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2021-Guidelines for the Community Development Law Guidelinesforthe Community DevelopmentLaw GuidelinesfortheCommunityDevelopmentLaw DISCLAIMER:Amunicipalitymustalwaysconsultstatutespriortoattemptingany redevelopmentprojectastheCommunityDevelopmentLawissubjecttochangebythe NebraskaLegislature.Municipalitiesarealsostronglyencouragedtoconsultwiththeircityor villageattorneyorhirealegalcounselspecializinginTIF.Thisdocumentisnotintendedto replacetheadviceofanattorney. CommunityDevelopmentAgencyorCommunityRedevelopmentAuthority: PowersandDuties Generally,thefirststepamunicipalitytakesbeforebeginningaTIFprojectisformingacommunity redevelopmentauthority(CRA),aLimitedCommunityRedevelopmentAuthority(LimitedCRA),ora communitydevelopmentagency(CDA).Whilethesemunicipaldivisionsprimarilycarryoutthesame functions,governanceofeachvaries. ThegoverningbodyofamunicipalitymustcreateaCDAbyordinance.TheCDAcanbeastandalone agencyorintegratedintoanexistingmunicipaldivision(usuallytheCityCouncilorVillageBoardof Trustees).Whileultimateapprovalofaredevelopmentplanvestsinthegoverningbody,astandalone CDAfunctionsasthegatekeeperforredevelopmentprojects.Typically,acityorvillagewillwishtoform astandaloneCDAifthereisanabundanceofredevelopmentactivitytoavoidoverloadingthe governingbody.Ifthereisnotanabundanceofredevelopment,mostmunicipalitiesenablethe governingbodytoactastheCDA.CDAscanmeetregularlyorasneeded,dependingonthevolumeof redevelopmentactivity.TheessentialfunctionsoftheCDA(bothstandaloneandintegrated)include: submissionofredevelopmentplanstotheplanningcommission,recommendationofredevelopment planstothegoverningbody,preparationofcostbenefitanalyses,preparationandadoptionof redevelopmentagreements,issuanceofTIFbonds/notes,recordkeepingandadministrationrequired undertheCommunityDevelopmentLaw,andpolicingoftheredeveloper'sadherencetothe redevelopmentplanandagreement. ThegoverningbodyofamunicipalityalsocreatesaCRAoraLimitedCRAbyordinance.Bothentities maintainthesameessentialfunctionsandpowersasaCDA.UponformingaCRAorLimitedCRAvia ordinance,thegoverningbodyofacityorvillageappoints5to7individualstoserveontheCRAfor termsofupto5years(staggeredatinitialcreation).ACRAexistsinperpetuity.Incontrast,citiesand villagesformaLimitedCRAtocarryoutasingleredevelopmentproject.Aftercompletionofthe redevelopmentproject,theLimitedCRAceasestoexist. WhilemostcitiesandvillagesformaCDAorCRAtocarryoutredevelopmentprojects,theCommunity DevelopmentLawgrantsthegoverningbodyofcitiesandvillageswithinherentpowerandauthorityto carryoutcommunitydevelopmentactivitiesaswell.Accordingly,whilerare,acityorvillagemay undertakeredevelopmentprojectsabsentthecreationofaCDAorCRA,ormorecommonly,acity councilorvillageboardwillactastheCDAorCRAinaseamlessway. ACRA(fortheremainderofthismanual,theuseofthetermCRAwillalsoincludeaCDA)isrequiredto keepanaccurateaccountofallitsactivitiesandofallreceiptsanddisbursementsandmakeanannual reportofsuchactivities,receipts,anddisbursementstothegoverningbodyofthemunicipality.All income,revenue,profits,andotherfundsreceivedbyaCRAarerequiredtobedepositedwiththecity orvillagetreasurerasexofficiotreasureroftheCRAwithoutcomminglingthemoneywithanyother money. TheCommunityDevelopmentLawauthorizesaCRAtolevyapropertytax.TheCRAmustplacethe proceedsfromsuchtaxinaspecialaccount,whichtheCRAcanusetodefrayanyexpensesof redevelopmentplansandprojects.ACRAisrequiredtocertifyonorbeforeSeptember30ofeachyear tothegoverningbodyofthemunicipalitytheamountoftaxtobeleviedforthesucceedingfiscalyear forcommunityredevelopmentpurposes,nottoexceedtwoandsixtenthscentsoneachonehundred dollarsuponthetaxablevalueofthetaxablepropertyinsuchcity. RedevelopmentPlan GeneralPlan AmunicipalitymusthaveageneralplanforthedevelopmentofthecityorvillagebeforeaCRAcan recommendaredevelopmentplantothegoverningbody.Thecomprehensiveplanisusuallythe generalplanforthedevelopmentofthecityorvillage. SubstandardandBlightedDeclaration Onceacomprehensiveplanisinplace,amunicipalitymaydesignateareasassubstandardandblighted andinneedofredevelopment.Thefirststepindeclaringanareatobesubstandardandblightedisto havethegoverningbodyofamunicipalityconductastudyoranalysisonwhethertheareais substandardandblighted.Ifthestudy(andultimatedesignationofasubstandardandblightedarea) comesattherequestofaredeveloperforaredevelopmentproject,themunicipalitymaydelegatethe dutyandcostofobtainingthestudytotheredeveloper. Afterobtainingastudy,agoverningbodyofacityorvillagesubmitsthequestionofwhetheranareais substandardandblightedtotheplanningcommissionorboardofthemunicipalityforitsreviewand recommendationpriortothegoverningbodyofthemunicipalitymakingthedeclarationofwhetheran areaissubstandardandblighted.Theplanningcommissionorboardisrequiredtoholdapublichearing andgivenotice.Noticeisgivenbypublicationatleastonceaweekfor2consecutiveweeksinalegal newspaperofgeneralcirculation.Thetimeofthehearingneedstobeatleast10daysfromthelast publication.Thenoticeneedstoincludeamapshowingtheareatobedeclaredsubstandardand blightedorcontaininformationonwheretofindthemap.Noticealsoneedstoincludeinformationon wheretofindacopyofthesubstandardandblightedstudy.Inadditiontopublishednotice,the municipalitymustmailthenoticeatleast10dayspriortothepublichearingtoallneighborhood associationswithinaonemileradiusoftheproposedsubstandardandblightedareaandalltaxing entitieswithjurisdictionwithinthearea. Theplanningcommissionorboardsubmitsitswrittenrecommendationstothegoverningbodyofthe municipalitywithin30daysafterthepublichearing.Uponreceiptoftherecommendationsorafter30 daysifnorecommendationsarereceived,thegoverningbodyofthemunicipalityholdsapublichearing aftergivingnotice.Noticeisgivenbypublicationatleastonceaweekfor2consecutiveweeksinalegal newspaperofgeneralcirculation.Thetimeofthehearingneedstobeatleast10daysfromthelast publication.Thenoticeneedstoincludeamapshowingtheareatobedeclaredsubstandardand blightedorinformationonwheretofindthemap.Noticealsoneedstoincludeinformationonwhereto findacopyofthesubstandardandblightedstudy.Inadditiontopublishednotice,themunicipality mustgivenoticeatleast10dayspriortothepublichearingtoallneighborhoodassociationswithina onemileradiusoftheproposedsubstandardandblightedareaandalltaxingentitieswithjurisdiction withinthearea. Copiesofthesubstandardandblightedstudymustbepostedonthecity'sorǝźƌƌğŭĻ͸ƭwebsiteormade availableatalocationdesignedbythecityorvillage. Afterthepublichearing,thegoverningbodymakesitsdeclarationifitfindsthepropertyisboth substandardandblightedbyadoptionofaresolution.Theresolutionshouldincludeadeclarationthat theareaisaͻƭǒĬƭƷğƓķğƩķandblightedareainneedofƩĻķĻǝĻƌƚƦƒĻƓƷ͵ͼ Thearearetainsthedesignationofsubstandardand blighteduntilthegoverningbodymakesa declarationthatitisnolongersubstandardandblighted.Thereisnostatutoryprocesstoremovethe substandardandblightdesignation,butsomemunicipalitieshavedoneit.Theremovalofthe designationisdonebyaresolutionofthegoverningbody.Itisimportanttonotremovethe substandardandblightdesignationforpropertysubjecttoanactiveTIFproject,asthatmayendthe legalabilitytodividetaxestopaytheTIFdebt. TheLegislaturehassetlimitsontheamountamunicipalitycandesignateasblighted.Acityofthe metropolitan,primary,orfirstclasscannotdesignatemorethan35%ofthecityasblighted,acityofthe secondclasscannotdesignateanarealargerthan50%ofthecityasblighted,andavillagecannot designateanarealargerthan100%ofthevillageasblighted.Areasinaformerdefensesiteandany areadeclaredtobeextremelyblightedshallnotcounttowardsthesepercentagelimitations. ACRAcannotpreparearedevelopmentplanforaredevelopmentprojectarea,andthecitycouncilor villageboardcannotapprovearedevelopmentplan,untilthereisasubstandardandblighted declarationforthatarea.Additionally,theCRAcannotdividetaxesforaredevelopmentprojectunless thepropertyisinsidethecorporatelimitsofamunicipality,exceptforformerdefensesites. In CźƷǩƉĻǝ͵/źƷǤƚŅIğƭƷźƓŭƭͲ 255Neb.46,58(1998),theNebraskaSupremeCourtdeterminedthe substandardandblighteddesignationappliestoareasratherthanindividualpropertiesandrefusedto invalidateblightdeterminationsmerelybecausesingleparcelswithintheareawouldnotbeconsidered blightedifviewedinisolation. (ExampleofasubstandardandblightedstudyisprovidedintheAppendix) ExtremelyBlightedDeclaration Foranyredevelopmentplanforwhichmorethan50%ofapropertyintheredevelopment projectareahasbeendeclaredextremelyblighted,advaloremtaxesmaybedividedfora periodnottoexceed20years. Extremelyblightedareameansasubstandardandblightedareainwhich:(a)Theaveragerateof unemploymentintheareaduringtheperiodcoveredbythemostrecentfederaldecennialcensusor AmericanCommunitySurvey5YearEstimateisatleast200%oftheaveragerateofunemploymentin thestateduringthesameperiod;and(b)theaveragepovertyrateintheareaexceeds20%forthetotal federalcensustractortractsorfederalcensusblockgrouporblockgroupsinthearea. Foranymunicipalitythatintendstodeclareanareaasextremelyblighted,thegoverningbodyofacity