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develop as scheduled. However, there will be a negative impact period as <br />properties are demolished and /or devalued as part of the redevelopment <br />of these larger development sites. It is anticipated that the City through its <br />Redevelopment Commission and its Department of Public Works will be <br />providing a large amount of the resources to stimulate development in the <br />development area. Ultimately, the anticipated TIF revenues will be used <br />on target acquisition projects and small scale public works projects within <br />the development area versus the first several years in which the funds will <br />be used for large scale infrastructure and redevelopment projects. <br />Another economic tool that will be utilized for redevelopment activities <br />within the development area is a sales tax increment finance (STIF) <br />district. The STIF district will be designated around targeted properties <br />within the Erskine Hills Sub -Area. The STIF district will collect sales tax <br />r7 increment generated from within the designated area and the funds can <br />be used for redevelopment and infrastructure development projects within <br />that area. The STIF legislation allows for the collection of a total of one <br />million dollars in sales tax collected per year for twenty years for a total <br />cap amount of twenty million dollars. <br />Lastly, it has been determined by staff that to best facilitate all of the <br />proposed infrastructure improvements at the front -end of the lifespan of <br />the development area, tax abatements as an economic incentive would <br />not be encouraged or supported within the development area. <br />B. Funding Plan <br />One of the reasons for creating a new development area is to provide <br />resources to an area of a city that does not presently have a dedicated <br />funding source. The creation and designation of a development area <br />allows for the creation of a TIF allocation area to provide a financial <br />mechanism to accomplish the goals and objectives of the area. In the <br />case of the South Side Development Area, a STIF district is also <br />permitted to be designated within the development area boundaries. This <br />additional funding sources will provide an additional allocation to <br />accomplish projects within the area. <br />The important part of designating a development area is the constant <br />monitoring of all of the components of the Plan. The financial <br />components of the Plan might be the most important part in that with <br />improper information about the financial situation for the area it might not <br />be possible to accomplish the goals for the area. It is also important to <br />understand that funding sources will fluctuate and some funding sources <br />may decline or disappear altogether. Also, priorities within the sub - areas <br />31 <br />