The TIF Clause Samples

The TIF. On March 16, 2015, the City approved Ordinance No. RD-3075, which created a TIF redevelopment district for a portion of the Project Site (excluding the Phase 2 area discussed above), finding the Project Site to be eligible for TIF as a "conservation area." The TIF for this Project would be based solely upon 94% of the increased (or "incremental") real property taxes created by the Project after a "base value" which is the greater of (i) the January 1, 2015 tax value of the TIF District property, or (ii) an Agreed Upon Adjusted Base Value of $11,844,455. This effectively guarantees a minimum "base value" for TIF purposes, regardless of the outcome of any tax appeals currently being pursued on the Project Site. The TIF will not include any increases in sales taxes - those increased sales tax revenues would be retained by the City and other taxing jurisdictions. However, subject to the limitations described below, Developer would have access to the incremental property tax revenues that Developer could use to reimburse itself for eligible Project expenses or "TIF Improvement Costs", which are specified on Exhibit H. The TIF will be pay-as-you-go only for a period of 20 years, with no opportunity to issue bonds, and it will be limited in other ways: a. In all events the maximum reimbursement from TIF proceeds to Developer will capped at $12,341,460 (the "TIF Cap"). b. Additionally, in the event that Developer either (1) elects to build the Alternative Phase 3, or (2) elects to build the Full Phase 3 but fails to complete on time (by December 31, 2021), then the TIF Cap shall automatically be reduced by $1.8M (to $10,541,460). c. In addition, if Developer shall miss any of the other Performance Milestones set forth in Exhibit I (and fail to show cause as described in Section 2.05 of the Agreement), then the TIF Cap shall be reduced by $1.5M. d. Finally, in an effort to ensure that the City is not offering more incentives for the Project than would be reasonable under the circumstances, the TIF incentives provided in this Agreement have been offered in accordance with an Equity IRR Formula (attached to the Agreement as Exhibit K), projecting an equity internal rate of return for the Developer which shall not exceed 16%. If Developer's rate of return exceeds that 16% number, then the parties agree in Section 3.04(c)-(e) of the Agreement that the TIF Cap shall be reduced in order to render a internal rate of return for the Developer.

The TIF. On March 24, 2025, the City approved Ordinance No. RD-3482, which created a TIF redevelopment district for the Project Site, finding the Project Site to be eligible for TIF as a "conservation area." The TIF for this Project would be based solely on the increased (or "incremental") real property taxes created by the Project after a 2025 "base year". The TIF will not include any increases in sales taxes – if any. Subject to the limitations described below, for a period of 20 years, Developer would have access to 90% of the incremental property tax revenues that Developer could use to reimburse itself for eligible Project expenses or "TIF Improvement Costs", which are specified on Exhibit E.

The TIF. On August 17, 2015, the City approved Ordinance No. RD-3079, which created a TIF redevelopment district for the Project Site, finding the Project Site to be eligible for TIF as a "conservation area." The TIF for this Project would be based solely on the increased (or "incremental") real property taxes created by the Project after a 2015 "base year". The TIF will not include any increases in sales taxes – if any. Subject to the limitations described below, for a period of 20 years, Developer would have access to 100% of the incremental property tax revenues that Developer could use to reimburse itself for eligible Project expenses or "TIF Improvement Costs", which are specified on Exhibit E. The TIF will be pay-as-you-go only for a period of 20 years, with no opportunity to issue bonds, and it will be capped at $6,777,535 (the "TIF Cap"), which TIF Cap is subject to adjustment as described in the sentences that follow below. In an effort to ensure that the City is not offering more incentives for the Project than would be reasonable under the circumstances, the TIF incentives provided in this Agreement have been offered in accordance with an Equity IRR Formula (attached as Exhibit G), projecting an equity internal rate of return for the Developer which shall not exceed 16%. If ▇▇▇▇▇▇▇▇▇'s rate of return exceeds that 16% number, then the parties agree in