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<br />Common Misconceptions about <br />Tax Increment <br />. All taxes go to the City or the developer <br /> <br />In reality... <br /> <br />Tax increment is a portion of the total taxes paid <br />Tax increment is only the increase in taxes due to <br />redevelopment and new construction <br />Tax increment is not taxes paid prior to <br />redevelopment <br />Tax increment is not taxes from State levies <br />Tax increment is not taxes from market value <br />referendum levies <br /> <br />Common Misconceptions about <br /> <br />Tax Increment <br />. The project would have occurred anyway so tax <br />increment is not necessary <br /> <br />In reality... <br />The "But For" test must be met and findings made by <br />the City Council. If not, the City cannot authorize the <br />use of tax increment <br /> <br />Example: <br />>-If the cost to acquire & prepare a site is $1 O/sq. ft. <br />>- But the value of the site is only $5/sq. ft. <br />>- The new development can not occur "but for" tax <br />increment <br /> <br />Common Misconceptions about <br />Tax Increment <br />. Tax increment is always a subsidy to the <br />developer <br /> <br />In reality... <br /> <br />Tax increment is generally used to: <br />Make the site developable <br />Make the land uses consistent with City plans <br />Make housing affordable <br />Make Brownfields competitive with Greenfields <br /> <br />Common Misconceptions about <br />Tax Increment <br />. Tax increment makes it easier to use <br />condemnation <br /> <br />In reality... <br /> <br />Tax increment is a financing tool only <br /> <br />Condemnation is not authorized in the Tax Increment Act <br /> <br />Condemnation is authorized in other statutes to <br />encourage redevelopment <br /> <br />5 <br />