Rules for provisional tax increment districts

(a) A provisional tax increment district shall be subject to the following: (1) No tax increment bonds or bond anticipation notes shall be issued to provide funds for a provisional tax increment district. (2) The council may by ordinance extend the term of a provisional tax increment district for no more than two years beyond its original term. (3) During the term of a provisional tax increment district, and subject to the limitation of subsection 33-13(f)(5) above, if appropriate, the money in the tax increment fund may be used only for: (A) Preliminary costs for initiating an improvement district in accordance with section 12-10, Hawai‘i County Code, including but not limited to the cost of title searches, postage, and other administrative costs; (B) Professional service costs and administrative costs to prepare financial projections and to identify all methods available to remedy the condition in the targeted area, including but not limited to determining the feasibility of the proposed tax increment district to accomplish its goals through tax increment financing and/or the improvement district process as established in chapter 12, Hawai‘i County Code; (C) Preparation of a tax increment financing plan for the district if this mechanism is determined to be feasible; and (D) Professional service costs and administrative costs for the district to prepare detailed plans and specifications for the projects proposed. (4) During the term of a provisional tax increment district, the council may not exercise the power of eminent domain in connection with the acquisition of property in the tax increment district. (b) At any time during the term of a provisional tax increment district the council may approve a tax increment financing plan in accordance with section 33-11 and by ordinance convert the provisional tax increment district into a tax increment district. The council at its option may require that an improvement district be approved by the owners of land in the targeted area before a provisional tax increment district is converted to a tax increment district. (c) If a provisional tax increment district is converted to a tax increment district, the adjusted assessment base of the provisional tax increment district at the time of the conversion shall become the assessment base of the tax increment district. (d) If at the end of its term a provisional tax increment district has not been converted to a tax increment district, all money remaining in the tax increment fund of the provisional tax increment district shall, to the extent it is not encumbered, be returned to the general fund. (1994, ord 94-76, sec 3.)33-14 Article 3. Tax Increments.