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81 PrODertv acauisition 82 Cities can also use TIF to acquire properties which provides the maximum control and risk for 83 redevelopment. A city should ensure it has a complete knowledge of property condition and 84 development risks if it wants to become the underlying landowner (or joint venture owner) as 85 well as develop a strategy for the eventual sale of the asset. Since the City would have an 86 underlying ownership interest, the City has extensive ability to negotiate with end users and 87 achieve the development that is desired. 88 POLICY OBJECTIVE 89 The use of TIF can be used to support a number of policy objectives. As an example, in 2008, 90 the City developed the Twin Lakes Public Financial Participation Framework (Attachment C) 91 which outlines the policy objectives that the City Council is attempting to achieve with the use of 92 financial incentives (including TIF) in the Twin Lakes area 93 In addition, when TIF districts are created, they include a TIF Plan which outlines the policy 94 objectives for that district. 95 BUDGET IMPLICATIONS 96 In the short term, TIF districts can cause a small amount of reduction in taxes received due to the 97 loss of inflationary valuation increases. In the long run, the proper use of TIF districts should 98 significantly increase the amount of taxes received by the City due to the increased property 99 valuation and economic activity. loo Depending on how the TIF funds generated are used, they can reduce City expenditures for items 1o1 such as capital improvements that would otherwise need to be financed through the general levy, 102 assessments, fees or some other method. 1o3 Of course, any new infrastructure creates new ongoing city maintenance obligations over the 104 long term and intensification of uses can increase incremental demands on city services since 105 more employees/shoppers/residents means more people using streets, parks, and needing los emergency services. However, cities that use TIF generally view those incremental costs to be 107 balanced out by being able to capture county and school incremental funds while the district is 108 active and then the permanent higher tax revenues going forward when the district expires. log However, being aware of the long term costs and benefits is often one of the key inputs into a 11 o city's determination of whether it wants to provide economic development assistance to any 111 particular development proposal and why some cities prefer financing methods that preserve end 112 user negotiations where those costs and benefits can be more accurately estimated. 113 Page 3 of 5