Fiscal Note
The proposed ordinance repeal and recreation allows for an increase to the Tax Incremental Financing (TIF) application fee from 0.5% of the amount of the TIF assistance requested to 1.5% of the amount of TIF assistance requested. Application fees are deposited as revenue in the relevant Tax Increment District (TID). As an example, if an applicant requests $1.0 million in TIF assistance, the current application fee is $5,000. The proposed ordinance change would increase the application fee to $15,000. The ordinance change also makes the distinction between preliminary review of a draft TIF application and a formal TIF application and when the application fee will be assessed.
Title
Repealing and recreating Section 4.28 of the Madison General Ordinances related to TIF Applications to update TIF application fee and application process.
Body
DRAFTER’S ANALYSIS: This ordinance revision codifies the existing practice of City TIF staff providing a free preliminary review of a TIF application from a developer before requiring payment of the TIF application fee required by ordinance. The revision also specifies that developers will receive one free preliminary review of a TIF application for a project, and subsequent applications for the same project require payment of the TIF application fee. Finally, the revision increases the TIF application fee from half a percent (0.5%) of the TIF assistance requested to one and one-half percent (1.5%) of the TIF assistance requested.
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The Common Council of the City of Madison do hereby ordain as follows:
1. Section 4.28 entitled “TIF Application Fee” of the Madison General Ordinances is repealed and recreated as follows:
“4.28 - TIF Application Fee.
(1) Definitions. For purposes of this Section, the following terms have the following meanings:
“Applicant” means a person, group of people, or entity seeking tax increment financing...
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