orvillageisrequiredtoconductastudyoranalysisonwhethertheareaisextremelyblighted. Afterobtainingastudy,agoverningbodyofacityorvillagesubmitsthequestionofwhetheranareais extremelyblightedtotheplanningcommissionorboardofthemunicipalityforitsreviewand recommendationpriortothegoverningbodyofthemunicipalitymakingthedeclarationofwhetheran areaisextremelyblighted.Theplanningcommissionorboardisrequiredtoholdapublichearingand givenotice.Noticeisgivenbypublicationatleastonceaweekfor2consecutiveweeksinalegal newspaperofgeneralcirculation.Thetimeofthehearingneedstobeatleast10daysfromthelast publication.Thenoticeneedstoincludeamapshowingtheareatobedeclaredextremelyblightedor containinformationonwheretofindthemap.Noticealsoneedstoincludeinformationonwhereto findacopyoftheextremelyblightedstudy.Inadditiontopublishednotice,themunicipalitymustgive noticeatleast10dayspriortothepublichearingtoallneighborhoodassociationswithinaonemile radiusoftheproposedextremelyblightedareaandalltaxingentitieswithjurisdictionwithinthearea. Theplanningcommissionorboardsubmitsitswrittenrecommendationstothegoverningbodyofthe municipalitywithin30daysafterthepublichearing.Uponreceiptoftherecommendationsorafter30 daysifnorecommendationsarereceived,thegoverningbodyofthemunicipalityholdsapublichearing aftergivingnotice.Noticeisgivenbypublicationatleastonceaweekfor2consecutiveweeksinalegal newspaperofgeneralcirculation.Thetimeofthehearingneedstobeatleast10daysfromthelast publication.Thenoticeneedstoincludeamapshowingtheareatobedeclaredextremelyblightedor informationonwheretofindthemap.Noticealsoneedstoincludeinformationonwheretofindacopy oftheextremelyblightedstudy.Inadditiontopublishednotice,themunicipalitymustgivenoticeat least10dayspriortothepublichearingtoallneighborhoodassociationswithinaonemileradiusofthe proposedextremelyblightedareaandalltaxingentitieswithjurisdictionwithinthearea. Copiesoftheextremelyblightedstudymustbepostedonthecity'sorǝźƌƌğŭĻ͸ƭwebsiteormade availableatalocationdesignedbythecityorvillage. Afterthepublichearing,thegoverningbodymakesitsdeclarationifitfindsthepropertyisextremely blightedbyadoptionofaresolution.Theresolutionshouldincludeadeclarationthattheareaisan ͻĻǣƷƩĻƒĻƌǤblightedğƩĻğ͵ͼ Theextremelyblightedstudymaybeconductedinconjunctionwiththesubstandardandblightedstudy andtheextremelyblightedhearingsmaybeheldinconjunctionwiththesubstandardandblighted hearings. PreparingandContentsoftheRedevelopmentPlan ACRAmayprepare,orcausetobeprepared,aredevelopmentplan.Also,anypersonoragency,public orprivate,maysubmitaredevelopmentplantoaCRA.Often,aprivateredeveloperwillprepareand submitaredevelopmentplantoaCRA. Aredevelopmentplanmustbesufficientlycompletetooutlinelocalobjectivessuchasappropriateland uses,improvedtraffic,publictransportation,publicutilities,recreationalandcommunityfacilitiesand otherpublicimprovements,andtheproposedlandusesandbuildingrequirementsinthe redevelopmentprojectarea. Theredevelopmentplanmustalsoinclude,butnotbelimitedto,thefollowing: (a)Theboundariesoftheredevelopmentprojectarea,withamapshowingtheexistingusesand conditionoftherealproperty.ThisinformationshouldprovidesufficientdetailfortheCRAto determinetheexistingconditionsintheareaandpotentialbenefitsoftheproject. (b)Alanduseplanshowingproposedusesofthearea.Liketheboundarymaps,thelanduseplan enablestheCRAtounderstandhowtheredevelopment fitswithinthegeneralplanandhowthe redevelopmentplanmayprovidefortheredevelopmentofsubstandardandblightedareas. (c)Informationshowingthestandardsofpopulationdensities,landcoverage,andbuildingintensitiesin theareaafterredevelopment.Itmaybeappropriateforamunicipalitytoreevaluateitsgeneralplanin lightofaproposedprojecttoensureitiscurrent.Aredevelopmentplanmayincludemultipleprojects andphasesassociatedwithasingleplanforredevelopment.Insuchacase,theredevelopmentplan needstoincludeasufficientlevelofdetailregardingeachprojectorphasetoallowamunicipalityand CRAtomakeaninformeddecisionregardingtheredevelopmentplan.However,ifinformationforlater phasesistentativeorunavailable,theCRAmayamendtheredevelopmentplaninthefuture. (d)Astatementoftheproposedchanges,ifany,inzoningordinancesormaps,streetlayouts,street levelsorgrades,orbuildingcodesandordinances.Likeotherinformationthatisrequiredtobe considered,thisinformationdemonstrateswhethertheprojectisviablewithrespecttopublic infrastructureandcurrentzoninglaws. (e)Asiteplanofthearea. (f)Astatementregardingthekindandnumberofadditionalpublicfacilitiesorutilitieswhichwillbe requiredtosupportthenewlandusesintheareaafterredevelopment. Insummary,thebasicrequirementsofaredevelopmentplaninclude: 1.Agoverningbodyadoptingageneralplanforredevelopment. 2.Theredevelopmentplanclearlyoutliningtherelationshipbetweenitsobjectivesandthelocal objectives. 3.Theredevelopmentplanincludingmapsoftheprojectareathatshowtheexistingusesandcondition oftheproperty;alanduseplanshowingtheproposedusesofthearea;informationdetailingthe projectedpopulationdensities,landcoverage,andbuildingintensitiesintheareaafterredevelopment; astatementoftheproposedchangesinzoningordinancesormaps,streetlayouts,streetgrades,or buildingcodes;asiteplanofthearea;andastatementregardingtheadditionalpublicfacilitiesor utilitiesrequired. CRASubmitsPlantoPlanningCommission ACRAsubmitstheproposedredevelopmentplantotheplanningcommissionorboardofthe municipalityforreviewandrecommendationsastoitsconformitywiththegeneralplanofthe municipality. Theplanningboardorplanningcommissionofthecityorvillageisrequiredtoconductapublichearing ontheredevelopmentplanorsubstantialmodificationoftheplanaftergivingnotice.Noticeisgivenby publicationatleastonceaweekfor2consecutiveweeksinalegalnewspaperofgeneralcirculation. Thetimeofthehearingneedstobeatleast10daysfromthelastpublication.Thenoticeneedsto includeamaptoshowtheareatoberedevelopedorinformationonwheretofindthemap.Thenotice needstoalsoincludeinformationonwheretofindcopiesofthecostbenefitanalysisconducted.In additiontopublishednotice,themunicipalitymustmailthenoticeatleast10dayspriortothepublic hearingtoallneighborhoodassociationswithinaonemileradiusoftheproposedredevelopmentarea andalltaxingentitieswithjurisdictionwithinthearea. Theplanningcommissionorboardsubmitsitswrittenrecommendationsontheproposed redevelopmentplantotheCRAwithin30daysafterreceiptoftheplanforreview. CRAConsidersPlan AfteraCRAreceivestherecommendationsoftheplanningcommissionorboardor,ifno recommendationsarereceivedwithin30days,thenwithoutsuchrecommendations,aCRAmay recommendtheredevelopmentplantothegoverningbodyofthemunicipalityforapprovalafterit considerstheplan.TheCRAalsohastheoptionofnotrecommendingtheplanorrequesting modifications. TheCRAconsiderswhethertheredevelopmentplanisdesignedwiththegeneralpurposeof accomplishing,inconformancewiththegeneralplan,acoordinatedandharmoniousdevelopmentof themunicipality. FactorsfortheCRAtoconsiderincludewhethertheplanpromotesͻŷĻğƌƷŷͲsafety,morals,order, convenience,prosperity,andthegeneralwelfare,aswellasefficiencyandeconomyintheprocessof development,including,amongotherthings,adequateprovisionfortraffic,vehicularparking,the promotionofsafetyfromfire,panic,andotherdangers,adequateprovisionforlightandair,the promotionofthehealthfulandconvenientdistributionofpopulation,theprovisionofadequate transportation,water,sewerage,andotherpublicutilities,schools,parks,recreationalandcommunity facilities,andotherpublicrequirements,thepromotionofsounddesignandarrangement,thewiseand efficientexpenditureofpublicfunds,andthepreventionoftherecurrenceofinsanitaryorunsafe dwellingaccommodationsorconditionsofĬƌźŭŷƷ͵ͼItisbestpracticeforaCRAtodocumentthese determinationsinwritingviaaresolution. (ExamplesofredevelopmentplansareincludedintheAppendix) CostbenefitAnalysis ACRAconductsacostbenefitanalysisforeachproposedredevelopmentprojectthatrequestsadivision oftaxes(TIF).Forverylargeorcomplexredevelopmentprojects,theCRAmaydecidetohireathird partytoconductsuchananalysis. ACRAisrequiredtouseacostbenefitmodeldevelopedforusebylocalprojects.Acostbenefitmodel usedmustconsiderandanalyzethefollowingfactors: (a)Taxshiftsresultingfromtheapprovalofthedivisionoftaxes; (b)Publicinfrastructureandcommunitypublicserviceneedsimpactsandlocaltaximpacts arisingfromtheapprovaloftheredevelopmentproject; (c)Impactsonemployersandemployeesoffirmslocatingorexpandingwithintheboundariesof theareaoftheredevelopmentproject; (d)Impactsonotheremployersandemployeeswithinthecityorvillageandtheimmediatearea thatarelocatedoutsideoftheboundariesoftheareaoftheredevelopmentproject; (e)Impactsonthestudentpopulationsofschooldistrictswithinthecityorvillage;and (f)Anyotherimpactsdeterminedbytheauthoritytoberelevanttotheconsiderationofcosts andbenefitsarisingfromtheredevelopmentproject. CopiesofthecostbenefitanalysisarerequiredtobepostedontheƒǒƓźĭźƦğƌźƷǤ͸ƭwebsiteor madeavailableforpublicinspectionatalocationdesignatedbythemunicipality. IfaCRAamendsaredevelopmentplan,theCRAshoulddeterminewhetheranychangesneedto