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Full Agenda Packet CITY OF JANESVILLE CITY COUNCIL SPECIAL MEETING (STUDY SESSION) MONDAY, MARCH 8, 2010 5:00 P.M. (Municipal Building Council Chambers - Room #417) 1. Call to Order. 2. Roll call. 3. Review of economic development tools and strategies and discuss future economic and development approaches. 4. Matters not on the agenda. 5. Motion to adjourn. Janesville City Council Economic Development Study Session March 8, 2010 Economic Development Study Session Agenda Economic Development Overview Goals, Processes, Results ? Economic Development Financing ? Janesville’s TIF Policies Tax Incremental Financing -Janesville’s Policies ? Risk Considerations ? Recommendations ? Discussion ? Economic Development Overview “A Business Model” Goal:To stimulate private sector investment ? in a community to create jobs and increase the tax base. Our Objectives are to provide public sector ? support in : Economic Diversification ? Job Growth and Preservation ? Building the Local Tax Base ? Why? Primary Source of City Revenues for Growth! Economic Development:Process of bringing ? new dollars (private sector investment) into a community Private Sector Investment:Creates wealth ? and jobs = Community Cash flow Community Cash Flow:Creates tax base ? and fee generation Taxes & Fees = Programs & Services ? Bottom Line: Fundamental to a community’s ? survival and growth. “Economic Development Reality Check” Process of elimination ? A long term investment, not an expense. ? Competition is real and aggressive. ? Profitability supersedes quality of life. ? Perception is reality. ? Janesville is impacted by global economics and industry shifts ? Thinking from your customer’s perspective: a fundamental consideration What do Janesville companies need from the City? How can we effectively compete? What will our residents support? (risk factors) What does Economic Development Encompass? Planning and Land Use ? Tax Policy, State and Local ? Workforce ? Infrastructure ? Marketing, Sales and Public Relations ? Negotiations, Mediation ? Research ? Finance ? Incentives ? Why Do Companies Locate? “The same things that attract new companies also retain existing ones” Labor skills/availability ? Tax and regulatory climate (value vs. cost) ? Proximity to markets/suppliers ? Cost of doing business ? Strong and stable political leadership ? Adequate infrastructure ? 60 minutes from an airport ? Quality of life issues ? Incentives ? Economic Development Marketing Competitive Opportunity: Communicate Janesville’s attributes on the following: The Right Product, People & Place ? Value added vs. Cost ? Differentiation/Unique Selling Position ? Intangibles vs. Tangibles ? Brand = Perception plus Experience/Observation ? Business Retention/Attraction ? Targeted Marketing ? Data Intensive ? Economic Development Strategies Business Retention & Expansion ? Business Attraction ? Entrepreneurship ? Workforce Development ? Regionalism ? Rock County 5.0 Update Funds used for implementation purposes, ? only. No staffing or overhead expenditures. 18 person Advisory Board ? Past budgets = $10,000/yr. ? Branding Goal = “Speed To Market” ? (customer service) Putting the data infrastructure together. ? Strategies focus on business attraction, ? retention, entrepreneurship, workforce and real estate development. 10 Role of Incentives “No one wants to pay sticker price” Incentives are tie breakers –incentives do not make ? a bad deal good. Available to existing, growth companies as well as ? new ones. Unfortunately are reality ? Should be a win/win, an evaluation of risk/return ? Two Types of Incentives ? Direct Financial = TIF, SBA, Tax Credits etc. ? Indirect Financial = regulatory/permit timelines, ? workforce services and “certified sites”. Economic Development Financing “The Public Sector Role” Objectives ? Reduce the risk of private sector investment ? Increase cash flow for growing companies ? Reduce the potential failure due to financing ? issues. Create and/or retain jobs ? Provide access to capital ? Public Sector Financing Role “Continued” Goal: Invest in projects or business ventures where the economic and social benefits outweigh the financing risk. Benefits: Jobs, tax revenues, neighborhood ? redevelopment etc. Should not take the place of private sector ? financing. Allow the company to keep more cash on hand. ? Reduce the perceived risk of the private sector. ? Financing Challenges For Companies Growth requires cash, both access and ? affordability To much debt, not enough equity ? Commercial banks: short term lenders ? Goal: Seek to match the term of the loan to ? the life of the asset. Janesville’s TIF Policies Source:Council Policy Statement #61, Revised 11/14/2006 Creation of New Industrial TIFs on Green Field Sites. Objective: Business Attraction/Expansion ? Eligible businesses –manufacturing firms and supporting ? businesses. Must have at least $1.0 million in construction and the ? creation/retention of at least 50 jobs. Recover its costs within eight years. ? Use up to two years of projected property taxes from each ? green field TIF project to capitalize a Development Fund which can be used to assist a company when no increment is created. Janesville TIF Polices Continued Council Policy Statement #61 Creating of New TIFs on Greenfield Sites Objective: Business Retention/Expansion ? Minimum size project, $500,000 increase in ? property value and the creation of a minimum of 10 jobs. City