PROGRAM: To facilitate the City's financing the construction of public improvements, fund acquisition costs and/or to defray the cost of the City being involved in a development project.
TYPE OF ASSISTANCE: Redirects payment of property taxes in the amount of the value of new improvements. Does not exempt public improvements from taxation. Rather, the taxes continue to be paid but are redirected to the City rather than the tradition disbursement among the City, County and Board of Education. [Note: In most cases, 25% of the incremental revenues are dedicated to the Schools and should be factored into any calculations about the amount of revenue available for public infrastructure.]
TYPICAL STRUCTURE: The TIF debt level should equal the amount of debt that could be supported by the incremental revenues from the payments in lieu of taxes. Generally, the assumptions used are 20-year level debt service, and prime rate less 25 basis points.
MAXIMUM AMOUNT: There is no maximum.
REPAYMENT: Based upon the terms/conditions of a negotiated Redevelopment Agreement between the City and a developer.
INCENTIVES: Abatement of taxes on improvements to real properties.
BENEFITS: Permits development activities to move forward by providing a reliable revenue stream for the repayment of the City's initial investment in land assembly and/or public improvements.
ELIGIBILITY: The land which is to be redeveloped must be acquired by the City with it's own funds and the City must retain title to the land. May include improvements constructed on a parcel of real property owned by the City Corporation and leased to others.
CRITERIA: Property must be owned by the City. Improvements must serve a public purpose.
ELIGIBLE/ INELIGIBLE USES: Projects involving improvements to private property are not eligible. Projects that do not serve a "public purpose" are not eligible.
EVALUATION: The Internal Finance Review Committee is to review each project. It is expected that the requesting Department will have requested, documented, reviewed, and formulated a recommendation based on the City's Investment Information Guidelines.
APPROVAL: Must be approved by City Council
PROGRAM EXAMPLES: Taft Broadcasting Corp., Atrium 1, Shillito Lofts, Westin Hotel
Contact: Ed Ratterman, Senior Development Officer
Phone: (513) 352-6258
Fax: (513) 352-6257