bemadetothecostbenefitanalysis. (ExampleofacostbenefitanalysisisprovidedintheAppendix) RecommendingPlantoGoverningBody ACRAneedstoincludewiththerecommendationofaredevelopmentplantothegoverningbodythe followinginformation: (a) therecommendations,ifany,oftheplanningcommissionorboardconcerningthe redevelopmentplan; (b) astatementoftheproposedmethodandestimatedcostoftheacquisitionandpreparationfor redevelopmentoftheredevelopmentprojectareaandtheestimatedproceedsorrevenuefrom itsdisposaltoredevelopers; (c) astatementoftheproposedmethodoffinancingtheredevelopmentproject;and (d) astatementofafeasiblemethodproposedfortherelocationoffamiliestobedisplacedfrom theredevelopmentprojectarea. ItisbestpracticeforaCRAtodocumentthesedeterminationsinwritingviaaresolution. DutiesoftheGoverningBody Aftertheplanningcommissionorboardholdsitspublichearings,thegoverningbodyofthemunicipality mustholdapublichearingonanyredevelopmentplanorsubstantialmodificationrecommendedbythe CRAafternotice.Noticeisgivenbypublicationatleastonceaweekfor2consecutiveweeksinalegal newspaperofgeneralcirculation.Thetimeofthehearingneedstobeatleast10daysfromthelast publication.Thenoticealsoneedstoincludeamapofsufficientsizetoshowtheareatoberedeveloped orinformationonwheretofindthemap.Finally,thenoticealsoneedstoprovideinformationonwhere tofindcopiesofthecostbenefitanalysis.Inadditiontopublishednotice,themunicipalitymustmail thenoticeatleast10dayspriortothepublichearingtoallneighborhoodassociationswithinaonemile radiusoftheproposedredevelopmentareaandalltaxingentitieswithjurisdictionwithinthearea. RequirementsofPublicNoticeforSubstandardandBlighted,ExtremelyBlighted,and RedevelopmentPlanHearings Noticemustbegivenbypublicationinalegalnewspaperatleastonceaweekfor2consecutive weeks. Themunicipalitymustgivenoticeatleast10dayspriortothepublichearingtoallneighborhood associationswithinaonemileradiusoftheproposedblightedandsubstandardareaor redevelopmentareaandalltaxingentitieswithjurisdictionwithinthearea. Timeofthehearingmustbeatleast10daysfromthelastpublication. Thenoticemustdescribethetime,date,place,andpurposeofthehearing. Interestedpartiesmustbegiventheopportunitytoexpresstheirviewsontheplanatthepublic hearing. NoticetoNeighborhoodAssociations: Atleast10dayspriortothepublichearing,thegoverningbodyofthemunicipalitymustprovidenotice ofthehearingtoeachregisteredneighborhoodassociationwhoseareaofrepresentationislocatedin wholeorinpartwithinaonemileradiusoftheareatobedeclaredsubstandardandblighted,extremely blighted,orredevelopedinthemannerrequestedbytheassociation. Eachneighborhoodassociationwantingtoreceivenoticeofanyhearingisrequiredtoregisterwiththe ƒǒƓźĭźƦğƌźƷǤ͸ƭplanningdepartmentor,ifthereisnoplanningdepartment,withthemunicipalclerk,and includethefollowinginformation:adescriptionoftheareaofrepresentationoftheassociation,the nameofandcontactinformationfortheindividualdesignatedbytheassociationtoreceivethenotice onitsbehalf,andtherequestedmannerofservice,whetherbyemail,firstclassmailorcertifiedmail. NoticetoPoliticalSubdivisions: Atleast10dayspriortothepublichearing,thegoverningbodyofthecityorvillagemustprovidenotice ofthehearingbycertifiedmail,returnreceiptrequested,tothepresidentorchairpersonofthe governingbodyofeachcounty,schooldistrict,communitycollege,educationalserviceunit,andnatural resourcesdistrictinwhichtherealpropertytobedeclaredsubstandardandblighted,extremely blighted,orsubjecttotheredevelopmentplanormajormodificationislocated. Agoverningbodyisencouragedtomaintainarecordofthenoticessenttoeachregistered neighborhoodassociationandaffectedpoliticalsubdivisions.Amunicipalitymaystructurethe registrationprocessforaneighborhoodassociationinaccordancewithrulesandregulationsadoptedby themunicipality.Theregistrationprocessmaydeterminethemannerofservice,whetherbyemailorby regular,certified,orregisteredmail. (Examplesofnoticestoneighborhoodassociationsandpoliticalsubdivisionsareincludedin theAppendix) ModifyingaRedevelopmentPlan ACRAmaymodifyaredevelopmentplanatanytime.However,anysubstantialmodificationtoa redevelopmentplanmustbeapprovedbythegoverningbody.TheCommunityDevelopmentLaw definessubstantialmodificationasachangetoaredevelopmentplanthat(a)materiallyaltersor reducesexistingareasorstructuresotherwiseavailableforpublicuseoraccess,(b)substantiallyalters theuseofthecommunityredevelopmentareaascontemplatedintheredevelopmentplan,or(c) increasestheamountofadvaloremtaxespledgedbymorethan5%,iftheamountofsuchtaxesis includedintheredevelopmentplan. Intheeventhousingunitsareeliminatedbyaredevelopmentproject,theredevelopmentplanneedsto includeplansforequivalentreplacementhousingelsewhereinthecommunity.Theplanshouldalso provideforrelocationofbusinessesoccupyingpremisestobeacquiredfortheprojectpursuanttothe RelocationAssistanceAct. ApprovingtheRedevelopmentPlan Whenthegoverningbodyapprovestheredevelopmentplan(oramendment)itmustmakespecific, writtenfindings.Agoverningbodymayapprovearedevelopmentplanafterthepublichearingif: (a)itfindsthattheplanisfeasibleandinconformitywiththegeneralplanforthedevelopment ofthemunicipalityandtheplanisinconformitywiththelegislativedeclarationsanddeterminations; and (b)itfindsthat,iftheplanusestaxincrementfinancing(TIF): (i)theredevelopmentprojectintheplanwouldnotbeeconomicallyfeasiblewithouttheuseof TIF, (ii)theredevelopmentprojectwouldnotoccurinthecommunityredevelopmentareawithout theuseofTIF(thebutfortest),and (iii)thecostsandbenefitsoftheredevelopmentproject,includingcostsandbenefitstoother affectedpoliticalsubdivisions,theeconomyofthecommunity,andthedemandforpublicandprivate serviceshavebeenanalyzedbythegoverningbodyandhavebeenfoundtobeinthelongtermbest interestofthecommunityimpactedbytheredevelopmentproject. Thebutfortestoutlinedabovemustbeinwriting. Aredevelopmentplanwhichhasnotbeenapprovedbythegoverningbodywhenrecommendedbythe CRAmayagainberecommendedtoitwithanymodificationsdeemedadvisable.Withexpedited review(microTIF),theredevelopermaysubmitanewredevelopmentplantothegoverningbodywith modifications. ACRAisnotallowedtoacquirerealpropertyforaredevelopmentprojectunlessthegoverningbodyof thecityinwhichtheredevelopmentprojectareaislocatedhasapprovedtheredevelopmentplan. (ExamplesofdocumentationfortheͻĬǒƷŅƚƩͼtestareincludedinAppendix) SafeHarborListofEligibleTIFExpenses Thefollowingisanonexclusivelistofexpensesthatmaybepaidforwithtaxincrementfinancing(TIF): 1.Acquisitionandsitepreparationofredevelopmentsitesincludingdemolition,grading,special foundations,environmentalremediationandrelatedworkpriortoconstructionoftheproject. 2.Publicimprovementsassociatedwitharedevelopmentproject,includingthedesignandconstruction ofpublicstreets,utilities,parks,andpublicparking,andenhancementstostructuresthatexceed minimumbuildingstandardstopreventtherecurrenceofsubstandardandblightedconditions. 3.Repairorrehabilitationofstructureswithintheredevelopmentprojectarea. 4.Architecturalandengineeringservicefeesrelatedtotheproject,aswellastheƒǒƓźĭźƦğƌźƷǤ͸ƭ ğƷƷƚƩƓĻǤ͸ƭfees. DistrictWideTIF Whilemostredevelopmentprojectsinvolveindividualparcelsofrealestateandimprovementslocated thereon,somecommunitiesemploydistrictwideTIFprojects.DistrictwideTIFprojectsidentify redevelopmentareasanddividethetaxesonallpropertieswithintheareatofundpublicimprovements therein.Assuch,districtwideTIFutilizesthenaturalincreasesinpropertytaxes(togetherwiththe increasesduetoredevelopmentinthearea)tomakeexpansiveimprovementsthroughoutalarger redevelopmentarea.Ifthereareexistingorplanned(individual)redevelopmentprojectsinthe redevelopmentarea,itmaybeimportantforthemunicipalitytoexcludethoseparcelsfromthedistrict wideTIFprojecttoavoiddilutingthetaxincrementforsuchprojects. OPTIONAL:ConstructionofWorkforceHousing Inaruralcommunityoranextremelyblightedareawithinamunicipality,constructionofworkforce housingmaybepartofaredevelopmentproject. Ruralcommunitymeansanymunicipalityinacountywithapopulationoffewerthan100,000 inhabitants(everycountyexceptDouglas,Lancaster,andSarpy). Extremelyblightedareameansasubstandardandblightedareainwhich:(a)Theaveragerateof unemploymentintheareaduringtheperiodcoveredbythemostrecentfederaldecennialcensusor AmericanCommunitySurvey5YearEstimateisatleast200%oftheaveragerateofunemploymentin thestateduringthesameperiod;and(b)theaveragepovertyrateintheareaexceeds20%forthetotal federalcensustractortractsorfederalcensusblockgrouporblockgroupsinthearea. Foranymunicipalitythatintendstodeclareanareaasextremelyblighted,thegoverningbodyofacity orvillageisrequiredtoconductastudyoranalysisonwhethertheareaisextremelyblighted.{ĻĻ 9ǣƷƩĻƒĻƌǤ.