2nd D R A F T

* Application Fees Due

Application Procedures

1 APPLICATION:

Submission. The Redevelopment District -TIF Application form, policies, and procedures are available from the City’s Development Services department or City Clerk’s office. Not less than 8 copies of the completed Application should be submitted to the TIF Committee together with the required application fee. The completed application shall be submitted to Development Services Director, City of Olathe, 100 W. Santa Fe, P O Box 768, Olathe, Kansas 66051.(Gilmore & Bell – highlighted, advising should indicated office the application should be delivered)

Application Fee. Each Application shall be accompanied with a non-refundable application fee made payable to the City of Olathe. The application fee will be used by the City to pay the costs incurred by the City in the review of the application. Bond Counsel and Financial Advisor fees are paid from bond proceeds, if necessary. The City has established a phased application fee as outlined below. Any amendments to a TIF Plan require a non-refundable reapplication fee as indicated below. ~~In the event costs for third-party services exceed the fee collected, the applicant will reimburse the City for such additional cost prior to final consideration of the application by the City Council~~ The applicant may be required to pay additional costs such as outside consultant and attorney fees..

TIF APPLICATION FEE

Total Application Fee	1% of the total TIF assistance requested

Initial application fee*	5%** or $~~5,000~~ 2,500 whichever is less
Submit Redevelopment Plan for Approval fee	15%** or $7,500 whichever is less
Ordinance approving Plan and issuance of bonds fee	80%** or $~~10,000~~ 40,000 whichever is less

Maximum fee – due at a prescribed time (includes initial application fee)	$50,000

*	To be paid at the time of application submittal.
**~~Minimum Non-refundable~~	Portion of 1% of TIF assistance requested.~~Fees are non-refundable at each incremental stage.~~

In addition to the fees listed above, the applicant shall pay to the City at the prescribed time an administrative service fee, as shown below to cover the administration and other City costs for each approved TIF Project. Such administrative service fee shall be in addition to the application fee. Such service fee may be paid from tax increment generated from the project, bond proceeds or from a direct billing to the applicant. The payment method of the administrative service fee shall be determined on a case by case basis and only if tax increment is available. The administration service fee shall be reduced to the fee shown below if only property tax increments are related to the project.

TIF ADMINISTRATIVE SERVICE FEE

Property tax increment projects only	.5% of the annual increment
Property tax, sales tax and other tax increment projects	2.5% of the annual increment

Preliminary Determination of Completeness. Upon submission, the Application will be reviewed to determine if it is complete. If the Application is incomplete or if additional information is needed the Applicant will be notified in writing that the Application is not complete, and the reasons will be stated referring to the specific criteria that are not met, additional information required, or financial, legal, planning, and development concerns.

Requests for Proposals. The City may initiate a Request for Proposal for a redevelopment project. The fees shown above are for both city initiated and non-city initiated redevelopment projects. The City reserves the right to reduce or waive the above fees if a redevelopment project is determined to be in the best interest of the City to do so. Upon the filing of an application that is non-city initiated, the City reserves the right to cause a public notice to be inserted in a newspaper of general circulation in the City or on the City’s website requesting proposals for development in the proposed project area.

2 STAFF REVIEW:

Review of the Application will be conducted by the City’s TIF Committee, and if necessary by other City Staff, City's Financial Advisor, and Bond Counsel. Initial review time will be approximately 30 days from the date the completed Application is submitted to the City. However, more or less time may be required for particular Applications. Applications that are determined to be complete, consistent with all elements of the City’s Comprehensive Plan, and in conformance with the City's policy will be forwarded to the City Council for consideration. Applicants will be notified of the TIF Committee forwarding the Application to the Council Study Session.

Applications that are determined to be incomplete or do not conform to the City’s policy will not be forwarded to the City Council. Applicants will be notified of the determination that the Application will not be forwarded and should be modified before being considered in the future.

3. REDEVELOPMENT CONSIDERATION:

The TIF Committee will forward the Application and preliminary Redevelopment Plan to the City Council. The recommendation of the TIF Committee may be approved, denied, or amended by the City Council.

The City Council may desire to hold one or more study sessions before any public hearing is held. During this period the Applicant may be required to submit additional information as requested and/or appear before the City Council to present information regarding the application.

The City Council considers making all findings and determinations required by the TIF Statute. The City Council considers the creation of the District and the Memorandum of Understanding that designates the proposed developer at a Study Session.

