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Vandalia TIF #1 District
Best Practices in Determining TIF Approval
1. A TIF Advisory Committee will be made up of a member(s) of the taxing bodies, who shall not live within a TIF or be receiving TIF incentives, to review the TIF requests with one City Alderman serving on the Advisory Committee prior to the City Council’s approval of a TIF grant.
This committee serves as guidance only but is imperative to build trust that TIF is benefiting Vandalia and its taxpayers.
2. The “but for” provision is applied appropriately to each individual TIF request.
3. Each project has merit to enhance the overall economy by spurring growth through job creation or an increase in equalized assessed evaluation.
4. Projects submitted by taxing bodies requesting financial assistance must be used for such purposes as permitted by the TIF Act.
5. The City shall use its best efforts never to commit more than 25 percent of the total project cost through a TIF grant unless the project brings many jobs or a service or amenity not otherwise available in the City.
6. If there arc not viable projects to meet one hundred percent of the revenue collected through the TIF #I District according to said principles, the remaining revenue will be returned to Fayette County who will distribute to the taxing bodies annually.
7. TIF Advisory Committee recommended to and City Council approved a claw-back provision to be added to each TIF Agreement including the following: WHEREAS, the TIF Applicant defaults on the obligations and/or the building becomes vacant or is sold within 5 years from the signing of this Agreement, the TIF Applicant shall return to the City a sum of 20 percent of the total amount of increment granted from the City to the TIF Applicant for every year of the first five years of this Agreement in which obligations arc not met. If a default occurs within one (I) year of the signing of this Agreement, the TIF Applicant will return I 00 percent to the City. If a default occurs between one (I) year and two (2) years from the signing of this Agreement, the TIF Applicant will return 80 percent to the City. If a default occurs between two (2) years and three (3) years from signing of this Agreement, the TIF Applicant will return 60 percent to the City. IF a default occurs between three (3) years and four (4) years from the signing of this Agreement, the TIF Applicant will return 40 percent to the City. If a default occurs between four (4) years and five (5) years from signing of this Agreement, the TIF Applicant will return 20 percent to the City.v