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BRIGGS A....D MORGAN 3. Abatement Resolution: Development Agreement. After the public hearing, the jurisdiction can adopt the "abatement resolution," which must specify the terms of the abatement and include a specific statement on the nature and extent of the public benefits which are expected to result from it. The abatement can be limited any way the jurisdiction might choose, e.g., for a term less than 10 years, to a specific dollar amount or to taxes resulting from specitic improvements. Again, land values, TIF, fiscal disparities and 50% of the school's general education levy cannot be abated. The maximum term of an abatement is 10 years, but if the abatement resolution does not specify a term, the abatement is for 8 years. Unless the abatement resolution provides that the abatement can't be modified, the law specifically gives the jurisdiction the right to review and modify the abatement every second year after approval. For an abatement project lasting more than two years, therefore, it would be important to include in the abatement resolution a statement that the abatement can't be modified; otherwise, the governing body would have the discretion to change or discontinue it every two years. The abatement resolution does not as a rule dispense with the need for a development or similar agreement between the jurisdiction and the abatement beneficiary. The jurisdiction will want one to set the terms upon which the abatement will be granted or continue, e.g., what will be built and/or operated and how many jobs. The beneficiary will want a binding contract for its entitlements, which an abatement resolution may not be for certain. 4. School Districts. A school district cannot abate more than 50% of its annual general education levy. Furthermore, a school district must reapprove an abatement each year. Therefore, school districts have the discretion to discontinue the abatement in any or all subsequent years after first approved, even (apparently) where the school's abatement is pledged to pay bonds. Probably the best that can be done to assure the school district's full-term participation is to provide a "moral obligation" along the lines that the district promises to bring the renewal forward for decision every year and an acknowledgement by the district that the beneficiary relies on the district's assistance in going forward, but the district could still terminate the abatement. 369177.1 4