costs to be repaid within 10 years ? Can use two years of projected property ? taxes for a Development Fund as noted on previous slide Janesville TIF Policies Continued #3 Council Policy Statement #61 TIF and Downtown Redevelopment Policies When ever possible, the City will use non-TIF funding ? sources to purchase blighted buildings prior to the creation of a TIF District. The City may use up to 15 years of property taxes for ? development incentives. The City may use up to 5 years of property taxes to ? capitalize a downtown redevelopment fund that would focus on smaller projects. Current/Active TIF Policies February 2010 Forgivable working capital loan of up to 10 ? years of a new construction increment. Forgivable working capital loan based on ? leasing industrial space of $1,000/square foot. This loan cannot exceed $10,000 per job created. Additional TIF Information Trends and Examples Janesville TIF decisions are within legal boundaries ? under state law. Communities like Madison, WI only use TIF for ? downtown redevelopment based on financial need. Future industrial property in Wisconsin is expected to ? be reassessed to lower values. TIF requests based on employment only will continue ? to increase. Wisconsin TIF Survey Summary July 2009 Survey surveyed the use of TIF incentives in 13 Wisconsin cities including Janesville. Major results are summarized as follows: TIF loans vs. grants: 6 of 13 cities preferred loans, Janesville and ? Wausau use grant/loans, Green Bay uses grants, rest is on a case by case basis. Loan interest rates: most handle on a case by case basis. Janesville ? and Green Bay charge their cost of money, Eau Claire and Madison only charge interest if the TIF agreement is broken. TIF incentives for job creation: 9 of 13 cities do not consider this. ? Janesville and Eau Claire tie jobs to forgivable loans. Priorities: job creation, blight removal, industrial development & ? redevelopment Developer focused TIFs vs. city/end user focused TIFs. ? Current Janesville TIF Concerns TIF: major focus –job creation, little evaluation of ? risk Perceived as unlimited source of funding. ? Increment funding job creation vs. non-increment ? generated job creation Economic Development Financing Suggestions Creation of a Redevelopment Authority and Housing ? Authority. Use of TIF and Community Reinvestment dollars ? from banks to create small business revolving loan fund. Rock County Business Incentive Fund ? Consider the level of financial need as well as job ? creation when making TIF incentive decisions. Public /Private partnerships with banks for downtown ? redevelopment Interest on TIf loans should reflect the current market ? rates, not the city's cost of money. Discussion: City Council’s Role in Janesville’s Economic Development Program Suggested Discussion Points: Define incentive policy guidelines? ? Define parameters for staff to act on its own? ? ID of economic development priorities and ? concerns? Provide direction on staff policy ? recommendations and specific proposals? Receive staff updates on economic ? development projects, trends and issues as needed? 23 TIF Policy Issues and Recommendations 1. Should TIF be the predominate tool in Janesville’s economic development program? Staff is seeking direction for the following: Direct staff to evaluate other economic ? development financing mechanisms including redevelopment authorities, housing authorities etc. Development of a Rock County Business ? Incentive Fund program. TIF Policy Discussion Continued #2 2. Is job creation/retention paramount or should the project’s financial risk also be considered and at what level? Examples would include: The incentive being considered is greater than the estimated ? new tax increment. The project only involves leased space and job creation, there ? is no new tax increment being generated. Recommendation: Job creation is still a very important factor, however a risk evaluation should also considered. Thus, the following questions should be asked: What are the financial risks to the TIF and City? ? Will the project increase the City’s tax base? ? TIF Policy Discussion #3 Staff Recommendations 3. Should a higher level of risk be acceptable to create more jobs? Recommendation: Financial risk should be recognized but job creation should be made a higher priority. 4. How should Janesville respond to TIF requests, particularly in the downtown area that do not expand the tax base or have significant job creation but positively impact this area? Recommendation:Continue to pursue public/private sector relationships with local banks to share the risk and reduce the TIF expenditure. TIF Discussions #4 Staff Recommendations Continued 5.Should downtown TIF loans be made under different conditions than industrial projects , particularly where there is no significant primary job creation. Recommendation:These loans should be made on a financial gap basis utilizing the “but for clause" and be considered for . “game changing” projects 6. Should Janesville continue to use TIF to support such organizations as the Janesville Design Center or restrict the use to projects that include job creation or tax base growth? Recommendation:Due to the restricted availability of funds, TIF should be used for job creation and/or for tax base growth. Comments and Discussion Questions ? Policy Concerns ? Policy Modifications ? New Ideas ? Other ? CITY OF JANESVILLE Policy No. 61 Page 1 of 12 COUNCIL POLICY STATEMENT Date Issued 6/13/1994 Revised 10/28/2003 General Subject: Administration Revised 11/14/2006 Effective Date 11/14/2006 Specific Subject: Economic Development Cancellation Date _________ Supersedes No. ___________ I. Overall Goal : To diversify the economic base of the City of Janesville through the retention and expansion of existing businesses, the attraction of growing industrial and large regional service sector employers, and the redevelopment of the downtown and older commercial areas in order to create new employment opportunities for Janesville's citizens and which will expand the City's tax base. II. Primary Objectives : 1. To implement a high profile proactive approach to local economic development through a public/private partnership. 