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City of Centerville <br />EDA Minutes <br />September 16, 2020 <br />Motion by President Hanzal, seconded by Commissioner Giovinazzo, to request a <br />preliminary budget for 2021 of $29, 200.00 from the City Council. A roll call vote was taken. <br />All in favor. Motion carried. <br />3. Tax Increment Financing (TIF) Discussion <br />President Hanzal asked Executive Director Statz for an explanation of Tax Increment Financing <br />(TIF) and how that money is used to fund a building project. <br /> <br />new building verses taxes paid by whatever was there before. <br />For example, a vacant lot pays in approximately $4,000 per year. If it is estimated that a new <br />building on that lot might generate $100,000, then <br />what is eligible to be paid back to the tax paying entity. The tax payer will pay $100,000 in taxes, <br />but receives the $96,000 back. The money is tax money, but if not for the incentive the project <br />would not happen. The City needs to weigh the differences: is it more advantageous to create a <br />TIF district even though they would be refunding the taxes for the life of the TIF district, or are <br />they better off not offering incentives and discovering whether the developer will build without it. <br /> <br />There are also different kinds of TIF and different TIF arrangements. For example, the TIF district <br />which was proposed for Block 7 was a ement that states that if the city does <br />not collect enough taxes to meet the TIF obligati <br />Also if a TIF district is 16 years (as was proposed with Block 7) and it is paid off in 13 years, then <br />the city does not have to pay the additional three years. <br /> <br />VI. NEW BUSINESS <br /> <br />1. <br />a. Newspaper Ad Package <br />b. Main Street Marketers Service Package <br /> <br />Executive Director Statz stated that he had contacted Quad Community Press and Main Street <br />Marketers to create one-year service packages for 2021 so that the EDA could use CARES Act <br />funds to pay for those programs. Each vendor has given him a quote and he would like the EDA <br />to approve them. <br /> <br />Motion by Commissioner Giovinazzo, seconded by Commissioner Weatherhead to approve <br />the $3,000.00 proposal from Main Street Marketers and the $9,249. 00 proposal from Quad <br />Area Press from the EDA general fund, with potential reimbursement from the CARES Act. <br />A roll call vote was taken. All in favor. Motion carried. <br />2. Release of remaining 2020 funds <br /> Page 4 of 5 <br /> <br />