Below is a basic description of TIF assistance:

1. A project is proposed that may require financial assistance.
2. The current amount of taxes paid on the project site by the property owner is determined. Current taxes are based on the current property value. 
3. If the project meets state statutory requirements, a TIF District may be created.
4. A project is built that increases the taxable property valuation. Which in turn, increases property taxes paid by the property owner.
5. The city subtracts the current amount of taxes paid from the amount of taxes that would be paid following the project. This establishes the amount of "tax increment" going forward. 
6. The city negotiates, based on state statute and qualified development expenses, the number of years that the project requires a percentage of the "tax increment" to be rebated back to the property owner in order for the project to be financially viable. 
7. The developer pays their annual property taxes in full. The city rebates back a percentage of the annual "tax increment" each year, until the max number of years previously negotiated by the city is met. 
8. After the TIF obligations are met, the TIF District closes, and the city no longer rebates back a portion of the new, higher annual property taxes paid.

No.

Residents do not pay taxes that are used by a TIF project. Only new tax dollars created by the project can be used to assist the project.

The Redevelopment Project included the demolition of an existing structurally substandard building, and replaced it with a 134-unit market-rate apartment building with underground parking. In consideration of the redevelopment, the Economic Development Authority (EDA) will reimburse Chanhassen Frontier, LLC the qualifying costs outlined below while constructing the multifamily apartments. No funds will be distributed to the grocery portion of the project.

"Pay as you go" TIF 

Taxes will be rebated to the developer. 

• Total taxes rebated to the developer: $1.3 million for up to seven years
• Up to $3.2 million retained by the City of Chanhassen for the Market Boulevard project reconstruction
• Reimbursable costs
  • Demolition, earthwork, grading, and site preparation
  • Utilities (SAC and WAC fees)
  • Construction of a first-level parking structure and surface parking
  • Foundations and footings for the apartment building and retail building
  • Landscaping and site improvements 

The housing project included the construction of The Lake Place, a 55+ Apartment complex located at 1361 Lake Drive West. This is a 110-unit three-story senior apartment building where at least 50 (44%) or more of the rental housing units are to be occupied by qualifying tenants, those whose household income is 60 percent or less of the area median gross income.

"Pay as you go" TIF 

Taxes will be rebated to the developer. 

• Total taxes rebated to the developer: $3,065,000 for up to 25 years.
• Reimbursable costs
  • Public Infrastructure
  • Site Preparation
  • Site Improvements