ࡱ> 4(    nhttp://data.opi.state.mt.us/bills/mca/76/1/76-1-103.htmnhttp://data.opi.state.mt.us/bills/mca/76/1/76-1-103.htm/ 0DArialBlackS0ttt%E  0DComic Sans MS0ttt%E  0B DArial BlackS0ttt%E  0"@ .  @n?" dd@  @@`` s#5 5!')+,6578:<>@BCEHI,OQUVX[_fkl 0AA@8 w ʚ;3ʚ;g4FdFdE  0ppp@ <4dddd@w 0tP%E <4!d!d@w 0tP%E  80___PPT10 ?  %,Tax Increment FinancingtA  Bottoms-Up Approach to Financing Community Development;; The ConceptA state authorized, locally driven funding mechanism for community and economic development A methodology for eliminating blight and infrastructure deficiencies A strategy for stabilizing, diversifying and expanding the tax base in critical areas  What is Tax Increment Financing?FTIF is authorized under 7-15-4282, MCA and enables communities to direct property taxes that accrue from new development within a designated blighted and/or infrastructure-deficient geographic area to various development activities. A base year is established from which incremental increases in property values are measured.,GZ +The CalculationBase Year Value Taxable Valuation x Mill Value = Taxes Collected Directed to All taxing Bodies (Local Gov, Schools, State) Tax Increment Value Incremental Taxable Valuation x Mil Value = Incremental Taxes Collected All Directed to Tax Increment Program (except University Levy)Z1Z;ZZHZ?Z1;H?   Other Important Provisions-Provisions for Returning Funds Sunset Bonding !It Takes a Big Private Investment"" Assume: $1,000,000 dollars of New Development Assume: Class 4 property @3.01% (2007) Assume: A mill levy of .500 Increment Value = $15,050  ApplicationssUrban Renewal Districts Industrial Districts Technology Districts Aerospace Transportation and Technology Districts  The StepsIdentifying a District Determining Blight or Infrastructure Deficiency Preparing a Plan Determining Conformity with the Growth Policy Providing for Public Notice and Hearing Adopting the Plan Notifying the DOR and other Taxing BodiesP (Allowable Uses of Funds (Public Purpose)Land Acquisition Demolition and Removal of Structures Relocation Planning and Analysis General Redevelopment Activities Improving or Connecting to Infrastructure/Neighborhood Planning Provision (Urban Renewal)00(^Enables a Municipality to Focus on Neighborhood Planning Efforts through the undertaking of  neighborhood development programs Allows for Annual Evaluation of Renewal EffortsSome Pitfalls to ConsiderhThe  Slush Fund Approach  What s our plan& ..really? Overall Affects on the Tax Base  Are we really improving our community condition? Changing Property Tax Climate in the State A Successful TIF ProgramProvides Incentives to Businesses to locate in areas of greatest need Improves the overall tax base Enables locally driven economic development Creates economic vitality!"Creating an Urban Renewal DistrictzEstablish Blight (42-15-4202, MCA)  Identifying the Urban Renewal Area Identify the Need for Redevelopment in Response to Blight (43-15-4203, MCA) Develop a Workable Urban Renewal Program ##RWhat is Blight?  What are We Addressing?**0|Public Health Issues Property Value Depreciation Public Safety Issues Community Growth Substandard Housing Traffic Problems .|ZZ|$#Preparing an Urban Renewal Plan 1|Prepare an Urban Renewal Plan which identifies the specific boundaries of the district Include the TIF provision in the Plan}}(-Determining Conformity with the Growth Policy..$Submit the Proposed Plan to the Planning Commission to determine conformity with Growth Policy (60 Day Turnaround) (NOTE: There must be a Growth Policy in place!) (more)$P PHolding a Public Hearing1gSet a Public Hearing Mail Hearing Notice to ALL property owners in the District Hold the Public Hearinghh%Adoption Requirements14Finding of Blight  by Resolution which finds that: (1) one or more blighted areas exist in such municipality; and (2) the rehabilitation of such areas is necessary in the interest of the public health, safety, morals, or welfare of the residents of such municipality. &4%%%!Adoption Requirements (continued)Adoption of the Urban Renewal Plan  by Ordinance A Resolution of Blight must be in place The plan must conform to the Growth Policy*2S2%S!""Department of Revenue Notification##1(7-15-4284 MCA requires that a certified copy of each urban renewal plan, industrial district ordinance, technology district plan, or aerospace district ordinance or an amendment to any of them containing a tax increment provision with the department of revenue each of the affected taxing bodies6==,Modification of Urban Renewal Project plan. -+An urban renewal project plan may be modified at any time by the local governing body. By Ordinance By the process established in the state statute for Urban Renewal Plans By a procedure set forth in the plan itself*WZZW& Program Management2Local Governing Body Separate Urban Renewal Agency#Developing an Urban Renewal ProgramPrograms Mechanisms ProjectsProgramssInfrastructure Code Upgrades Safety ADA Economic Development/Job Creation Historic Preservation Landscaping HousingBZ ZLZ L Mechanisms@Grants Interest Write-Downs Revolving Loans Technical Assistance ProjectsiSpecific Activities Initiated Externally or Internally Must be in Conformance with the Urban Renewal Plan'!*Creating a TIF Industrial District (TIFID)TIF Districts can be created in areas that Consist of a continuous area with an accurately described boundary; Are zoned for light or heavy industrial use in accordance with the area master planning document; (more)&,,+%&TIFID s (Continued) Are deficient in infrastructure improvements for industrial development; and Have as their purpose the development of infrastructure to encourage the growth and retention of secondary, value-adding industries. ("#Creating a Technology District$#(Technology districts: Must consist of a continuous area with an accurately described boundary that is large enough to host a diversified tenant base of multiple independent tenants; Must be zoned for use in accordance with the area growth policy, as defined in 76-1-103; B`} 0)#"Technology District (cont.) ##(?Must, prior to creation, be found to be deficient in infrastructure improvements necessary for technology development; Must, prior to creation, have in place a formally adopted comprehensive development plan; and May not be designed to serve the needs of a single district tenant or group of non-independent tenants. &@P0o*$B Creating an Aerospace Technology and Transportation DistrictsC(B$Aerospace Districts must Consist of a continuous area with an accurately described boundary; Be zoned for use in accordance with the area master planning document; (More)( ,&Aerospace Districts (continued)Found to be deficient in infrastructure improvements for industrial development; and Have as their purpose the development of infrastructure to encourage the location and retention of aerospace transportation and technology infrastructure development projects in the state. 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What are We Addressing? Preparing an Urban Renewal Plan.Determining Conformity with the Growth PolicyHolding a Public HearingAdoption Requirements"Adoption Requirements (continued)#Department of Revenue Notification-Modification of Urban Renewal Project plan. Program Management$Developing an Urban Renewal Program Programs Mechanisms Projects+Creating a TIF Industrial District (TIFID)TIFIDs (Continued)$Creating a Technology District#Technology District (cont.) C Creating an Aerospace Technology and Transportation Districts Aerospace Districts (continued)  Fonts UsedDesign Template Slide Titles! 8@ _PID_HLINKSA8http://data.opi.state.mt.us/bills/mca/76/1/76-1-103.htm$_ 0Jeff BollmanJeff Bollman  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~Root EntrydO)Current UserSummaryInformation(PowerPoint Document(DocumentSummaryInformation8