ƌźŭŷƷĻķ5ĻĭƌğƩğƷźƚƓƭĻĭƷźƚƓŅƚƩƒƚƩĻķĻƷğźƌƭ͵ Theextremelyblightedstudymaybeconductedinconjunctionwiththesubstandardandblightedstudy andtheextremelyblightedhearingsmaybeheldinconjunctionwiththesubstandardandblighted hearings. Again,źƷ͸ƭimportanttorememberthatonlymunicipalitiesincountieswithapopulationgreaterthan 100,000needtogothroughtheprocessofdeclaringanareatobeextremelyblightedtodoworkforce housingusingTIF.ForeveryothermunicipalitywantingtouseTIFforworkforcehousing,declaringan areaextremelyblightedisnotrequired. Priortoapprovingaredevelopmentprojectthatexpresslycarriesouttheconstructionofworkforce housing,agoverningbodyneedstodothefollowing: (1)receiveahousingstudywhichiscurrentwithin24months, (2)prepareanincentiveplanforconstructionofhousinginthemunicipalitytargetedtohouseexisting ornewworkers, (3)holdapublichearingontheincentiveplanwiththesamenoticeasrequiredforpublichearingson substandardandblighteddeclarationsorredevelopmentplans,and (4)afterthepublichearingfindthattheincentiveplan: a)isnecessarytopreventthespreadofblightandsubstandardconditionswithinthemunicipality; b)willpromoteadditionalsafeandsuitablehousingforindividualsandfamiliesemployedinthe municipality;and c)willnotresultintheunjustenrichmentofanyindividualorcompany. Anincentiveplanisaflexibledocumentthatembodiesthemunicipality'svisionandguidelinesfor workforcehousinginthecommunity.Theincentiveplanshouldidentifytheareasinwhichworkforce housingprojectsmayoccuranddetailanyspecificgoalsorspecificationsthataredevelopermust achievetotakeadvantageofworkforcehousingTIF.Whileitstermscanbeflexibleandspecifically suitedtotheindividualmunicipality'sneeds,everyincentiveplanshouldprovidethattheincentiveplan isnecessarytopreventthespreadofblightandsubstandardconditionswithinthemunicipality,will promoteadditionalsafeandsuitablehousingforindividualsandfamiliesemployedinthemunicipality, andwillnotresultinunjustenrichmentofanyindividualorcompany.Thepublichearingrequiredon theincentiveplanneedstobeseparatefromthepublichearingthatisrequiredtobeheldtoapprovea redevelopmentplanorsubstantialmodification. OPTIONAL:EnhancedEmploymentArea(EEA) Enhancedemploymentareas(EEAs)canbeutilizedaspartofaredevelopmentplanbutcanalsobeused inareasnotdesignatedassubstandardandblighted.ThetwotypesofEEAsareseparateanddistinct fromeachotheranddifferentstatutescontroldependingonwhichoneisbeingutilized,includingthe authoritytolevytheoccupationtaxandissuebonds.TheintentoftheLegislaturewastodesignatea separatescopeofcostsandexpensesthatmaybepaidforthroughtheoccupationtaxdependingon whethertheprojectiswithinacommunityredevelopmentareaoroutsideacommunityredevelopment area. AsPartofaRedevelopmentPlan Iftheredevelopmentplanincludesthedesignationofanenhancedemploymentarea,thegoverning bodymustfind,beforeitapprovessuchplan,thatanynewinvestmentwillresultinacertainamountof investmentandnewemployeesbasedonpopulationofthecounty. Specifically,thegoverningbodymayapprovetheredevelopmentplanifitdeterminesthatanynew investmentwithintheEEAwillresultinatleast(a)twonewemployeesandnewinvestmentofone hundredtwentyfivethousanddollarsincountieswithfewerthanfifteenthousandinhabitants,(b)five newemployeesandnewinvestmentoftwohundredfiftythousanddollarsincountieswithatleast fifteenthousandinhabitantsbutfewerthantwentyfivethousandinhabitants,(c)tennewemployees andnewinvestmentoffivehundredthousanddollarsincountieswithatleasttwentyfivethousand inhabitantsbutfewerthanfiftythousandinhabitants,(d)fifteennewemployeesandnewinvestmentof onemilliondollarsincountieswithatleastfiftythousandinhabitantsbutfewerthanonehundred thousandinhabitants,(e)twentynewemployeesandnewinvestmentofonemillionfivehundred thousanddollarsincountieswithatleastonehundredthousandinhabitantsbutfewerthantwo hundredthousandinhabitants,(f)twentyfivenewemployeesandnewinvestmentoftwomillion dollarsincountieswithatleasttwohundredthousandinhabitantsbutfewerthanfourhundred thousandinhabitants,or(g)thirtynewemployeesandnewinvestmentofthreemilliondollarsin countieswithatleastfourhundredthousandinhabitants.Anybusinessthathasonehundredthirtyfive thousandsquarefeetormoreandannualgrosssalesoftenmilliondollarsormorewillprovidean employerprovidedhealthbenefitofatleastthreethousanddollarsannuallytoallnewemployeeswho areworkingthirtyhoursperweekormoreonaverageandhavebeenemployedatleastsixmonths. ThecreationofnewemployeesismeasuredagainstthenumberofemployeeswithintheEEAintheyear immediatelypriortoadoptionoftheredevelopmentplan. IfaredevelopmentplanincludesthedesignationofanEEA,theredevelopmentcontractmustincludea statementoftheƩĻķĻǝĻƌƚƦĻƩ͸ƭconsenttothedesignation. Amunicipalitymaylevyageneralbusinessoccupationtaxuponthebusinessesandusersofspacewithin anEEAforpayingalloranypartofthecostsandexpensesofanyredevelopmentprojectwithintheEEA. Anyoccupationtaximposedneedstomakeareasonableclassificationofbusinesses,usersofspace,or kindsoftransactionsforpurposesofimposingthetax. OutsideaCommunityRedevelopmentArea DesignationofanareaoutsideacommunityredevelopmentareaasanEEArequiresthesame determinationsandthresholdswithregardtonewinvestmentandthecreationofnewemployeesas thedesignationofanEEAwithinacommunityredevelopmentarea.However,thecreationofnew employeesismeasuredagainstthenumberofemployeeswithintheEEAintheyearimmediatelyprior tothedesignationoftheEEA(ratherthantheyearimmediatelypriortotheadoptionofa redevelopmentplan).Additionally,rulesgoverningtheoccupationtaxdiffer,asdetailedbelow. Amunicipalitymaylevyageneralbusinessoccupationtaxuponthebusinessesandusersofspacewithin theEEAforpayingalloranypartofthecostsandexpensesofauthorizedworkwithinsuchEEA. AuthorizedworkforEEAsoutsideofaredevelopmentplanincludes: (a) Theacquisitionandconstructionofpublicoffstreetparkingfacilities; (b) Improvementofanypublicplaceorfacilityintheenhancedemploymentarea; (c) Constructionorinstallationofpedestrianshoppingmalls,sidewalks,parks,meetingand displayfacilities,andotherusefulornecessarypublicimprovements; (d) Acquiring,constructing,orrepairingparkinglotsorparkinggarages; (e) Creationandimplementationofaplanforimprovingthegeneralarchitecturaldesignof publicareas; (f) Thedevelopmentofanypublicactivitiesandpromotionofpublicevents; (g) Maintenance,repair,andreconstructionofanyimprovementsorfacilitiesauthorizedbythe CommunityDevelopmentLaw; (h) Anyotherprojectorundertakingforthebettermentofpublicfacilities; (i) Enforcementofparkingregulationsandsecurity;or (j) Employingorcontractingforpersonnel. Anyoccupationtaximposedneedstomakeareasonableclassificationofbusinesses,usersofspace,or kindsoftransactionsforpurposesofimposingsuchtax Theoccupationtaxleviedbythemunicipalityneedstoremainineffectsolongasthemunicipalityhas bondsoutstandingandwhicharesecuredbytheoccupationtax.Theassessmentsortaxesleviedmust bespecifiedbyordinanceandtheproceedscannotbeusedforanypurposeotherthanthemaking authorizedimprovementsintheEEAandfortherepaymentofbondsissuedforthefinancingofthese improvements. ReporttoPropertyTaxAdministrator OnorbeforeDecember1eachyear,eachmunicipalitythathasapprovedoneormoreredevelopment plansfinancedbyTIFisrequiredtoreporttothePropertyTaxAdministratoroneachsuch redevelopmentplanincludingacopyoftheredevelopmentplanandanyamendments.Ashort narrativeofthetypeofdevelopmentundertakenbythemunicipalityalsoneedstobeincluded. Thisreportmustbefiledeveryyearevenifnothinginthereporthaschanged,exceptthatamunicipality isnotrequiredtorefiletheredevelopmentplanoranamendmentifithaspreviouslybeenfiled. Ifacityorvillagehasapprovedoneormoreredevelopmentplansusinganexpeditedreview(microTIF), thecityorvillagemayfileasinglereporttothePropertyTaxAdministratorforalltheexpeditedreview redevelopmentplans. ReporttoGoverningBodyandOtherPoliticalSubdivisions OnorbeforeMay1ofeachyear,eachCRAisrequiredtocompileinformationontheprogressof redevelopmentprojectsthatarefinancedinwholeorinpartthroughTIFandreporttothegoverning bodyofthemunicipality. TheCRAmustalsosendtheprogressreporttothegoverningbodyofeachcounty,schooldistrict, communitycollegearea,educationalserviceunit,andnaturalresourcesdistrictwhosepropertytaxes areaffectedbysuchdivisionoftaxes. Thereportmustincludethefollowinginformation: (1)Thetotalnumberofactiveredevelopmentprojectswithinthecityorvillagethathavebeen financedinwholeorinpartthroughTIF; (2)Thetotalestimatedprojectcostsforallsuchredevelopmentprojects; (3)Acomparisonbetweentheinitialprojectedvaluationofpropertyincludedineach redevelopmentprojectasdescribedintheredevelopmentcontractor,forredevelopmentprojects approvedusinganexpeditedreview(microTIF),intheredevelopmentplan,andtheassessedvalueof thepropertyincludedineachredevelopmentprojectasofJanuary1oftheyearofthereport; (4)Thenumberofredevelopmentprojectsapprovedbythegoverningbodyintheprevious calendaryear; (5)Informationspecifictoeachsuchredevelopmentprojectapprovedbythegoverningbodyin thepreviouscalendaryear,includingtheprojectarea,projecttype,amountoffinancingapproved,and totalestimatedprojectcosts; (6)Thenumberofredevelopmentprojectsforwhichfinancinghasbeenpaidinfullduringthe previouscalendaryearandforwhichtaxesarenolongerbeingdivided;and (7)Thepercentageofthecitythathasbeendesignatedasblighted. (ExampleofareporttothegoverningbodyisincludedintheAppendix) CostsReimbursedPriortoApprovalofRedevelopmentProject TIFcannotprovideforthereimbursementofcostsincurredprior Aredevelopmentprojectthatincludes toapprovaloftheredevelopmentproject,exceptforthefollowingcosts: (1)Thepreparationofmaterialsandapplicationsrelatedtotheredevelopmentproject; (2)Thepreparationofacostbenefitanalysis; (3)Thepreparationofaredevelopmentcontract; (4)Thepreparationofbondandotherfinancinginstruments; (5)Landacquisitionandrelatedduediligenceactivities,including,butnotlimitedto,surveysand environmentalstudies;and (6)Sitedemolitionandpreparation. Whilesuchcostsmaybereimbursedviaalaterredevelopmentproject,amunicipalityshouldbecareful nottomakeanyguaranteestoredevelopersregardingthereimbursementofsuchcostsviaTIFpriorto approvaloftheredevelopmentplan.Also,thelawdoesnotrequirethereimbursementoflegalfees incurredpriortoapprovalofaredevelopmentproject. RedevelopmentContract Afterthegoverningbodyapprovestheredevelopmentplan,theCRAandtheredevelopernegotiatethe termsofaredevelopmentcontract. Theredevelopmentcontractdescribestheactiontobetakenbytheredevelopertoimplementthe redevelopmentproject,thetimelineforperformancebytheredeveloper,theobligationoftheCRAto issuetheTIFdebt,themakingofagranttotheredeveloper,andtheprovisionsforremediesinthe eventofdefault. Inaredevelopmentcontract,itisimportantthattheCRAandthemunicipalityareprotectedtothe greatestextentpossiblefromadverseconsequences.Theredevelopmentcontractshouldclearlydefine thelimitsoftheobligationsoftheCRAandnotethattheliabilityoftheCRAislimitedtotheissuanceof thedebtandpaymentofthedebtonlyfromthetaxespledgedandreceivedfromthecountytreasurer. TheredevelopmentcontractshouldincludeaclausethatanyamountsremainingontheTIFdebtatthe endoftheapplicablestatutoryperiodmustbeforgivenbytheredeveloper. Aredevelopmentcontractmayincludeanyadditionalrequirementsthemunicipalitydeemsnecessary toensuretheplanorprojectcomplieswiththeƒǒƓźĭźƦğƌźƷǤ͸ƭcomprehensivedevelopmentplan, affordablehousingactionplan,zoningregulations,andanyotherreasonableplanningrequirementsor goalsestablishedbythemunicipality. IfaCRAwantsaredevelopertoredeveloplandownedortobeownedbytheCRA,aprocesswitha publicrequestforproposalsmustbeused.ACRAmustgivenoticeoftheinvitationforproposalsina legalnewspaperonceaweekfor2consecutiveweeks.ACRAmustconsiderallredevelopment proposalsandfinancialandlegalabilityoftheredeveloperstocarryouttheirproposals. ACRAmustgiveatleast30ķğǤƭ͸noticetothegoverningbodyofitsintentiontoaccepta redevelopmentcontractproposal.Ifaredeveloperownsthelandtobedeveloped,nopublicrequest forproposalsisnecessary. PriortoenteringintoaredevelopmentcontractforaredevelopmentplanthatincludestheuseofTIF, theredevelopermustcertifythefollowing: (a)WhethertheredeveloperhasfiledorintendstofileanapplicationwiththeDepartmentofRevenue toreceivetaxincentivesundertheNebraskaAdvantageActortheImagiNENebraskaActforaproject locatedortobelocatedwithintheredevelopmentprojectarea; (b)Whethersuchapplicationincludesorwillinclude,asoneofthetaxincentives,arefundofthe ƒǒƓźĭźƦğƌźƷǤ͸ƭlocaloptionsalestaxrevenue;and (c)WhethersuchapplicationhasbeenapprovedundertheNebraskaAdvantageActortheImagiNE NebraskaAct. ApplicantsforTIFneedtoprovideinformationtotheCRAtodocumenttheneedforTIFandprovide detailforthetypeofimprovementsandthecostandtimelineforredevelopment.Somemunicipalities haveapplicationformswiththedatatobeprovidedtotheCRApriortocontractnegotiation. (ExampleofanapplicationformisincludedintheAppendix) ItemstobeincludedinRedevelopmentContract Thefollowingaresomeoftheitemsincludedinaredevelopmentcontact: 1. ProjectPlans:Aredevelopmentcontractshouldprovideprojectplansshowingdesign setbacks.Theplansformthebasisfortheprojectjustification.The standards,lotcoverage,and redevelopmentcontractshouldrequirethattheprojectbebuiltinaccordancewiththeplans andspecifications. 2. ProjectSchedule:Aprojectdevelopmenttimelineisimportantfortworeasons.First,atimeline shouldestablishperformancestandards.Failuretotimelyperformshouldbedefinedasdefault underthecontract.Second,thedevelopmentschedulewillimpactthecalculationofassessed valuationforpurposesofdeterminingthepledgedateofthedivisionoftaxesandtheamountof theTIFbond. 3. AnticipatedBaseYearandEffectiveDate:Inrelationtotheprojectschedule,the redevelopmentcontractshouldincludetheanticipatedbaseyearandeffectivedateforthe divisionoftaxes(divisionyear).Theeffectivedateestablishesthefirstyearinwhichexcessad valoremrealestatetaxesaredivided(althoughsuchtaxeswillnotbecollecteduntilthe followingyear,asrealestatetaxesarepaidinarrearsinNebraska).Theeffectivedatetypically coincideswiththefirstyearinwhichtheassessedvaluationoftherealpropertyincreasesdue totheproject. UndertheCommunityDevelopmentLaw,thebaseyearwillalwaysbetheyearpriortotheyear oftheeffectivedate.Thebaseyearestablishestheassessedvaluationoftherealproperty withintheprojectareaforwhichallincrementaladvaloremtaxesabovesuchassessedvalue arecollectedduringthestatutoryTIFperiod.WhiletheCommunityDevelopmentLaw previouslyrequiredthatthebaseyearoccurinthesameyearasredevelopmentplanapproval, thisisnolongerthecase.Toprovideprotectionagainstunanticipateddelaysinconstruction,it isadvantageoustoincludeaclauseintheredevelopmentcontractstatingthatthebaseyear andeffectivedateprovidedthereinaresubjecttochangeandwillultimatelybeestablishedin theresolutionapprovingissuanceoftheTIFbondornote. 4. ItemizationofProjectCosts:BecausetheproceedsoftheTIFbondmayonlybeusedtopayfor eligibleredevelopmentprojectcosts,theredevelopershouldlistitemstobepaidfromthose proceeds.TheCommunityDevelopmentLawprovidesthecategoriesofexpendituresforwhich TIFfundsmaybeusedandtheitemizedcostsneedtoalignwiththosecategories.Thecosts shouldbebasedonactualgoodfaithestimatesfromcontractorsandsubcontractors.For redevelopersthatwanttodosomeofthelistedworkthemselves,theCRAshouldrequirethe redevelopertodocumentthattheredevelopercostsarereasonable.Theitemizedlistof expendituresshouldincludethequalifyingexpendituresaswellasthetotalprojectitemization. 5. ProofofFinancialResources:Theredevelopershouldprovideproofthatheorshehasthe financialresourcestocompletetheprojectbasedontheestimatedcosts.Withrespecttothe constructionofpublicinfrastructure,theredevelopmentcontractshouldrequirethat redeveloperobtainpaymentandperformancebonds.Proofoffinancialresourcesincludes proofthattheredevelopercanobtainsuchbonds.Proofofresourcesalsoincludesashowingof equityandlendercommitmentsforconstructionoftheredevelopmentproject. 6. OrganizationDocuments:Theredevelopershouldprovidecopiesofcorporateorlimited liabilitycompanyorganizationaldocuments,includingacertificateofgoodstandingand authoritytoconductbusinessinthestate.Documentsshowingauthorityoftheindividualsto signonbehalfoftheredevelopershouldbeprovidedpriortotheredevelopmentcontractbeing finalized. 7. TitleCommitment:Inordertoeliminatequestionsastothecorrectlegaldescriptionofthe redevelopmentprojectrealestate,atitlecommitmentorğĬƭƷƩğĭƷĻƩ͸ƭcertificateoftitleshould beprovided. 8. ProofProjectNotEconomicallyFeasible:RedevelopmentprojectfundingfromaTIFbondis notauthorizedunlesstheCRAfindsthattheredevelopmentprojectmeetstheͻĬǒƷŅƚƩͼtest. Foracommercialproperty,proofofmeetingtheͻĬǒƷŅƚƩͼtestmayconsistofaprojectedcash flowdemonstratingtherateofreturnoninvestment(ROI).IftheROIisbelowmarket,TIF assistanceisappropriatetoincreasetheROItomarketrate. 9. AssessedValuation:InorderfortheCRAtodeterminethepotentialforTIFfunds,thecurrent assessedvaluationisrequired.Additionally,theassessedvaluationonJanuary1 nextfollowing projectcommencementandforeachJanuary1thereafterwillprovidethebasisforestimating thetaxincrementavailableforretirementoftheTIFbond.Assessedvaluationmayincreaseor decreaseoverthetermofTIFbondrepayments.Additionalconstructionontheprojectsite,or asimpleincreaseinvaluationortaxlevywillraisetheprojectedtaxreceipts.Theamount investedintheredevelopmentprojectconstructiondoesnotnecessarilyequatetotheassessed valuation.Particularlyinsmallercommunities,projectcostdoesnotalwaysequaltheassessed valuation,duetolimitedmarketability. 10. ProjectedAmortizationofTIFBond:Theredevelopershouldprovideaprojectedamortization oftheTIFbondwithaproposedinterestratebasedonthecurrentconsolidatedlevy,theproject scheduleandtheestimatedvaluationoncompletion. 11. RelocationInformation:TheCommunityDevelopmentLawimposesrelocationcostsonthe CRAifaredevelopmentprojectresultsintherelocationofindividuals,familiesorbusinesses.If housingunitsareeliminatedasaresultofaredevelopmentproject,equivalentreplacementof thosehousingunitsmustbeprovidedelsewhereinthemunicipality.Becauseofthis requirement,theredevelopermustdisclosewhethertheredevelopmentprojectwillresultin relocationandallthedetailsoftheƩĻķĻǝĻƌƚƦĻƩ͸ƭplantoproviderelocationpursuanttothe RelocationAssistanceAct. 12. PublicImprovementsandCosts:IftheproposedredevelopmentprojectrequiresthattheCRA orthemunicipalityundertakecostsorimprovementsthatwillnotbepaidbytheredeveloper, thoseimprovementsshouldbedescribedandengineeringdrawingsforsuchimprovements shouldbeattached.Anestimateofexpendituresforthosecostsshouldbeprovided. 13. PurchasingTIFDebt:Theredevelopmentcontractshouldrequirethattheredeveloperorits lenderpurchaseTIFdebtviaprivateissuancefortheprincipalamountoftheTIFdebt.Aspartof thepurchasecontract,theredevelopershouldberequiredtoexecuteapurchaseletterwith acknowledgementthatthedebtisnotregisteredwiththeSecuritiesandExchangeCommission andthatthedebtisexemptfromregistration.TheTIFdebtisnotgenerallysoldtothepublic norfundedbythemunicipality. 14. ContactInformation:Thecontractshouldincludetheentityname,addressandchiefcontact informationoftheredeveloperandtheCRA.Contactinformationfortheprojectengineerand architectshouldalsobeprovided. 15. PayingTaxes:Thecontractshouldincludeaprovisionrequiringthattheredevelopermustpay alladvaloremtaxesbeforethetaxesbecomedelinquentfortheprojecttoreceiveTIFfunds. (ExamplesofredevelopmentcontractsareincludedintheAppendix) ObligationsoftheRedeveloper Theobligationsoftheredevelopershouldclearlydelineatetimelineandperformancestandards.The followingliststheminimumofredeveloperobligations: 1.ConstructtheprojectinaccordancewiththeplansandspecificationsprovidedtotheCRA. 2.Investaminimumamountinimprovementsintheredevelopmentprojectbyaspecifieddate.The minimuminvestmentwillnotnecessarilyequatetotheprojectassessedvaluation. 3.Obtainallrequiredstate,localandfederalpermitsrequiredpriortocommencementofconstruction oftheproject. 4.Provideforrelocationofindividualsandbusinessesdisplacedbecauseoftheproject. 5.ProvideinsuranceatalevelcommensuratewiththeprojectandincludetheCRAandmunicipalityas anadditionalinsured. 6.Ifsignificantdemolitionwillbeinvolved,theredevelopershouldprovideapaymentandperformance bondtocompletethedemolitioninfavoroftheCRA.Intheeventofafailuretocompletetheproject, theCRAshouldhavetheoption,butnottheobligation,toproperlysecuretheincompleteprojectand notleaveapartiallydemolishedproject. 7.Iftheredevelopmentprojectprovidesforinstallationofpublicinfrastructure,thecontractshould provideforapprovalbythemunicipalityoftheplansandspecificationsofthepublicimprovement.The redeveloperandCRAshouldagreeastothemannerofbiddingforandinstallingthatinfrastructure. 8.Theredevelopershouldprovideapenalbondpriortocommencementofconstructioninanamount determinedbytheCRA. 9.Acontractorworkingontheprojectmustutilizethefederalimmigrationverificationsystemto determineeligibilityofnewemployeesperformingworkonpublicinfrastructure. 10.TheredevelopershouldtimelyprovidetheCRAproofthatallTIFfundswereutilizedforpaymentof eligibleexpenses.Theredeveloperisrequiredtoretaincopiesofallsupportingdocumentsthatare associatedwiththeredevelopmentplanorprojectthatarereceivedorgeneratedbytheredeveloper for3yearsfollowingtheendofthelastfiscalyearinwhichtaxesaredivided. 11.AnyTIFfundsnotutilizedforeligibleprojectexpendituresarerequiredtoberepaid.Therepayment ofthefundsshouldbeutilizedtoreducetheTIFdebt.TheredevelopershouldholdtheCRAand municipality,itsmembers,employees,agentsandattorneysharmlessforanyactionorclaimbecauseof theCRAandmunicipalityapprovingtheredevelopmentplanandredevelopmentcontract. 12.Theredevelopershouldmakereportsfromtimetotimerelatedtotheprogressoftheconstruction andaftercompletionoftheprojectastheCRAmayrequire. 13.TheCRAmayrequirecovenantsregardingtheuseandmaintenanceoftheredevelopmentproject. Thecovenantsmaybeprovidedbythetermsofthecontractorasaseparatedocument. 14.Theredevelopermustagreenottodiscriminateagainstoccupants,employeesandprospective employeesandinviteesofthepropertybasedonrace,religion,color,sex,nationaloriginordisabilityas definedintheAmericanswithDisabilitiesAct. 15.TheredevelopershouldprovidesecurityasrequiredbytheCRAforliquidateddamagecollectionin theeventofdefault. 16.Theredevelopershouldbeprohibitedfromconveyingtheredevelopmentprojectto anentitythat wouldbeexemptfromthepaymentofrealpropertytaxesorapplyforareductionofassessedvaluation belowanagreedlevel. 17.Theredevelopershouldagreetopayrealestatetaxesontheredevelopmentprojectpriorto delinquency. 18.Theredevelopmentcontractshouldrequireredevelopertodefershortfallsormakepaymentsto theCRAinlieuofrealestatetaxesifpropertytaxlevelsareinsufficienttoamortizeTIFbond. 19.Aredevelopmentprojectassignmentorconveyanceshouldberestrictedandrequireapprovalof theCRAandrequirethatanyassigneeassumeallobligationsoforiginalredeveloper. (AredeveloperchecklistisincludedintheAppendix) ObligationsoftheCRA TheCRAwillwanttolimititsliabilitytothegreatestextentpossible.Generally,thismeansitisrequired todonomorethanissuetheTIFdebtandmakeagrantoftheproceeds.Thefollowingaretheminimum obligationsforaCRA: 1. IssuanceofTIFdebtaccordingtothetermsandconditionssetforthinthecontract.Before issuingdebt,theredevelopershouldprovidetheCRAwithsignedconstructioncontractforthe improvements;proofoffinancialabilitytocompletetheproject;paymentandperformance bondsasprovidedinthecontract;proofofinsuranceasprovidedinthecontract;andaTIFdebt purchaselettersignedbythedeveloperinaformacceptabletothe/w!͸ƭlegalcounsel. 2. FilenoticeofredevelopmentcontractwiththeRegisterofDeeds. 3. FileannualreportswiththePropertyTaxAdministratorandgoverningbodyasrequiredbylaw. 4. Filetimelynoticestodividetaxeswithcountyassessorandcountytreasurer. 5. Fromtheproceedsofdividedtaxes,makeinterestandprincipalpaymentsontheTIFdebttothe registeredholderoftheTIFdebt. 6. FilenoticewithcountyassessorandcountytreasurertoterminatedivisionoftaxesonTIFdebt satisfactionorexpirationoftheapplicablenumberofyearsoftaxdivision. ExpeditedReviewsofRedevelopmentPlans(MicroTIF) Acitycouncilorvillageboardmaydecidebyresolutiontoallowexpeditedreviewsof redevelopmentplansthatmeetcertainrequirements.Theredevelopmentplanisexpedited becauseitisexemptedfromseveralrequirementsofͻƩĻŭǒƌğƩLC͵ͼExpeditedreviewormicro TIFisoptionalforcitiesandvillages.Ifacityorvillagedecidesitdoesnotwanttoallow expeditedreview,itdoesnotneedto. ProjectsEligibleforExpeditedReview Aredevelopmentplaniseligibleforexpeditedreviewif: (a)Theredevelopmentplanincludesonly1redevelopmentproject; (b)Theredevelopmentprojectinvolves:therepair,rehabilitation,orreplacementofanexisting structurethathasbeenwithinthecorporatelimitsforatleast60yearsandislocatedwithina substandardandblightedarea;ortheredevelopmentofavacantlotlocatedwithina substandardandblightedareathathasbeeninthecorporatelimitsforatleast60yearsand hasbeenplattedforatleast60years; (c)Theredevelopmentprojectislocatedinacountywithapopulationoflessthan100,000 inhabitants,meaningeverycountyexceptDouglas,LancasterandSarpyCounty;and (d)Theassessedvalueofthepropertywithintheredevelopmentprojectareawhentheproject iscompleteisestimatedtobenomorethan:(i)$350,000foraredevelopmentprojectinvolving asinglefamilyresidentialstructure;(ii)$1,500,000foraredevelopmentprojectinvolvinga multifamilyresidentialstructureorcommercialstructure;or(iii)$10,000,000fora redevelopmentprojectinvolvingtherevitalizationofastructureincludedintheNational RegisterofHistoricPlaces. StepsforExpeditedReview Theexpeditedreviewconsistsofthefollowingsteps: (1)Aredeveloperpreparestheredevelopmentplanusingastandardform.Thestandardform isincludedintheAppendix.Theformneedstoinclude: (i)theexistingusesandconditionofthepropertywithintheredevelopmentprojectarea; (ii)theproposedusesofthepropertywithintheredevelopmentprojectarea; (iii)thenumberofyearsthestructureorvacantlothasbeenwithinthecorporatelimitsofthe municipality; valueofthepropertywithintheredevelopmentprojectarea; (iv)thecurrentassessed (v)theincreaseintheassessedvalueofthepropertywithintheredevelopmentprojectarea thatisestimatedtooccurasaresultoftheredevelopmentproject;and (vi)anindicationofwhethertheredevelopmentprojectwillbefinancedinwholeorinpart throughthedivisionoftaxes(TIFfunds). (2)Theredevelopersubmitstheredevelopmentplandirectlytothegoverningbodyalongwith anybuildingpermitorotherpermitsnecessarytocompletetheredevelopmentprojectandan applicationfeeinanamountsetbythecitycouncilorvillageboard.Theapplicationfeecannot exceed$50,whichisseparatefromanyfeesforbuildingpermitsorotherpermitsneededfor theproject. (3)Ifthecitycouncilorvillageboardhaselectedtoallowexpeditedreviewsofredevelopment plansandthesubmittedredevelopmentplanmeetstherequirementslistedunderͻ Projects EligibleforExpeditedReview ͼͲthecitycouncilorvillageboardisrequiredtoapprovethe redevelopmentplanwithin30daysaftersubmission. Eachcityorvillagemayselectanappropriateemployeeordepartmenttoconductexpedited reviews. StepsNOTRequiredforExpeditedReview(microTIF) Theredevelopmentplanisexpeditedbecauseitisexemptedfromseveralrequirementsof ͻƩĻŭǒƌğƩLCͼ͵SomeofthestepsthatareexcludedfromexpeditedreviewTIFinclude:the detailedredevelopmentplanasrequiredinsection182111;thereviewoftheredevelopment planbyplanningcommission;thecostbenefitanalysis;andtherequirementtohavepublic hearingsontheredevelopmentplanbeforetheplanningcommissionandthecitycouncilor villageboard. RequirementsifProjectisFinancedbyTIF