The City shall require a deposit in the amount of $1,000 from the applicant for the City and its consultants to determine the feasibility of providing tax increment financing assistance to the applicant’s project. If the City incurs additional expense in excess of the $1,000 prior to the execution of the development agreement, the City will notify the applicant in writing and the applicant will be required to deposit additional funds.
If the TIF assistance application is approved and the applicant completes the project, the City shall reimburse the applicant’s deposit to the extent permissible under the TIF Act utilizing available tax increment dollars generated by the project.
If it is necessary to provide tax increment financing on a pay-as-you-go basis wherein the City compensates the applicant a predetermined amount for a predetermined number of years, the applicant will be required to pay a portion of the administrative costs associated with the record keeping requirements for the duration of the agreement according to the guidelines established within this ordinance.
If the City provides tax increment financing in the form of an up front payment to the applicant, the refund of the application deposit will be forfeited. If TIF assistance is provided utilizing both forms of financing then the return of the application deposit will be forfeited and the annual fee will be assessed according to the guidelines established within this ordinance.
The annual fee will be determined as follows:
Up to $100,000 in TIF assistance will require an application deposit of $1,000 and annual fee of $500 during the term of the redevelopment agreement when record keeping is required for rebate and/or other financial assistance based on sales tax and/or property tax records.
Over $100,000 and up to $1,000,000 in TIF assistance will require an application deposit of $1,000 and annual fee of one-half of one percent (.5%) of the total approved assistance amount during the term of the redevelopment agreement when record keeping is required for rebate and/or other financial assistance based on sales tax and/or property tax records.
Over $1,000,000 in TIF assistance will require an application deposit of $5,000 and an annual fee of one-quarter of one percent (.25%) of the total approved assistance amount or a maximum of $10,000 per annum during the term of the redevelopment agreement when record keeping is required for rebate and/or other financial assistance based on sales tax and/or property tax records.
Fees will be assessed at the beginning of each year for the duration of the redevelopment agreement. The first annual fee payment will be due upon the date of approval of the redevelopment agreement and every 12 months thereafter during the term of the agreement in order to cover a portion of the administrative costs involved with recording and reporting requirements related to the redevelopment agreement.
While tax increment financing (TIF) is an important and useful tool in attracting and retaining businesses, it is essential that it is used appropriately to accomplish the City’s economic development goals and objectives. The fundamental principle that makes tax increment financing viable is that it is designed to encourage development which would not otherwise occur. The City is responsible to assure that the project would not occur "but for" the assistance provided through tax increment financing.
It is the policy of the City to consider the judicious use of tax increment financing for those projects which demonstrate a substantial and significant public benefit by constructing public improvements in support of developments that will create new jobs, retain existing jobs, eliminate blight, strengthen the economic base of the City, increase property values and tax revenues, create economic stability, and stabilize and upgrade existing neighborhoods and areas. Priority will be given to projects that are judged to meet all of these goals.
The following criteria are to be used by the City to evaluate TIF applications: