TIF Approval Process
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 and blighted.
- 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.