2001-02-28 CC - Laserfiche WebLink

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development capability as well as specific capability in the type and size of development proposed. I. The developer should retain ownership of the project at least long enough to complete it, to stabilize its occupancy, to establish the project management, and to initiate repayment of the TIP. 1. The level of TIF funding should be reduced to the lowest possible level by maximizing the use of private debt and equity financing first, and then using other funding sources or income producing vehicles that can be structured into the project financing, prior to using additional TIP funding. 5. TAX INCREMENT PROJECT EV ALVA TION CRITERIA 5.01 All projects will be evaluated on the following criteria for comparison with other proposed TIP projects reviewed by the City, and for comparison with other subsidy standards (where appropriate). It is realized that changes in local markets, costs of construction, and interest rates may cause changes in the amounts of Tax Increment subsidies that a given project may require at any given time. 5.02 Some criteria, by their very nature, must remain subjective. However, wherever possible "benchmark" criteria have been established for review purposes. The fact that a given proposal meets one or more "benchmark" criteria does not mean that it is entitled to funding under this policy, but rather that the City is in a position to proceed with evaluations of (and comparisons between) various TIF proposals, using uniform standards whenever possible. 5.03 Following are the evaluation criteria that will be used by the City ofCenterville A. All TIF proposals should optimize the private development potential of a site. B. All TIP proposals should obtain the highest possible private to public fmancial investment ratio. The Council establishes a benchmark ratio of 3 parts private to I part public funding for industrial projects. Rousing and retail/commercial projects shall be reviewed on an individual basis. C. All TIP proposals should create the highest feasible number of new jobs on the site. The Council establishes a benchmark of one newly created (or retained) FTE job per $ of TIP assistance provided to industrial projects. Housing and Retail/Commercial projects shall be reviewed on an individual basis. D. All TIF proposals should create the highest possible ratio of property taxes paid before and after redevelopment Given the different assessment circumstances in the City, this ratio will vary widely. However, under normal circumstances, the Council will expect at least a 1:2 ratio of taxes paid before and after redevelopment. E. TIF proposals should normally not be used to support speculative industrial, commercial, and office projects. In general, speculative projects are defined as those projects which have letters of intent or preleasing for less than 50% of the available leasable space. F. All TIF proposals will be reviewed to determine the feasibility to provide the City with equity participation in new developments (through a share of the profits), or to treat the TIP assistance as a second mortgage with fixed payments. G. All TIF proposals involving displacement oflow and moderate income residents should give specific attention to the re-housing needs of those residents. Normally, this should be done as a part of the TIF funding proposal. Adequate solutions to these re-housing needs will be required as a matter of