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File #: 29485    Version: Name: TIF Policy Introduction Reso
Type: Resolution Status: Passed
File created: 3/13/2013 In control: COMMON COUNCIL ORGANIZATIONAL COMMITTEE
On agenda: 2/25/2014 Final action: 2/25/2014
Enactment date: 2/28/2014 Enactment #: RES-14-00160
Title: Accepting the revised TIF Policy approved by the Economic Development Committee on February 20, 2013 for Common Council consideration and adoption. Adopting the revised TIF Policy.
Sponsors: Scott J. Resnick, Jill Johnson, Mark Clear, Paul R. Soglin, Shiva Bidar-Sielaff, Chris Schmidt, Sue Ellingson, Michael E. Verveer
Attachments: 1. TIF Underwriting Policy - ADOPTED.pdf, 2. TIF Goals Objectives and Process - ADOPTED.pdf, 3. TIF Goals Objectives and Process - TIF Policy Review Com FINAL.pdf, 4. 2014 TIF Matrix - AdHocpolicy_EDC_Adoptedpolicy.pdf, 5. Legistar #30913 - TIF Policy Review Ad Hoc Committee - Reports and Communications, 6. TIF Policy by EDC Feb 20 2013.pdf, 7. Olver TIF Matrix Jan 15 2014.pdf, 8. TIF Underwriting Policy - TIF Policy Review Com FINAL.pdf, 9. Comparison Matrix of Existing TIF Policy to EDC Proposal, 10. Link to Legislative File No. 32945, 11. AMENDMENTS TIF Goals Objectives and Process - TIF Policy Review Com FINALx.pdf, 12. AMENDMENTS TIF Underwriting Policy - TIF Policy Review Com FINAL.pdf, 13. Pastor e-mail 2014 02-04.pdf, 14. TIF Underwriting Policy - Council President's_TIF Policy Review Com.pdf, 15. TIF Goals Objectives and Process - Council President's_TIF Policy Review Com.pdf, 16. Version 1.pdf, 17. Version 2.pdf
Date Ver.Action ByActionResultAction DetailsWatch
2/25/20141 COMMON COUNCIL Adopt the Following Amendment(s)Pass Action details Not available
2/25/20141 COMMON COUNCIL Adopt the Following Amendment(s)Pass Action details Not available
2/25/20141 COMMON COUNCIL Adopt the Following Amendment(s)Pass Action details Not available
2/25/20141 COMMON COUNCIL Adopt the Following Amendment(s)Pass Action details Not available
2/25/20141 COMMON COUNCIL Adopt the Following Amendment(s)Pass Action details Not available
2/25/20141 COMMON COUNCIL Adopt As AmendedPass Action details Not available
2/4/20141 COMMON COUNCIL ORGANIZATIONAL COMMITTEE RECOMMEND TO COUNCIL TO ADOPT - REPORT OF OFFICERPass Action details Not available
1/27/20141 BOARD OF ESTIMATES Return to Lead with the Recommendation for ApprovalPass Action details Not available
1/21/20141 COMMON COUNCIL ReferPass Action details Not available
1/21/20141 COMMON COUNCIL ReferFail Action details Not available
1/16/20141 COMMON COUNCIL Re-refer  Action details Not available
1/15/20141 ECONOMIC DEVELOPMENT COMMITTEE Return to Lead with the Following Recommendation(s)Pass Action details Not available
12/20/20131 TIF POLICY REVIEW AD HOC COMMITTEE (ended 4/2014) (inactive)    Not available Not available
12/17/20131 TIF POLICY REVIEW AD HOC COMMITTEE (ended 4/2014) (inactive) Re-refer  Action details Not available
12/9/20131 TIF POLICY REVIEW AD HOC COMMITTEE (ended 4/2014) (inactive)    Not available Not available
11/25/20131 TIF POLICY REVIEW AD HOC COMMITTEE (ended 4/2014) (inactive)    Action details Not available
11/15/20131 TIF POLICY REVIEW AD HOC COMMITTEE (ended 4/2014) (inactive) Referred  Action details Not available
11/8/20131 TIF POLICY REVIEW AD HOC COMMITTEE (ended 4/2014) (inactive)    Not available Not available
11/4/20131 TIF POLICY REVIEW AD HOC COMMITTEE (ended 4/2014) (inactive) Referred  Action details Not available
10/3/20131 TIF POLICY REVIEW AD HOC COMMITTEE (ended 4/2014) (inactive)    Action details Not available
9/19/20131 TIF POLICY REVIEW AD HOC COMMITTEE (ended 4/2014) (inactive)    Not available Not available
8/29/20131 TIF POLICY REVIEW AD HOC COMMITTEE (ended 4/2014) (inactive) Re-refer  Action details Not available
8/1/20131 TIF POLICY REVIEW AD HOC COMMITTEE (ended 4/2014) (inactive) Re-refer  Action details Not available
7/9/20131 TIF POLICY REVIEW AD HOC COMMITTEE (ended 4/2014) (inactive)    Not available Not available
4/29/20131 TIF POLICY REVIEW AD HOC COMMITTEE (ended 4/2014) (inactive) Refer  Action details Not available
4/8/20131 BOARD OF ESTIMATES ReferPass Action details Not available
3/20/20131 TIF POLICY REVIEW AD HOC COMMITTEE (ended 4/2014) (inactive) Refer  Action details Not available
3/20/20131 TIF POLICY REVIEW AD HOC COMMITTEE (ended 4/2014) (inactive) Refer  Action details Not available
3/19/20131 COMMON COUNCIL ReferPass Action details Not available
3/13/20131 Economic Development Division Referred for Introduction  Action details Not available
Fiscal Note
The resolution accepts the recommendations of the Economic Development Committee regarding revisions to the city’s policies on use of tax incremental financing (TIF) for development projects.

Under state law, the city is authorized to establish tax increment districts (TID) based on blight conditions and an analysis that development in the district would not occur “but for” creation of the district. Property tax revenue generated by the growth in property values after the district is established are not available to the taxing jurisdictions for services, but are instead made available for grants and loans for development projects and infrastructure expenditures in support of additional development. Districts can be created for a maximum duration of 27 years, with project expenditures allowed within the first 22 years. Districts must be closed when all planned expenditures have occurred and any debt issued to finance those expenditures has been retired.

Approval of tax increment districts and a plan for expenditure of property tax revenues generated by the district is made by a joint review board consisting of representatives from the affected taxing jurisdictions (i.e., city, school district, county and technical college district). Actual expenditure of revenues generated within a tax increment district is subject to approval by the Common Council primarily through adoption of projects in capital budgets.

The recommendations call for added flexibility in defining eligible projects (the city’s “but for” test -- the development would not occur “but for” the tax incremental financing) and determining the amount of tax increment generated by a development that can be allocated to project financing (set at 50 percent under the current policy - the “50 percent” rule). Changes include incorporating any competing offers for project development from other communities (both adjacent to Madison and in the broader regional and national context) into th...

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