2005.06.20 EDA Packet - Laserfiche WebLink

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Eligible TIF Expenditures Financing • Specified purposes permitted in the underlying Bond Financing development statutes for cities,HRAs,EDAs,and Port Bonds may be issued without election if at least 20%of debt Authorities, service is reasonably expected to be paid with increment. • Pay-As-You-Go Administrative expenditures are limited to 10%of the Financing Dev expenditures authorized in the TIF Plan or 10%of actual Develloper finnances TIF-eligible costs as they are incurred, increment expenditures,whichever is less. and authority promises to reimburse the developer from tax increment over time,if and when it is generated. • Increment may not be used to finance buildings that are Typically structured as a revenue note issued to the used"primarily and regularly for conducting the business"of any unit of government. developer,with an interest component to compensate the developer for costs of upfront financing. .. . Springsi_=C Adopting a TIF Plan Time Limit#1: 3 Year Rule • Notice to County Board and School District,at least 30 Within three years of certification,one of three things must days prior to City Council public hearing. occur for district to remain alive: • For redevelopment districts,the individual county commissioner representing the site must also receive a — Bonds are issued to aid the project, notice at least 30 days before the publication of the hearing — Authority acquires property within the district,or notice(40 days prior to public hearing). —Authority causes public improvements to be constructed • Published notice,10-30 days prior to public hearing. within the district. • Review by the Planning Commission. • Public hearing before City Council and EDA. • Request for Certification to County Auditor. Sprin0ste0 -. . Sprinasted Time Limit#2:4 Year Rule(Knock Down) Time Limit#3: 5 Year Rule • Increment will not be collected from a particular parcel For increment to be considered a spent expenditure within the TIF District,one of the following must occur within five unless,within four years of certification,demolition, � rehabilitation or renovation of property or other site years after certification of the district: improvements has occurred in accordance with TIF plan. —TI is paid to a 3rd party for a TIF eligible expenditure, — Bonds are sold to a 3rd party and proceeds expected to be spent within 5 years, • If a parcel is"knocked-down"and later improved,it can be — Binding contracts are entered into with a 3rd party for reinstated in the district,but at the market value at the time performance of an activity and increment is spent under the of reinstatement. contract,or — Costs are incurred by a"party"and revenues are spent to reimburse that party.