Tonight the Board of Estimates may finally act on the TIF policy that we’ve been working on since fall of 2004 . . . tho it is only a partial package . . .
For a more thorough history of TIF and background documents, see this post. The post you are reading will be my attempt to summarize which issues in the BOE subcommittee report and from elsewhere have been resolved with the proposal before the BOE tonight and which are left for the committee that we are forming.
1. The whole policy is completely re-written and re-arranged to make it more readable. Staff did a great job making sure the new policy references the old one, so you can easily track the changes.
2. It has been a practice that “student housing”, both publicly and privately owned, is not funded with TIF and now it is written in the policy. 1.2(c)
3. Simultaneous review of TIF assistance and land use approvals. 2.1(a)(2)
4. Land use applications should include the information about if a developer is going to ask for TIF. 2.1(a)(3)
5. Complete TIF applications are due by April 15th in order to be considered in the following year’s budget, including having met with the Alder. 2.1(a)(4)
6. TIF application fees should be paid at the time of application and are non-refundable. 2.1(a)(5)
7. If the property isn’t in a TIF District, and it requires the City to amend a TIF or create one, land use approvals and TIF approval must be obtained by April 15th. 2.1(a)(6)
8. Staff must be completed with their analysis of a project by June 15th in order to be considered for the following year’s budget. 2.1(a)(8)
9. Applications that miss the deadline have to either wait for the following year or get 15 votes at the council. 2.2(a)
10. After June 15th if there are too many requests or there are requests that do not meet the City’s goals, the Mayor may authorize a vetting process before the Board of Estimates to prioritize the requests. 2.2(b)
11. Changes were made regarding new state laws. 2.3(e)(3), 3.4(c), 3.4(d)
12. A report will be made to the Board of Estimates prior to a new TIF District proposal coming forward. 2.3(f)
13. TIF assistance shall not exceed the amount of equity the developer is putting in to the project. 3.1(b)
14. Donated developer fees do not count as equity. 3.1(b)
15. The practice regarding Equity Kickers has been written into the policy. 3.1 (i)
16. Language about recent changes to condemnation law was written into the policy. 3.1(j)
17. If more than 50% of the gap is attributable to IZ or if the units are receiving more than 50,000 per unit, the Board of Estimates shall review the IZ waiver request in a joint session with the Plan Commission. 3.1(o)
18. Developers have to do “due diligence” and provide information to the City when purchasing land. 3.3(a)(1)
19. Requires meetings with Alders and City Staff prior to consideration of the TIF request. 3.3(a)(2)
20. Developers are encouraged to utilize options to purchase prior to finding out the results of their TIF request. 3.3(a)(3)
21. TIF requests, even if borrowing is not required, require Council approval. (i.e. if there is enough money built up in a TIF district) 3.5(a)
22. Project must be included in Capital Budget in order to borrow funds. 3.5(b)
23. The Council must approve internal borrowing for TIF. 3.5(c)
24. Pay-As-You-Go financing or “developer financed” TIF can be considered on a case-by-case basis. 3.5(d)
25. TIF policy exceptions shall be made only in rare instances and the Council shall state the reason for making the exception. 4(a)
Plan Commission added the following things:
1. Definition of “speculative” for office developments to be “projects that have not secured anchor tenants” 1.2(a)
2. Clarifications in various sections. 2.1(a)(4), 2.1(a)(5)
3. An “interested party registry” was added. 2.3(g)
4. Requirement of developer to pay for mailings for neighborhood meetings regarding TIF District creation or amendments. 2.1(a)(6)
5. Added details of what must be reported in open session prior to going into closed session at the Board of Estimates. 2.1(a)(7)
6. TIF assistance for IZ is withheld until the IZ units is actually sold as an IZ unit. 3.1(d)
7. Requires an Annual TIF report that includes:
a) The financial position of each TID
b) progress of the implementation of the infrastructure improvements
c) TIF assistance to private developers
8. The use of a “term sheet” to document agreed upon terms after BOE recommendation. 2.1(8)
The short list of things (I’m sure there are more) that were not considered in the TIF proposals are as follows:
1. A forum for developer appeal of a decision.
2. Making the “50% rule” ironclad.
3. Re-examine the policy for rental housing and TIF.
4. Revising the equity kicker formula.
5. Review of the 10% set aside program.
6. Re-evaluating the TIF priorities. (economic development and job creation vs. housing)
7. Small Capital TIF Assistance program for conversion/restoration of historic property, commercial facade improvements, conversion of homes from rental to owner-occupied.
8. Community Benefits agreements.
9. Review of Industrial TIF goals.
10. Public oversight of TIF Districts.
11. Policy regarding timelines for new TIF districts.
12. Restricting the amount of parking that can receive TIF assistance. (Mayor suggests .8 for owner-occupied, .5 for rental and 1 per 1,000 sq ft of retail)
13. Measuring the outcomes of TIF assistance.
14. Streetcars.
15. Grocery Stores.
Oh, I’m sure there’s more, but I’m exhausted . . . as you can see, there’s still plenty to talk about . . . but I hope we move forward with what we have . . .
