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1�oou 97A;ESE896 • Exposure A major TIF financing concern is whether a large development project needing substantial roadway improvements can finance its TIF, while the County constructs the road improvements. In such cases, the risk of default and its adverse impacts on the County are increased even more. The County's total exposure for financing TIF's can be limited by restricting TIF financing eligibility. Since the principal reason for the County financing TIF's is to promote economic development, limiting TIF financing to industrial businesses with Standard Industrial Codes 20 through 39, as well as the county's target industries would provide a viable incentive while limiting the County's TIF financing exposure. Even with this limitation, TIF financing could still be an economic development incentive for those industries. • Local Government Survey Although the TIF financing initiative came about because of the County's utility impact fee financing program, staff surveyed other local governments in the state to determine the extent of TIF financing. Through direct contact with nine counties, the Florida League of Cities, and the Florida Association of Counties, staff could not find any local governments which finance traffic impact fees. This may indicate that some of the TIF financing issues addressed herein have caused other local governments not to institute TIF financing. ALTERNATIVES: With TIF financing, there are two principal alternatives. The County can choose either to offer a traffic impact fee financing program, or it can opt not to offer such a program. If the County decides to provide TIF financing,. there is a variety of options available to the County. These range from a conservative, narrowly focused, risk -limited TIF financing program to a more broadly based, inclusive program with added financial risk. While many variations can be structured, the major alternatives involve restricting/not restricting TIF financing eligibility; limiting/not limiting subordination and assignment of TIF liens; and allowing/not allowing interfund borrowing. A conservative, low risk TIF financing program could have the following characteristics. • Allow financing of Traffic Impact Fees only for industrial establishments with two digit SIC codes 20 through 39, as well as the county's target industries. • Do not allow financing of Traffic Impact Fees for non-industrial/non-target businesses; • Require recording of a lien against the benefitting real property. • Require that TIF financing lien be a first lien, prohibit subordination of the TIF lien, prohibit the assignment of the TIF lien without written approval from the Board of County Commissioners, • Allow interfund borrowing by traffic impact fee fund, allow interfund borrowing from 9th cent gas tax fund, if 9th cent gas tax is approved; • Provide for 6 year financing, to correspond to the timeframe in which traffic impact fees must be expended; • Charge interest at the rate established by the Board of County Commissioners; • Require annual payments to retire TIF _ loan; 42 April 23, 1996 M