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BRIGGS A..'W MORGAN TIF/ABA TEMENTCOIVIPARISONS The following are selected comparisons between tax increment financing and abatement. 1. Approval Process. TIF has a lengthy and involved approval process, including various notifications to county and school boards and, for redevelopment and housing TIF, the individual county commissioner, planning commission review, published notice and public hearing. By contrast, abatement is a much simpler process except that it is a jurisdiction-by- jurisdiction determination, whereas in TIF the tax increment authority makes the final decision. So TIF is a complex process done once, whereas abatement, on a city/county/school district equivalency, is a simpler process done potentially three times - three public hearings, three abatement resolutions and three development agreements (or one 'Joint powers" agreement). The procedural (and substantive) moral is use TIF, if possible, instead of abatement. 2. County/School District Veto. Counties and school districts do not have the right to veto TIF but obviously do have the right to approve or disapprove abatement of their own taxes. 3. New Value/Existing Value. Only new value generates TIF (except for pollution remediation), but taxes on existing value can be abated. 4. Findings. TIF has numerous findings which must be made, including a number of very specific analyses, justifications, inspections, etc. By contrast, while abatement does require findings to be made, and they should be supported by a statement of the relevant facts, the more onerous justification requirements of the TIF law do not apply. -5. Use/Eligibility Restrictions. TIF districts, depending on their type, are limited either as to the type of property which qualifies or the use which can ensue, not to mention various expenditure restrictions. For 369177. t 6