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TAX INCREMENT FINANCING (TIF) SUMMARY <br /> A Tax Increment Financing District (TIF) may be used if a <br /> community determines that the intended redevelopment area <br /> qualifies for designation as a blighted area, conservation area, , <br /> or industrial park conservation area, it must also determine the I <br /> extent to which redevelopment will occur with or without the use <br /> of TIF. If there is no assurance that the area will redevelop <br /> with private sector expenditures even with significant public <br /> sector actions, there will be no incremental revenue which can be <br /> used to finance project costs. Therefore, it should be used only <br /> after a definite private sector commitment has been made to <br /> develop a specific project. However, if an area, as a whole, <br /> will redevelop without the expenditure of public funds, then TIF <br /> cannot be used. <br /> After determining that an area potentially qualifies as a <br /> redevelopment area, a redevelopment plan must be prepared which <br /> outlines the overall program for redeveloping the area. The plan <br /> must conform to the local comprehensive plan. It should include: <br /> - Land uses proposed for the redevelopment area; <br /> - The series of public improvement projects to be under- <br /> taken; <br /> - Commitments and plans of private development in the <br /> area; <br /> - An estimate of the redevelopment costs; <br /> - The sources of funds to pay those costs; <br /> - The nature and terms of the bonds, if any, that may be <br /> issued; <br /> - The boundaries and a recent assessed valuation of the <br /> project area; and, <br />