would truly <br /> reshape the landscape of Hugo. For example the City may decide to assist a developer <br /> seeking to redevelop a portion of downtown Hugo. In the instance where substantial <br /> financial assistance is required the City would use TIF to allow the development to <br /> proceed. In such a case the revenue to be gained by the development would have to be <br /> great enough to justify assistance, and would truly be a landmark development in the <br /> City. Not all TIF deals are on the magnitude of New Brighton's, but they all must cover <br /> the cost of doing business. <br /> TIF is an extremely valuable tool for the EDA, in conjunction with the Hugo City <br /> Council, as it provides the EDA with the necessary tool to hit the proverbial homerun. <br /> TIF is the tool that is used when all others fail to foot the bill. <br />