Generally, bonds payable from TIF may be used to finance the cost of redevelopment and the construction of public improvements in the redevelopment area or projects that directly serve or benefit that area. For example, the proceeds of TIF bonds may be used for property acquisition and redevelopment activities including the construction of "local public improvements," such as public ways, sidewalks, sewers, waterlines, parking facilities and park or recreational areas.
The specific permitted uses of property tax proceeds generated from the increased assessed value are the following:
1. Paying the principal of and interest on opligations payable solely from the allocated tax proceeds.
2. Establishing. augmenting, or restoring the debt service reserve for TIF bonds.
3. Paying the principal of and interest on TIF bonds payable from allocated tax proceeds and a special taxing district tax levied by the commission.
4. Paying leases entered into by the Redevelopment Commission for public improvement.
5. Paying the principal of and interest on bonds issued by the "unit" to pay for local public improvements in or serving the allocation area.
6. Paying premiums on the redemption before maturity of TIF bonds.
The specific permitted uses of property tax proceeds generated from the increased assessed value are the following:
1. Paying the principal of and interest on opligations payable solely from the allocated tax proceeds.
2. Establishing. augmenting, or restoring the debt service reserve for TIF bonds.
3. Paying the principal of and interest on TIF bonds payable from allocated tax proceeds and a special taxing district tax levied by the commission.
4. Paying leases entered into by the Redevelopment Commission for public improvement.
5. Paying the principal of and interest on bonds issued by the "unit" to pay for local public improvements in or serving the allocation area.
6. Paying premiums on the redemption before maturity of TIF bonds.
