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- - -- The project being considered is proposed as a 10 year TIF under pay -as- you -go. <br />Reimbursement occurs only from taxes paid. If taxes do not reach a level of <br />repayment, the developer does not receive agreed upon amount. <br />Benefits of TIF: <br />TIF allows the City to realize new development which would not otherwise occur without <br />the use of TIF (the 'But For" test). <br />The City can realize broader economic gains of new development in terms of <br />employment, tax base enhancement and secondary spin -off effects. <br />The City can facilitate the construction of related improvements it wishes to achieve. <br />Costs to the City: <br />The City and other overlapping taxing jurisdictions must wait until the TIF district (i.e. <br />the project) is terminated until the new development becomes part of the general tax base; <br />in the meantime, taxing bodies receive the current taxes. <br />Information provided from: <br />Tax Increment Financing (TIF) in Minnesota - Concepts and Mechanics, April 2009 <br />Springsted Associates <br />City of Pequot Lakes - Business Subsidy Policy and JobZ Business Subsidy Policy, <br />August, 2007 <br />NO <br />