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B. When a Redevelopment Project Area is established, the existing equalized <br /> assessed value of the property in the area is determined(the "Base"). The real <br /> property taxes applied to the base, when collected, is distributed to the school <br /> district, the county,the municipality and other taxing bodies. The real property <br /> taxes that are applied to the increased equalized assessed value above the Base, <br /> when collected, are distributed to the municipality for deposit in a special <br /> fund. This is the "Tax Increment". <br /> C. For a municipality to establish a TIF District,the municipality must determine <br /> that the Redevelopment Project Area, as a whole, would not develop without <br /> the assistance to be provided by TIF. <br /> D. The Municipality undertakes certain activities or agrees to pay certain private <br /> costs as incentives to make the Redevelopment Project Area attractive for <br /> private redevelopment. The costs connected with these actions by the <br /> municipality are paid for with the Tax Increment generated by the increased <br /> assessed value caused by new private development. The types of activities <br /> include, among others: construction of public improvements, acquisition of <br /> property, relocation costs, demolition of buildings, site preparation, creation of <br /> certain training programs, developing planning studies, the rehabilitation of <br /> existing structures and the construction of certain facilities for other taxing <br /> bodies (under limited circumstances). The private costs that a municipality can <br /> pay include in part: helping to defray part of the developer's interest costs and <br /> reducing the cost of land acquisition. <br /> E. The area being considered must qualify as a blighted area or a conservation <br /> area or a combination of the two. In addition, an area may also qualify as an <br /> industrial park conservation area, if the municipality meets certain high <br /> unemployment conditions. To qualify as a blighted area, the area must contain, <br /> for improved property(land that is not vacant), at least 5 out of 13 factors. <br /> These are: (1) dilapidation, (2) obsolescence, (3) deterioration, (4) illegal use <br /> of individual structures, (5) structures below minimum code, (6) excessive <br /> land coverage and overcrowding of structures and community facilities, (7) <br /> lack of ventilation, light or sanitary facilities, (8) inadequate utilities, (9) <br /> excessive vacancies, (10) deleterious land use or layout, (11) environmental <br /> clean-up, (12) declining assessed value and (13) lack of community planning. <br /> F. For vacant land, the area must contain 2 of the following 6 factors: (1) obsolete <br /> platting, (2) diversity of ownership (3)real estate tax and special assessment tax <br /> delinquencies, (4)environmental contamination, (5) declining assessed value <br /> and (6) deterioration of structures or site improvements on vacant land. <br /> G. There are, in addition to the above, 6 individual factors that would qualify <br /> vacant land as blighted. They include: (1) land that was blighted before <br /> becoming vacant, (2) unused quarries, mines or strip mine ponds, (3) unused <br /> railyards, rail tracks or railroad rights of way, (4) chronic flooding that <br /> adversely impacts on <br /> 3 <br />