Foranyapprovedexpeditedreviewredevelopmentprojectthatisfinancedbydivisionoftaxes (TIFfunds),theCRAisrequiredtoincurindebtednessintheformofapromissorynoteissuedto theownerofrecordofthepropertywithintheredevelopmentprojectarea. Thetotalamountofindebtednesscannotexceedtheamountestimatedtobegeneratedovera 15yearperiod.Thetermsofthepromissorynoteneedstoclearlystatethattheindebtedness doesnotcreateageneralobligationonbehalfoftheCRAorthecityorvillageintheeventthat theamountofTIFfundsgeneratedoverthe15yearperioddoesnotequalthecostsofthe agreeduponwork. (AnexampleofapromissorynoteisincludedintheAppendix) RoleofCountyAssessorinExpeditedReview(microTIF) Aftercompletingtheagreeduponwork,theredevelopernotifiesthecountyassessor.The countyassessorthendetermines: (1) Whethertheredevelopmentprojectiscomplete.Redevelopmentprojectsmustbe completedwithin2yearsaftertheredevelopmentplanisapproved;and (2) Theassessedvalueofthepropertywithintheredevelopmentprojectarea. Afterthecountyassessormakestheabovedeterminations,thecountyassessorcertifiestothe CRA:thattheimprovementshavebeenmadeandcompleted;thatavaluationincreasehas occurred;theamountofthevaluationincrease;andthatthevaluationincreasewasduetothe improvementsmade. Afterthecertificationismade,theCRAmaybegintouseTIFfundstopaytheindebtedness incurredbytheCRA.Thepaymentsaregiventotheownerofrecordofthepropertywithinthe redevelopmentprojectarea.Asinglefundmaybeusedforallredevelopmentprojectsthat receiveanexpeditedreview. LengthofExpeditedReview(microTIF)Project Forredevelopmentplansthatreceiveanexpeditedreview(microTIF),TIFfundscannotexceed 15yearsaftertheeffectivedateasidentifiedintheredevelopmentplan. RoleofCountyPersonnel AlthoughtheCommunityDevelopmentLawisbasedinlocallaw,thecounty'sinvolvementisinherentin TIF.Specifically,thecountytreasurerandcountyassessorplayvitalrolesineveryprojectthatusesTIF. TIFinvolvesthedivisionofpropertytaxescollectedbythecounty.Assuch,thecountytreasurer overseesdividingthetaxesandsendingallexcessadvaloremtaxes(abovethebasevaluation)tothe CRAforplacementinaspecialfundcreatedfortheTIFproject.TheCRAshouldspecifytheroleofthe countytreasurerintheresolutionauthorizingtheissuanceofaTIFbondornote.Forsizingtheamount ofTIFavailableforagivenproject,itisimportanttorecognizethatthecountytreasurerwilltakea1% administrativefeefromallpropertytaxescollected. ThecountyassessoralsoplaysanimportantroleinTIFprojects.Asapublicservice,manycounty assessorsreviewpreliminaryplansandprovideinputontheanticipatedincreaseinvaluationafter redevelopmenttodeterminethemostaccurateestimateoftaxincrement.Itcanalsobehelpfulfor redeveloperstodiscusswiththecountyassessorhowcertainimprovementswillimpactvaluationofthe baseyear.Whiletheamountofinputwillvarybycounty,itisworthwhiletoinvolvethecountyassessor attheplanningstagesofredevelopmentprojectsinanefforttoobtainaccurateestimatesand informationforincorporationintoaredevelopmentplan.Inthecaseofexpeditedreview(microTIF), thecountyassessorplaysasignificantrolewithseveraldutiesspecificallyoutlinedinstatute. LengthofTIFProject ForͻƩĻŭǒƌğƩLCͼprojectsandexpeditedreview(microTIF),advaloremtaxescanbedividedfor aperiodnottoexceed 15 yearsaftertheeffectivedateintheprojectredevelopmentcontract orintheresolutionauthorizingtheissuanceofbonds. In2020,aconstitutionalamendmentwaspassedthatallowscitiesandvillagestoextendthe maximumlengthofindebtednessnottoexceed 20 yearsif,duetoahighrateof unemploymentcombinedwithahighpovertyrate,morethanonehalfofthepropertyinthe projectareaisdesignatedasextremelyblighted. OtherProvisionstoConsider Amunicipalitymayundertakearedevelopmentprojectthatincludespropertyoutsidethecorporate limitsifthepropertyisaformerlyuseddefensesite. Incitiesofthesecondclassoravillage,aredevelopmentprojectareamayinclude,whenitinvolvesthe constructionofanagriculturalprocessingfacility,annexedlandthatisnotcontiguousoradjacentor urbanorsuburbanincharacter. IftheprovisionsoftheCommunityDevelopmentLawareinconsistentwiththeprovisionsofanyother laworofanycitycharter,theprovisionsoftheCommunityDevelopmentLawarecontrolling. Cityorvillagechartersmayincludeadditionalnoticeandfactfindingrequirementsforapprovalof redevelopmentcontracts. Bonding ACRAmayissuebondsincludingthepaymentofprincipalandinterestuponanyadvancesforsurveys andplansforredevelopmentprojects. ThefundstopaytheTIFbondhavetwosignificantlimitations.First,thesourceofrepaymentislimited totheincreasedadvalorempropertytaxesfromtherealestateimprovedaspartoftheredevelopment project.Thesecondlimitationisthatthepaymentperiodisnottoexceed15or20yearsdependingon thetypeofTIFfromtheeffectivedate.Valuationsandleviescangodownforvariousreasons. Theredevelopmentcontractshouldnotprovideforthesimplereimbursementofrealestatetaxeseven iflimitedtoqualifyingexpenditures.ThisviolatestheNebraskaconstitutionandthestatuteswhich requiretheCRAtoincurdebt. Anylawsuit,action,orproceedinginvolvingthevalidityorenforceabilityofanybondoragreementofa city,village,orCRAbroughtafterthelapseof30daysaftertheissuanceofthebondsoragreementhas beenauthorizedwillbeconclusivelydeemedtohavebeenauthorizedandtheredevelopmentproject willbeconclusivelydeemedtohavebeencarriedoutinaccordanceprovisionsoftheCommunity DevelopmentLaw. DivisionofTaxes(TIF) Aredevelopmentplanmaycontainaprovisiontodividetaxesaftertheeffectivedateasidentifiedinthe projectredevelopmentcontractorintheresolutionoftheCRAauthorizingtheissuanceofbonds.For regularTIF,thetaxescanbedividedforupto15years,andforprojectsthatmeetthedefinitionof extremelyblighted,upto20years. TheCRAmustincuradebtbeforethetaxescanbedividedonaredevelopmentproject.Thedebtcan beintheformofabond,anote,anadvanceofmoney,orotherformofindebtedness. Totheextentthataredevelopmentplanauthorizesthedivisionofadvaloremtaxesleviedupononlya portionoftherealpropertyincludedintheredevelopmentplan,anyimprovementsfundedbyTIFfunds mustberelatedtotheredevelopmentplanthatauthorizedthefunds. Theeffectivedatefordividingadvaloremtaxeswillnotoccuruntiltherealpropertyinthe redevelopmentprojectiswithinthecorporateboundariesofthemunicipality,otherthantheexception foraformerlyuseddefensesite. ThenoticefordividingadvaloremtaxesmustbesenttothecountyassessoronorbeforeAugust1of theyearoftheeffectivedateoftheprovisiononformsprescribedbythePropertyTaxAdministrator. Thedivisionoftherealpropertytaxontheredevelopmentprojectcannotexceedtheapplicablenumber ofyearsfromtheeffectivedateofthenoticeprovidedtotheassessorbythegoverningbody.Thisisthe noticetodivide. (ExampleofnoticetodivideisprovidedinAppendix). IftheCRAfailstoprovidethenoticetodividetothecountyassessoronorbeforeAugust1ofthe calendaryearthetaxesweretobedivided,thetaxeswillremainundividedandallocatedtothepolitical subdivisionsforthatyear.Theuntimelynoticewillresultinthedivisionoftherealpropertytaxesbeing delayeduntilthefollowingyearfortheremainderofthefinancingtermoftheproject. Whenthebonds,loans,notes,advancesofmoney,orindebtedness,includinginterestandpremiums due,havebeenpaid,theCRAisrequiredtonotifythecountyassessorandcountytreasurerandallad valoremtaxesupontaxablerealpropertyinsucharedevelopmentprojectwillbepaidintothefundsof thevariouspoliticalsubdivisions. Thecountyassessorofthecountyinwhichtheredevelopmentprojectislocatedisrequiredtotransmit toaCRAandthecountytreasurer,uponrequestofaCRA,theredevelopmentprojectvaluation. Thecountyassessorisrequiredtoannuallycertify,onorbeforeAugust20,totheCRAandthecounty treasurerthecurrentvaluationforassessmentoftaxablerealpropertyintheredevelopmentproject. Ineachyearforwhichthecurrentassessedvaluationontaxablerealpropertyintheredevelopment projectexceedstheredevelopmentprojectvaluation,thecountytreasurerisrequiredtoremittothe CRA,insteadoftoanypublicbody,thatproportionofalladvaloremtaxesonrealpropertypaidthat yearontheredevelopmentprojectwhichsuchexcessvaluationbearstothecurrentassessedvaluation. ThesefundsarewhatisreferredtoasTIFfunds. ThereisoftenconfusionwhentheTIFtermcommences,whenitexpiresandhowtheexcesstaxesare collectedanddisbursedtoaredeveloper.Redevelopmentprojectexcessvaluationmeansthetotal assessedvaluationontherealpropertyinaredevelopmentprojectforthecurrentyearlessthe redevelopmentprojectbasevaluation.Thedivisionoftherealpropertytaxisdeterminedbysubtracting theredevelopmentprojectvaluationfromthecurrentyearassessedvaluetoarriveatthe redevelopmentƦƩƚƆĻĭƷ͸ƭexcessvalue. Example1fora15yearTIFTerm.TIFNoticefiledtimely,onorbeforeAugust1. 2015:CalendaryearthedivisionofrealpropertytaxesbeginforTIFproject. 2014:Basevaluedeterminedaslastvaluecertifiedinyearpriortothedivisionoftax. 2015throughexpirationoftheproject:TaxesaredividedforTIFforaperiodnottoexceed15years. Example2.TIFNoticefileduntimely. 2015:EffectivedatetodividetaxesforanapprovedTIFprojectbutTIFnoticereceivedbycounty assessorafterAugust1,2015.Taxeswillnotbedividedforthecurrentyearandwillbedistributedinfull topoliticalsubdivisions. 2014:Basevaluestilldeterminedaslastvaluecertifiedinyearpriortotheeffectivedatetodividetax. 