After the City Council approves the recommendations of the Project Review Committee
, the project goes through the following process:
- Declaration of Substandard and Blight:
The City makes determination subsequent to a public hearing that the
project location is in an already substandard and blighted area, or
determines the site meets the statutory standards of being substandard
- Preparation of a Redevelopment Plan:
The City or developer will prepare a redevelopment plan for the
project. The plan has certain statutory requirements and will include
a definition of the Tax Increment Project Area. It will also contain
information about the use of TIF funds.
- Approval of the Redevelopment Plan: The Redevelopment Plan is then submitted to the Planning Commission for review and recommendation. Following Planning Commission action, the Plan is then submitted to the City Council
for its public hearing and approval. As a precedent to approving the
Plan, the City shall conduct a cost-benefit analysis for the project.
- Cost-Benefit Analysis:
The City or developer shall conduct a cost-benefit analysis for each
redevelopment project intending to use TIF assistance. The analysis
shall be developed using a statutory cost-benefit model and guidelines.
- Approval of the Redevelopment Agreement:
Following approval of the Redevelopment Plan, the City and the
Developer negotiate a Redevelopment Agreement. The Agreement sets
forth the mutual responsibilities of both parties and may include the
financial terms of the project. As part of the agreement process, the
Developer negotiates loan terms with a private lender unless the
project is utilizing a publicly-offered bond issue. The loan note is
then attached to the Redevelopment Agreement. The Redevelopment
Agreement then needs to be approved by the City Council.