R2012-165 PROVIDING FOR A FEASIBILITY STUDY ON THE DESIGNATION OF A PORTION OF THE CITY

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WHEREAS, it is the intent of the City to reimburse property acquisition costs incurred after the adoption of this Resolution to the extent permitted by law; and WHEREAS, the purpose of the proposed redevelopment plan and project is to generate private investment in the targeted area, thereby eliminating or reducing blighted conditions or conditions that lead to blight and provides for the long-term sound growth of the community; and WHEREAS,tax increment allocation financing utilizes the increase in real estate taxes ("tax increment") resulting from the increase in value of properties located in a redevelopment project area to pay for certain redevelopment projects costs as provided for in the Act; and WHEREAS, the planned Redevelopment Project Area may result in the displacement of residents from 10 or more inhabited residential units and therefore may require a Housing Impact Study. NOW,THEREFORE, BE IT RESOLVED by the Mayor and the City Council of the City of Decatur, Illinois as follows: 1. The boundaries of the contemplated Redevelopment Project Area to be studied are described on Exhibit A attached hereto. 2. The purposes of the proposed Redevelopment Plan for the contemplated Redevelopment Project Area are (i)the elimination of blighting characteristics as defined by the Act, (ii) the enhancement of the tax base, (iii) to provide new commercial development opportunities in a planned, integrated fashion and (iv)to provide new public infrastructure which will enhance public-use. 3. That the Mayor and the City Council at this time believe expenditures of development costs in furtherance of the plan and potential development should be allowable project costs under the plan, provided that this resolution is not a guarantee that any such plan will be adopted, but rather an expression of the sense of the City at this time. 4. That a feasibility study should be undertaken to determine whether the contemplated Redevelopment Project Area and a redevelopment plan pertaining thereto can and should be established pursuant to the Act. 5. The following constitutes a general description of tax increment allocation financing under the Act: A. Tax Increment Financing (TIF) is a redevelopment tool authorized by the Act and used by municipalities throughout the State of Illinois to help revitalize certain areas by eliminating certain blighting conditions and instituting conservation measures in order to encourage private investment and to enhance the tax base. B. When a Redevelopment Project Area is established, the existing equalized assessed value of the property in the area is determined (the "Base"). The real 2