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The principal issues in changing TIF payment timing involve determining which projects qualify, guaranteeing capacity without fee payment, and coordinating with the municipalities. The following summarizes staff's work to date on these issues. • Determining Which Projects Should Qualify Based on discussion at the August 13th Board meeting, staff determined that "smaller" non-residential projects (all commercial, industrial, office and institutional uses) would qualify. To determine a threshold, for "smaller' projects, staff reviewed recent TIF payment history for non-residential projects in the unincorporated area and the City of Vero Beach. That data is as follows: Period of August 1, 2001 to July 31, 2002 incor orated Area and City of Vero Beach an p TIF Dollar Amount Number of Non Residential Projects Percent of Total Under $10,000.00 43 54% $10,000.00 - 19,999.99 15 19% $20,000.00 — 29,999.99 6 7% $30,000.00 — 39,999.99 1 1% $40,000.00 — 49,999.99 5 6% $50,000.00 and more 10 13% TOTALS 80 100% Just over half of the total projects had TIFs under $10,000.00 and the significant majority (87%) had TIFs under $50,000.00 Thus, a dollar amount threshold between $10,000.00 and $50,000.00 could be used to determine what constitutes a ' smaller" qualifying project. Such a threshold would directly correspond to project traffic impacts and could be precisely calculated for all types of projects. If a dollar threshold is selected a policy determination would also need to be made as to whether or not a partial TIF could be paid for a large project, whereby payment of the threshold dollar amount portion of the total project TIF could be delayed to the time of C.O. Such an approach would be similar to breaking -down a larger project into "smaller" projects for TIF payment purposes. • Guaranteeing Capacity Without Fee Payments As explained earlier, capacity must be reserved at the time of building permit issuance. Without fee payments, the payment for such capacity must be guaranteed. Such a guarantee could take the form of an unsecured "loan" from the county or the city that issues the building permit to the owner/developer. The county or city could withhold issuance of a C.O. to induce an owner/developer to pay the TIF in order to ' pay-off the loan" The county or city and the owner/developer could enter into such a "loan" arrangement prior to issuance of a building permit Such a loan would need to be limited September 3, 2002 102 41,