2. To provide a range of development incentives as needed to retain local employers and to stimulate their expansion and to facilitate the redevelopment and revitalization of the downtown and older commercial areas. 3. To attract smaller, fast growing manufacturing and regional office employers in business sectors with projected growth. 4. To provide both existing and new employers with a consistent set of guidelines for the City Administration's approach to incentive programs for projects located on private and/or publicly owned industrial sites. 5. To facilitate the use of federal and state development incentive programs and grants for local development projects. 6. To maximize the effectiveness of the City's limited resources in stimulating job-creating development projects. CITY OF JANESVILLE Policy No. 61 Page 2 of 12 COUNCIL POLICY STATEMENT Date Issued 6/13/1994 Revised 10/28/2003 General Subject: Administration Revised 11/14/2006 Effective Date 11/14/2006 Specific Subject: Economic Development Cancellation Date _________ Supersedes No. ___________ 7. To compete on an equal basis with other communities for an increased share of new development projects. III. Implementation : The City Administration shall be responsible for implementing this economic development policy. The Economic Development Agency will have a lead role in facilitating development projects and coordinating efforts with the private sector. As development projects arise, the Administration shall have the authority to negotiate the types and level of development incentives needed in accordance with the provisions of this policy. The Administration shall regularly inform the City Council of the progress of negotiations. Both the City Administration and the City Council shall maintain the confidentially of all such negotiations. The City Council shall have the final authority to review and approve all negotiated agreements and shall act on them in a public meeting. IV. Industrial Development Policy : The City of Janesville shall concentrate its industrial development efforts on retaining its existing industrial firms and facilitating their expansion. In addition, the City shall work with private sector and regional marketing initiatives to attract new employers and shall utilize the available development programs to remain competitive in the attraction of new industrial employers. This industrial development policy acknowledges that in many cases, successful development projects can occur without any public sector involvement. Consequently, the City Administration shall market equally both private and public development sites, and should utilize public incentive programs only when needed to successfully accomplish economic development objectives. The following criteria shall be used to guide decisions involving the use of industrial development incentives: CITY OF JANESVILLE Policy No. 61 Page 3 of 12 COUNCIL POLICY STATEMENT Date Issued 6/13/1994 Revised 10/28/2003 General Subject: Administration Revised 11/14/2006 Effective Date 11/14/2006 Specific Subject: Economic Development Cancellation Date _________ Supersedes No. ___________ A. Project Facilitation The City of Janesville's Economic Development Agency will be available to assist local industries and new industrial prospects to facilitate development projects. Assistance can take the form of providing information on available industrial sites and buildings; determining the necessary permitting for proposed projects; packaging development financing; or helping firms complete proposals for state and federal development assistance. In addition, the Agency will coordinate the City's response to specific requests for development incentives such as the sale of City-owned industrial sites or the creation of new industrial TIF Districts. All requests for development incentives shall be made in writing. B. Financing 1. Industrial Revenue Bonds- The City of Janesville will consider the adoption of initial resolutions in support of eligible industrial projects where the project financed will have a positive impact on the City's tax base and employment opportunities and where the company using the bond proceeds is shown to be financially secure. Applicants for the use of industrial revenue bonds shall present evidence of financial resources sufficient to cover the costs involved. 