2016throughexpirationofproject:TaxesaredividedforTIFusing2014asthebasevalue. TimelineofaTaxIncrementFinancingProjectHypotheticalCase January1,2015ΑBaseYear.EstablishBaseYearValuation. Spring201524monthconstructioncommences. January1,2016ΑDivisionDate(EffectiveDate).Assessorcreatesabaseandexcessaccountforthe propertyfor2016andfuturetaxes.(ValueestablishedonJanuary1,2016year1ofpossibleexcessad valoremtaxesleviedonOctober1st,2016dueandpayableonDecember31st,2016)Α\[źƉĻƌǤtobe partialvaluationornoincreaseinassessedvalue.NoticetodividesubmittedpriortoAugust1st,2016. Assessorcollects2015taxestocloseouttheexistingaccount.Constructioncontinues. January1,2017ΑPossiblepartialorfullvaluationbasedon18monthprogressofconstruction.2016 assessedvaluedidnotincreaseormayhavepartialvaluationincrease.SemiAnnualpayments1and2 for2016levyreceivedbymunicipality(likelysmallornone)andpaidtodeveloper/lender.Noorsmall incrementreceived.Constructioncomplete. January1,2018ΑFullvaluationofproject.SemiAnnualpayments3and4receivedfortaxesleviedin 2017.Ifthereisnoincreaseinassessedvaluein2017itwillresultinnoincrement.Partialvaluationin 2017resultsinpartialincrement.FullvaluationbyJanuary1,2017resultsinfullincrementreceived. January1,2019ΑFullvaluationofproject.SemiAnnualpayments5and6receivedfortaxesleviedin 2018.Fullincrementreceived. 2020ΑPayments7and8receivedfortaxesleviedin2019.FullIncrement. 2021ΑPayments9and10receivedfortaxesleviedin2020.FullIncrement. 11and12receivedfortaxesleviedin2021.FullIncrement. 2022ΑPayments 2023ΑPayments13and14receivedfortaxesleviedin2022.FullIncrement. 2024ΑPayments15and16receivedfortaxesleviedin2023.FullIncrement. 2025ΑPayments17and18receivedfortaxesleviedin2024.FullIncrement. 2026ΑPayments19and20receivedfortaxesleviedin2025.FullIncrement. 2027ΑPayments21and22receivedfortaxesleviedin2026.FullIncrement. 2028ΑPayments23and24receivedfortaxesleviedin2027.FullIncrement. receivedfortaxesleviedin2028.FullIncrement. 2029ΑPayments25and26 2030(15thyearoftaxeslevied)ΑPayments27and28receivedfortaxesleviedin2029.FullIncrement. 2031ΑPayments29and30receivedfortaxesleviedin2030.FullIncrement.Legalcounselforthestate PropertyTax!ķƒźƓźƭƷƩğƷƚƩ͸ƭofficehastakenthepositionthattaxesforyear15,paidafterthe15th anniversaryoftheeffectivedateofthedivisionoftaxesaretobepaidbythecountytreasurerand allocatedtotheTIFbond.Intheaboveexample,taxesleviedin2030,butpaidin2031areallocatedto theTIFbond. RecordRetention: Eachmunicipalitythathasapprovedoneormoreredevelopmentplansorredevelopmentprojectsthat arefinancedinwholeorinpartthroughTIFmustretaincopiesof: (a)allredevelopmentplans,and (b)allsupportingdocumentsassociatedwiththeredevelopmentplansorredevelopmentprojectsand withanyrelatedsubstandardandblighteddeclarationthatarereceivedorgeneratedbythe municipality. Themunicipalitymustretaintheredevelopmentplansandsupportingdocuments(whichincludes substandardandblightstudies,costbenefitanalyses,andanyinvoice,receipt,orclaimreceivedor generatedbythemunicipality)fortheperiodrequiredunderanyapplicablerecordsretentionschedule adoptedundertheRecordsManagementActorfor3yearsfollowingtheendofthelastfiscalyearin whichadvaloremtaxesaredivided,whicheverperiodislonger. (ArecordretentionchecklistisincludedintheAppendix) ImportantTerms: Blightedarea:anarea(a)which,byreasonofthepresenceofasubstantialnumberofdeterioratedor deterioratingstructures,existenceofdefectiveorinadequatestreetlayout,faultylotlayoutinrelation tosize,adequacy,accessibility,orusefulness,insanitaryorunsafeconditions,deteriorationofsiteor otherimprovements,diversityofownership,taxorspecialassessmentdelinquencyexceedingthefair valueoftheland,defectiveorunusualconditionsoftitle,impropersubdivisionorobsoleteplatting,or theexistenceofconditionswhichendangerlifeorpropertybyfireandothercauses,oranycombination ofsuchfactors,substantiallyimpairsorarreststhesoundgrowthofthecommunity,retardsthe provisionofhousingaccommodations,orconstitutesaneconomicorsocialliabilityandisdetrimentalto thepublichealth,safety,morals,orwelfareinitspresentconditionanduseand(b)inwhichthereisat leastoneofthefollowingconditions:(i)Unemploymentinthedesignatedareaisatleastonehundred twentypercentofthestateornationalaverage;(ii)theaverageageoftheresidentialorcommercial unitsintheareaisatleastfortyyears;(iii)morethanhalfoftheplottedandsubdividedpropertyinan areaisunimprovedlandthathasbeenwithinthecityforfortyyearsandhasremainedunimproved duringthattime;(iv)thepercapitaincomeoftheareaislowerthantheaveragepercapitaincomeof thecityorvillageinwhichtheareaisdesignated;or(v)theareahashadeitherstableordecreasing populationbasedonthelasttwodecennialcensuses.Innoeventshallacityofthemetropolitan, primary,orfirstclassdesignatemorethanthirtyfivepercentofthecityasblighted,acityofthesecond classshallnotdesignateanarealargerthanfiftypercentofthecityasblighted,andavillageshallnot designateanarealargerthanonehundredpercentofthevillageasblighted.Aredevelopmentproject involvingaformerlyuseddefensesiteoranyareadeclaredtobeextremelyblighteddoesnotcount towardsthepercentagelimitations. Extremelyblightedarea:asubstandardandblightedareainwhich:(a)Theaveragerateof unemploymentintheareaduringtheperiodcoveredbythemostrecentfederaldecennialcensusor AmericanCommunitySurvey5YearEstimateisatleasttwohundredpercentoftheaveragerateof unemploymentinthestateduringthesameperiod;and(b)theaveragepovertyrateintheareaexceeds twentypercentforthetotalfederalcensustractortractsorfederalcensusblockgrouporblockgroups inthearea. Redevelopmentplan:aplan,asitexistsfromtimetotimeforoneormorecommunityredevelopment areas,orforaredevelopmentproject,which(a)conformstothegeneralplanforthemunicipalityasa wholeand(b)issufficientlycompletetoindicatesuchlandacquisition,demolitionandremovalof structures,redevelopment,improvements,andrehabilitationasmaybeproposedtobecarriedoutin thecommunityredevelopmentarea,zoningandplanningchanges,ifany,landuses,maximumdensities, andbuildingrequirements. Redevelopmentproject:anyworkorundertakinginoneormorecommunityredevelopmentareas:(a) Toacquiresubstandardandblightedareasorportionsthereof,includinglands,structures,or improvementstheacquisitionofwhichisnecessaryorincidentaltotheproperclearance,development, orredevelopmentofsuchsubstandardandblightedareas;(b)toclearanysuchareasbydemolitionor removalofexistingbuildings,structures,streets,utilities,orotherimprovementsthereonandtoinstall, construct,orreconstructstreets,utilities,parks,playgrounds,publicspaces,publicparkingfacilities, sidewalksormovingsidewalks,conventionandciviccenters,busstopshelters,lighting,benchesor othersimilarfurniture,trashreceptacles,shelters,skywalksandpedestrianandvehicularoverpasses andunderpasses,enhancementstostructuresintheredevelopmentplanareawhichexceedminimum buildinganddesignstandardsinthecommunityandpreventtherecurrenceofsubstandardand blightedconditions,andanyothernecessarypublicimprovementsessentialtothepreparationofsites forusesinaccordancewitharedevelopmentplan;(c)tosell,lease,orotherwisemakeavailablelandin suchareasforresidential,recreational,commercial,industrial,orotheruses,includingparkingorother facilitiesfunctionallyrelatedorsubordinatetosuchuses,orforpublicuseortoretainsuchlandfor publicuse,inaccordancewitharedevelopmentplan;andmayalsoincludethepreparationofthe redevelopmentplan,theplanning,survey,andotherworkincidenttoaredevelopmentprojectandthe preparationofallplansandarrangementsforcarryingoutaredevelopmentproject;(d)todisposeofall realandpersonalpropertyoranyinterestinsuchproperty,orassets,cash,orotherfundsheldorused inconnectionwithresidential,recreational,commercial,industrial,orotheruses,includingparkingor otherfacilitiesfunctionallyrelatedorsubordinatetosuchuses,oranypublicusespecifiedina redevelopmentplanorproject,exceptthatsuchdispositionshallbeatitsfairvalueforusesin accordancewiththeredevelopmentplan;(e)toacquirerealpropertyinacommunityredevelopment areawhich,undertheredevelopmentplan,istoberepairedorrehabilitatedfordwellinguseorrelated facilities,repairorrehabilitatethestructures,andreselltheproperty;(f)tocarryoutplansfora programofvoluntaryorcompulsoryrepair,rehabilitation,ordemolitionofbuildingsinaccordancewith theredevelopmentplan;and(g)inaruralcommunityorinanextremelyblightedareawithina municipalitythatisnotaruralcommunity,tocarryoutconstructionofworkforcehousing. Substandardarea:anareainwhichthereisapredominanceofbuildingsorimprovements,whether nonresidentialorresidentialincharacter,which,byreasonofdilapidation,deterioration,ageor obsolescence,inadequateprovisionforventilation,light,air,sanitation,oropenspaces,highdensityof populationandovercrowding,ortheexistenceofconditionswhichendangerlifeorpropertybyfireand othercauses,oranycombinationofsuchfactors,isconducivetoillhealth,transmissionofdisease, infantmortality,juveniledelinquency,andcrime,(whichcannotberemediedthroughconstructionof prisons),andisdetrimentaltothepublichealth,safety,morals,orwelfare.