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Tax Increment Financing (TIF) <br />Q: Will Tax Increment Financing (TIF) be used? <br />A: The city and the prospective developers have a Memorandum of Understanding <br />(MOU) which outlines terms of a potential TIF agreement for between 10 and 15 years or <br />$2.5 million in TIF, whichever comes first. The MOU has many provisions, setting the <br />expectations attached to such an offer, including, most importantly, that the project meet <br />the legal criteria for a Redevelopment TIF District. <br />Q: Will there be a public hearing on TIF? <br />A: Yes. A separate public hearing on Tax Increment Financing (TIF) will be held as part <br />of the requirements for the establishment of a TIF district. This hearing is set for June <br />12, at 6:30 PM at the City Council Meeting. <br />Q: Why would the city consider TIF for this project? <br />A: Tax Increment Financing is a tool that cities can use to help make a development <br />feasible where conditions on the site make it otherwise cost prohibitive. Sites which <br />present difficulties to development proposals often lend themselves to lower cost, often, <br />less desirable alternatives to make the project pencil-out. Using TIF is a way to keep the <br />property competitive in the open market for high-quality development. <br />TIF is also a way to create positive momentum in an area that has traditionally struggled <br />to attract investment. The city’s downtown area has not seen significant investment since <br />the elementary school was constructed in the 1970s. Building a new project of this scale, <br />can lead to other redevelopment projects. <br /> <br /> <br /> <br />