2. Federal/State Programs- The Economic Development Agency will provide assistance to existing industries and industrial prospects in identifying federal and state financing programs. Where appropriate, the Agency can take a lead role in developing a financing package for development projects and can help the firm complete the necessary application materials. C. Industrial Parks/TIF Districts 1. Existing Industrial Areas Janesville shall continue to actively promote existing industrial CITY OF JANESVILLE Policy No. 61 Page 4 of 12 COUNCIL POLICY STATEMENT Date Issued 6/13/1994 Revised 10/28/2003 General Subject: Administration Revised 11/14/2006 Effective Date 11/14/2006 Specific Subject: Economic Development Cancellation Date _________ Supersedes No. ___________ parks and smaller sites for businesses that do not need additional incentives for expansion projects. Both public and privately owned sites will be treated equally, with the site location decision left to the business planning the development project. By promoting the use of existing sites that are currently served with public utilities, the overall cost of development to the City can be minimized. a) In order to enhance and make marketable privately owned industrial and commercial properties, the City of Janesville, upon written request, may install water mains, sanitary sewers, storm sewers, and roadways as improvements to properties fronting on public streets. Payment for the improvements requested shall be as follows: 1) A ten (10) year deferment at the interest rate prevailing in the year in which the improvement was ordered, becoming due on sale, use, or in ten (10) years whichever comes first. A business which purchases a development parcel from the original owner granted the ten (10) year deferment, may elect to make payment for improvements on a five (5) year payment plan. 2) Interest payments will be delayed until payment of the special assessment. 3) If a property is split without platting, the amount of special assessments shall be apportioned to the resulting parcels. b) In order to improve the marketability of vacant industrial, all owners are encouraged to maintain them in a presentable condition. c) The City may offer to buy privately owned and industrially zoned development sites at the fair market value as CITY OF JANESVILLE Policy No. 61 Page 5 of 12 COUNCIL POLICY STATEMENT Date Issued 6/13/1994 Revised 10/28/2003 General Subject: Administration Revised 11/14/2006 Effective Date 11/14/2006 Specific Subject: Economic Development Cancellation Date _________ Supersedes No. ___________ appraised by the City Assessor, or by an independent appraiser, mutually agreed upon by both parties. If possible, the cost of the independent appraisal will be shared equally by both parties. 2. New Industrial TIF Districts a) The City of Janesville will only consider the creation of an industrial TIF District where a manufacturer or regional office developer is committed to construct a major development project and where the project would not occur without development incentives. The use of industrial TIF districts will be considered for both existing Janesville industries and new industries considering a Janesville location. The use of TIF districts to provide direct financial assistance to industrial projects shall be guided by the following criteria: * Does the proposed project conform to existing plans and land use regulations? * Does the proposed project help to implement the City's economic development strategy? * Is the City's assistance needed in order to make the project feasible? * Is the business financially stable and likely to continue to grow and create jobs for Janesville residents? * Will the cost of the proposed development incentives exceed the projected tax increments generated by the project over the life of the TIF District? * Will the developer guarantee that tax increments will be CITY OF JANESVILLE Policy No. 61 Page 6 of 12 COUNCIL POLICY STATEMENT Date Issued 6/13/1994 Revised 10/28/2003 General Subject: Administration Revised 11/14/2006 Effective Date 11/14/2006 Specific Subject: Economic Development Cancellation Date _________ Supersedes No. ___________ available for all TIF costs that are actually incurred? b) Where the City is asked to develop a Tax Increment District for a major development project, the City will consider including additional acreage within the TIF district to provide suitable sites for smaller, growing firms which need development incentives in order to expand. c) Only the following types of business establishments will be eligible for development incentives within a TIF Industrial Park: * Manufacturing Firms- As defined under Wisconsin Statutes Section 70.11(27). "Manufacturing means the producing, assembling, fabricating, making, or milling by machinery and equipment, a new article or components with a different form, use, and name by a process popularly regarded as manufacturing and as further defined in ss. 70.995 (1) and (2)." * Support and service activities directly related to and used in conjunction with manufacturing operations having the same principal user, including but not limited to management and administration, data processing, research and testing, storage and distribution, but not including sale to ultimate consumers for personal, family, or household consumption. * Storage, distribution, and wholesaling of manufacturing products and materials used in manufacturing, but not including retail sale of products. * Selected services businesses like industrial laundry facilities, regional corporate offices, financial transaction CITY OF JANESVILLE Policy No. 61 Page 7 of 12 COUNCIL POLICY STATEMENT Date Issued 6/13/1994 Revised 10/28/2003 General Subject: Administration Revised 11/14/2006 Effective Date 11/14/2006 Specific Subject: Economic Development Cancellation Date _________ Supersedes No. ___________ processing centers, and manufacturing testing facilities. d) The cost of land acquisition, internal streets, water and sewer mains, storm sewers, natural gas and electric lines, development site improvement costs, necessary and related street and utility improvements outside of the TIF district, industrial park landscaping, street lighting, financing incentives (like interest rate write-downs, forgivable loans, etc.), employee training costs, real estate sales commissions, City borrowing costs, planning and administration costs, TIF marketing costs, and other expenses related to implementing the economic development strategy may be financed out of TIF increments, in accordance with the TIF project plan. e) In return for the incentives offered by the City through the creation of the Industrial TIF District, the business receiving the incentives shall guarantee an annual property tax payment sufficient to allow the City to fully recover its TIF investment within the time period set by the Council. f) The business receiving the development incentives shall provide the City Manager with sufficient financial information to document that the business is financially stable. g) The Economic Development Agency will work with the industry to determine the package of development incentives necessary to complete the development project. The development incentive package must be approved by the City Council. h) Standards for Incentives – Greenfield Sites 1) The City of Janesville will only consider the creation of a new TIF industrial park on vacant land which is suitable CITY OF JANESVILLE Policy No. 61 Page 8 of 12 COUNCIL POLICY STATEMENT Date Issued 6/13/1994 Revised 10/28/2003 General Subject: Administration Revised 11/14/2006 Effective Date 11/14/2006 Specific Subject: Economic Development Cancellation Date _________ Supersedes No. ___________ for industrial development if there are commitments for at least $1 million in new construction and the creation or retention of at least 50 jobs. 2) The maximum cost of the City's assistance to each business locating within the industrial TIF District shall be calculated so that the City will fully recover all of its TIF costs including City borrowing costs through the projected property tax increments over an eight year period. 3) The City may use up to two years of projected property taxes from each Greenfield TIF project to capitalize a Development Fund that can provide assistance for certain “soft” costs like machinery relocation costs, employee training costs, site feasibility studies which relate to development projects within the Greenfield TIF district. The TIF Development fund may be used where an existing industry within a Greenfield TIF districts undertakes a development project that creates and/or retains jobs, but does not create new taxable property value. i) Standards for Incentives – Existing Industry Expansions 1) The City will consider the creation of a new industrial TIF district around an existing Janesville industry, where the industry is committed to an expansion project that will result in an additional $500,000 in property value and the creation or retention of at least 10 jobs. 2) The maximum cost of the City's assistance to each business expanding within an industrial TIF District shall be calculated so that the City will fully recover all of its TIF costs including City borrowing costs through CITY OF JANESVILLE Policy No. 61 Page 9 of 12 COUNCIL POLICY STATEMENT Date Issued 6/13/1994 Revised 10/28/2003 General Subject: Administration Revised 11/14/2006 Effective Date 11/14/2006 Specific Subject: Economic Development Cancellation Date _________ Supersedes No. ___________ the projected property tax increments over a ten year period. 3) The City may use up to two years of projected property taxes from each Expansion TIF project to capitalize a Development Fund that can provide assistance for certain “non-construction” costs like machinery relocation costs, employee training costs, site feasibility studies, etc., which relate to development projects within the Expansion TIF district. The TIF Development fund may be used where an existing industry within an Expansion TIF districts undertakes a development project that creates and/or retains jobs, but does not create new taxable property value. V. Downtown Redevelopment Policy The City of Janesville will work with private sector initiatives like the Downtown Development Alliance to attract and implement redevelopment projects in the downtown. This policy acknowledges that in many cases, successful downtown redevelopment projects require public incentives to overcome the extra costs associated with assembling multiple properties and demolishing structure to create a development site. Underground utilities may need to be relocated, street rights-of-way vacated, and environmental issues remediated. The following criteria shall be used to guide decisions involving the use of downtown redevelopment incentives: A. Project Facilitation The City of Janesville's Economic Development Agency will be available to assist developers and property owners to facilitate redevelopment projects. Assistance can take the form of providing information on available development sites; determining the necessary permitting for proposed projects; packaging development financing; or CITY OF JANESVILLE Policy No. 61 Page 10 of 12 COUNCIL POLICY STATEMENT Date Issued 6/13/1994 Revised 10/28/2003 