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property.taxes applied to the base, when collected, is distributed to the school <br /> district,the county, the mur. cipality and other taxing bodies. The real property <br /> taxes that are applied t; the increased equalized assessed value above the Base, <br /> when collected, are distributed to the municipality for deposit in a special fund. <br /> 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 the <br /> 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 private <br /> redevelopment. The costs connected with these actions by the municipality are <br /> paid for with the Tax Increment generated by the increased assessed value caused <br /> by new private development. The types of activities include, among others: <br /> construction of public improvements, acquisition of property, relocation costs, <br /> demolition of buildings, site preparation, creation of certain training programs, <br /> developing planning studies,the rehabilitation of existing structures and the <br /> construction of certain facilities for other taxing bodies (under limited <br /> circumstances). The private costs that a municipality can pay include in part: <br /> helping to defray part of the developer's interest costs and reducing the cost of <br /> land acquisition. <br /> E. The area being considered must qualify as a blighted area or a conservation area <br /> or a combination of the two. In addition, an area may also qualify as an industrial <br /> park conservation area, if the municipality meets certain high unemployment <br /> conditions. To qualify as a blighted area, the area must contain, for improved <br /> property (land that is not vacant), at least 5 out of 13 factors. These are: (1) <br /> dilapidation, (2) obsolescence, (3) deterioration, (4) illegal use of individual <br /> structures, (5) structures below minimum code, (6) excessive land coverage and <br /> overcrowding of structures and community facilities,.(7) lack of ventilation, light <br /> or sanitary facilities, (8) inadequate utilities, (9) excessive vacancies, (10) <br /> deleterious land use or layout, (11) environmental clean-up, (12) declining <br /> 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 and <br /> (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 vacant <br /> land as blighted. They include: (1) land that was blighted before becoming <br /> vacant, (2) unused quarries, mines or strip mine ponds, (3)unused railyards, rail <br /> tracks or railroad rights of way, (4) chronic flooding that adversely impacts on <br /> real property in the area, (5) unused or illegal disposal sites and (6) a vacant area <br /> that have been designated town centers and meet certain other requirements. <br /> 3 <br />