pf_02963 - Laserfiche WebLink

Home

BRIGGS A.'I'D MORGAN , example, raw land "economic development" TIF is generally limited to manufacturing/research and development/warehouse; "housing" TIF means income restrictions; "redevelopment" means property which meet:; a certain definition of "blight". None of these apply for abatement, and any number of projects could be abated which would not qualify for TIF treatment, such as housing irrespective of income limits, commercial and retail facilities, and any other project '.....hich meets the basic findings required for abatement. 6. Fiscal Disparities: MetrolIron Range. Fiscal disparities don't come out of tax increment, unless so elected by the TIF authority, except for economic development districts requested for certification after June 30, 1997. By contrast, in the Metro and taconite areas none of the taxes attributable to the value contributed to fiscal disparities can be abated. This can be a significant portion of commercial/industrial tax base. 7. Time Limits. Abatement can last a maximum of 10 years, whereas housing and redevelopment tax increment districts can last for up to 26 years of increment. 8. Revenue Generation. Tax increment is a far more accessible and productive means of generating dollars to use directly or indirectly for a project. Abatement requires deduction of land value, fiscal disparities, and 50% of the school district general education levy, and further requires that each jurisdiction approve its own abatement. In practice, abatement generates far fewer dollars to work with. 9. Bonding. General obligation TIF bonds can be issued if it is estimated that increment will be generated in an amount not less than 20% of the cost of the project. General obligation bonding under abatement would require a voter referendum. 369177.1 7