General Subject: Administration Revised 11/14/2006 Effective Date 11/14/2006 Specific Subject: Economic Development Cancellation Date _________ Supersedes No. ___________ helping firms complete proposals for state and federal development assistance. In addition, the Agency will coordinate the City's response to specific requests for redevelopment incentives such as the creation of new redevelopment TIF Districts. B. Timing of Redevelopment Projects Where possible, the City will use non-TIF funding sources (i.e. general funds, CDBG Blight Elimination Funds, etc.) to purchase and demolish blighted building before the creation of a Redevelopment TIF district. By creating redevelopment sites prior to creating a downtown TIF district, the TIF district is able to utilize 100% of the new property value created by the redevelopment project. C. Standards for Incentives The City may use up to fifteen years of projected property taxes from a downtown redevelopment project to provide appropriate development incentives. The development incentives may take the form of selling property for less than its fair market valuation; the implementation of off-site streetscape improvements; the provision of off-street parking spaces; the relocation of existing water, sewer, storm sewer, electric, gas, and telecommunication utilities; reimbursements to the developer for specified redevelopment costs; low/no interest project financing; and site environmental remediation. D. Downtown Redevelopment Fund The City may use up to five years of property taxes from a key downtown redevelopment project to capitalize a downtown redevelopment fund. The redevelopment fund would provide development assistance for smaller projects within the downtown TIF district that would further improve the area surrounding the CITY OF JANESVILLE Policy No. 61 Page 11 of 12 COUNCIL POLICY STATEMENT Date Issued 6/13/1994 Revised 10/28/2003 General Subject: Administration Revised 11/14/2006 Effective Date 11/14/2006 Specific Subject: Economic Development Cancellation Date _________ Supersedes No. ___________ redevelopment project. VI. Non-Downtown Commercial Redevelopment Policy The City of Janesville will work with private developers to facilitate the redevelopment of older commercial corridors located outside of the downtown. This policy recognizes that it may be necessary to provide public incentives to overcome the extra costs of assembling smaller commercial properties into suitable redevelopment sites and demolishing existing buildings and relocating business tenants, Commercial redevelopment project may also require the vacating of street rights-of-way, relocating existing utilities, and upgrading transportation infrastructure to accommodate additional traffic. The following criteria shall be used to guide decisions involving the use of public incentives for commercial redevelopment projects located outside of the downtown: A. Project Facilitiation The City’s Economic Development Agency will be available to assist developers and property owners and facilitate redevelopment projects. Assistance can take the form of providing information on available development sites; determining zoning and permitting for proposed projects; working out site planning and traffic issues, and packaging development financing. In addition, the Agency will coordinate the City's response to specific requests for redevelopment incentives such as the creation of new TIF Districts. B. Standards for Incentives 1) Commercial redevelopment TIF Districts shall only be considered in commercial areas with the majority of existing structures older than forty (40) years old. The land within a proposed commercial redevelopment TIF District shall not be located within the B-4 CITY OF JANESVILLE Policy No. 61 Page 12 of 12 COUNCIL POLICY STATEMENT Date Issued 6/13/1994 Revised 10/28/2003 General Subject: Administration Revised 11/14/2006 Effective Date 11/14/2006 Specific Subject: Economic Development Cancellation Date _________ Supersedes No. ___________ Business Highway Zoning District. 2) The City may consider the creation of a new commercial redevelopment TIF district where a single “anchor” redevelopment project will create more than $750,000 in new property value on a redevelopment site larger than one acre in size. 3) The City may draw the boundaries of the proposed commercial redevelopment TIF district to include additional properties beyond the immediate “anchor” redevelopment project to stimulate further redevelopment activity and/or consider the creation of a “mixed-use” TIF district where the proposed redevelopment project includes the creation or rehabilitation of residential dwelling units. 4) Development incentives may take the form of selling property for less than its fair market valuation; the implementation of off-site streetscape improvements; the relocation of existing water, sewer, storm sewer, electric, gas, and telecommunication utilities; traffic control improvements, reimbursements to the developer for specified redevelopment costs; low/no interest project financing; site environmental remediation, or other incentives needed to facilitate the successful redevelopment project. 5) For any specific project within a commercial redevelopment TIF district, the cost of the public incentives should not exceed ten (10) years of projected property taxes from the redevelopment project unless the Council elects to increase the incentive to address specific redevelopment issues.