County can issue tax increment bonds to pay for projects

The council may authorize the issuance of tax increment bonds, the proceeds of which may be used to pay project costs for a district or to satisfy claims of bondholders. Both principal, interest and premium, if any, on tax increment bonds shall be made payable solely from the tax increment fund established for the district. The County may provide in its contract with the owners or holders of the tax increment bonds that the County will pay into the tax increment fund all or any part of the revenue or money produced or received as a result of the operation or sale of a facility acquired, improved, or constructed pursuant to either a redevelopment plan, as defined in section 53-1, Hawai‘i Revised Statutes, or a community development plan, as defined in section 206E-5, Hawai‘i Revised Statutes, to be used to pay principal and interest on the tax increment bonds and, if the County so agrees, the owners or holders of tax increment bonds may have a lien or mortgage on any facility acquired, improved or constructed with the proceeds of the tax increment bonds. The County may issue such types of bonds as it may determine including bonds on which the moneys in the tax increment funds are derived: (a) Exclusively from the income and revenues of the projects financed with the proceeds of the bonds, or with such proceeds together with financial assistance from the State or Federal government in aid of the projects. (b) Exclusively from the income and revenues of certain designated projects whether or not they were financed in whole or in part with the proceeds of the bonds. (c) In whole or in part from taxes allocated to, and paid into the tax increment fund pursuant to the provisions of this chapter. TAX INCREMENT DISTRICTS § 33-19 (d) From its revenues generally. (e) From any contributions or other financial assistance from the State or Federal government. (f) By any combination of these methods. (1994, ord 94-76, sec 3.)33-19