The City Council conducts hearings and other requirements as prescribed by state law. The

proposed developer prepares a Redevelopment Plan pursuant to state law and city requirements including a traffic study if requested. The cost of all such studies shall be paid by the Applicant and should be prepared by a professional consultant having a favorable reputation for the preparation of such studies. The studies shall be submitted to the City in a timely manner for review by staff prior to any City Council meetings or study sessions. Additionally, consideration of the redevelopment plan shall include the term of the redevelopment, impact on traffic, amount of incremental or other incentives, the type of building materials, credit enhancements, and general conformance with the City Comprehensive Plan. The TIF Committee reviews the Redevelopment Plan and submits it to the City Council with comments.

The City Council reviews and discusses the Redevelopment Plan and Redevelopment Agreement at Study Sessions. The City Council considers an Ordinance making necessary findings and approving the Redevelopment Plan and Redevelopment Agreement. Authorization of the issuance of bonds or reimbursement of TIF eligible costs is also considered at this time.

4. DEVELOPER RESPONSIBILITIES:

Legal notices and mailings to taxing districts and property owners, shall be prepared, delivered, and mailed by the Applicant pursuant to state law. Copies of certifications of mailing, signed delivery certifications, or other proofs of notifications shall be forwarded to the City Clerk. The Applicant shall also prepare any Notices of Public Hearings to be published and forward to the City Clerk for publication in a timely manner as required by state law. The Applicant is responsible for all costs associated with publications, mailings, certifications, delivery, and preparation of notices. The City shall be reimbursed for any expenses associated with Application and the redevelopment (TIF) process.

CITY OF OLATHE, KANSAS

APPLICATION FOR TAX INCREMENT FINANCING ("TIF")

APPLICANT:

ADDRESS:

PHONE #:

FAX #:

E-MAIL ADDRESS:

CONTACT PERSON:

PROJECT NAME:

Application Format: On a separate sheet(s) of paper please answer the following questions. Please type each question prior to the applicable response.

(1) In no more than three pages provide relevant information on the Applicant's background and development experience. Include resumes of key individuals assigned to the project as well as other projects completed including location and contact persons.

(2) Identify the Applicant's consultants involved or proposed to be involved in the project noting relevant experience on similar projects (i.e., civil engineer, land use planner, Applicant's legal counsel, Applicant's financial advisor).

(3) Describe the proposed project, including the size and scope and phasing of the proposed project. Specifically outline residential development, if any, to be included in the project.

(4) Define the boundaries of the proposed TIF area by address and locator number(s). Include a map of the proposed TIF area.

(5) Identify the property that is currently in the control of the Applicant via ownership or option. If under option note the option expiration date.

(6) Is the property currently zoned for the proposed use? If not, what zoning change will be required?

(7) Will the proposed project result in the relocation of residential, commercial or industrial facilities? If so, discuss the nature of any anticipated relocations.

(8) State the need and justification for TIF assistance. Explain how the applicant intends to demonstrate compliance with the "but for" test. Substantiate that other alternative methods of financing have been thoroughly explored as well as why TIF assistance is necessary.

(9) Discuss the condition(s) that would qualify the proposed TIF District as a "blighted area" or "conservation area," and/or whether the project is within an enterprise zone as defined within Kansas State law.

(10) Identify sources, amounts, and status of all debt financing and/or equity funding available to complete the project. Does the applicant anticipate the debt to be privately financed by the construction lender or developer or publicly sold? Please ~~prepare~~ list all information in the following table format.

Financial Contact Contact

ResSource Amount Term Status Person Telephone #

(11) Provide an outline of the costs associated with the development of the proposed project(s) and related parcel or parcels located within the TIF area. Identify in the outline those costs you would propose to fund with TIF financing and the proposed payback time frame (provide a debt service schedule showing rates and assumptions).

(12) In one page or less, discuss and document information used to describe the market feasibility of each element of the proposed project. If a formal feasibility or comparable studies have been prepared, attach such reports as an appendix to this application.

(13) On a revenue worksheet estimate the incremental property taxes and economic activity taxes to be generated by the project, including underlying assumptions.

(14) Provide an estimate of the market value of all fixtures and equipment to be used by all owners or tenants of the proposed project that will be taxed as personal property.

(15) Identify any proposed tenants of the project. Have leases been negotiated or signed? What type of lease is contemplated?

(16) Who will own the developed property?

(17) Briefly describe the "economic and quality of life" benefits of the proposed project to the City.

(18) Attach a letter from a financial institution indicating that the applicant has sufficient financial resources to obtain the private financing for the project.

REDEVELOPMENT DISTRICTS -

TAX INCREMENT FINANCING

Approved

Application Procedures

TIF APPLICATION FEE

TIF ADMINISTRATIVE SERVICE FEE