Definitions for tax increment districts

As used in this chapter, the following words and terms shall have the following meanings unless the context indicates a different meaning or intent: “Adjusted assessment base” means the value of the assessment base for a tax increment or provisional tax increment district after adjusting the original assessment base annually by the adjustment rate, the effect of which shall be cumulative. “Adjustment rate” means a percentage rate or rates of adjustment of the assessment base recommended by the director of finance and approved by the council at the time the tax increment or provisional tax increment district is established, based on the historical and projected increases to the assessed values of taxable real property within the boundary of the district and the projected cost increases to the County for servicing the new developments within the district. “Assessment base” means the total assessed values of all taxable real property in a tax increment or provisional tax increment district as most recently certified by the director of finance on the date of creation of the district. “Assessment increment” means the amount by which the current assessed values of taxable real property located within the boundaries of a tax increment or provisional tax increment district exceeds its assessment base. “Blight” means a condition resulting in a reduction in or lack of proper utilization of the area to such an extent that it constitutes a serious physical, social or economic burden on the County. Specifically, this improper utilization must be caused by either: (a) The existence of residential, commercial, industrial or other types of buildings which are unfit or unsafe to occupy and are conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, and crime because of any one or a combination of the following factors: (1) Defective design and character of physical construction; (2) Faulty interior arrangement and exterior spacing; (3) High density of population and overcrowding; (4) Inadequate provision for ventilation, light, sanitation, open spaces, and recreation facilities; or (5) Age, obsolescence, deterioration, dilapidation, mixed character, or shifting of uses; or (b) The existence of properties which suffer from economic dislocation, deterioration, or whose use is unreasonably impaired because of one or more of the following factors: (1) Faulty planning; (2) The subdividing and sale of lots of irregular form and shape and inadequate size for proper usefulness and development; (3) The laying out of lots in disregard of the contours and other topography or physical characteristics of the ground and surrounding conditions; (4) The existence of inadequate public improvements, public facilities, open spaces, and utilities which cannot be remedied by private or governmental action without tax increment financing; (5) A prevalence of depreciated values, impaired investments, and social and economic maladjustment; or (6) The existence of lots or other areas which are subject to being submerged by water. “Council” means the council of the County of Hawai‘i. “County” means the County of Hawai‘i. “Director” means the director of finance of the County of Hawai‘i. “Project costs” means expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by the district that are listed in a tax increment financing plan as costs of public works or public improvements in a tax increment district, plus other costs incidental to the expenditures or obligations. Project costs include: (a) Capital costs, including the actual costs of the construction of public works or public improvements, new buildings, structures, and fixtures; the actual costs of the demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures, and fixtures; and the actual costs of the acquisition, clearing, and grading of property; (b) Financing costs, including, but not limited to, all necessary and incidental expenses related to the issuance of tax increment bonds and all interest paid to holders of evidences of indebtedness or other obligations issued to pay for project costs, any capitalized interest, and any premium paid over the principal amount of the obligations because of the redemption of the obligations prior to maturity; (c) Professional service costs, including architectural, planning, engineering, marketing, appraisal, financial consultant, and special services and legal advice; TAX INCREMENT DISTRICTS § 33-2 (d) Imputed administrative costs, including reasonable charges for the time spent by employees of the County in connection with the implementation of a tax increment financing plan; (e) Relocation costs to the extent required by Federal or State law; (f) Organizational costs, including the costs of conducting environmental impact studies or other studies, the costs of publicizing the creation of a tax increment district, and the cost of implementing the tax increment financing plan for the tax increment district; (g) Payments determined by the council to be necessary or convenient to the creation of a tax increment district or improvement district, or to the implementation of the tax increment financing plan for the tax increment district. “Property” means: (a) Land, including land under water and waterfront property; (b) Buildings, structures, fixtures, and improvements on the land; (c) Any property appurtenant to or used in connection with the land; (d) Every estate, interest, privilege, easement, franchise, and right in land, including rights-of-way, terms for years, and liens, charges, or encumbrances by way of judgment, mortgage, or otherwise and the indebtedness secured by such liens. “Provisional tax increment district” means a contiguous or noncontiguous geographic area designated pursuant to this chapter by the council for the purpose of financing preliminary costs for establishing a tax increment district in conjunction with an improvement district or community facilities district. “Public works” or “public improvements” means any one or any combination of the following which shall be constructed to standards acceptable to the County at the time of the commencement of the project: (a) The establishment, opening, extension, widening, or altering of any street, alley, or other highway or sidewalk; (b) The grading, paving, curbing, or otherwise improving of the whole or any part of any existing public street, alley, or other highway or sidewalk; (c) The construction, installation, extension, maintenance, reconstruction, additions or improvements of a storm drainage facility or sanitary sewerage system; (d) The construction, installation, extension, maintenance, reconstruction, additions or improvements of a street lighting system; (e) The construction, installation, extension, maintenance, reconstruction, additions or improvements of a water system; (f) The construction, installation, extension, maintenance, reconstruction, additions or improvements of underground or overhead utility facilities including gas, electrical, telephone, or television facilities, and the removal, relocation, replacement or reconstruction thereof; (g) The establishment, extension, or construction of public off-street parking facilities, pedestrian mall, parks, playgrounds, beach areas, or other public recreational areas and facilities; (h) To make improvements related to the foregoing and to otherwise improve any of the foregoing to an extent exceeding maintenance or repair thereof; (i) Any other public improvement deemed necessary for the tax increment district by the council. “Targeted area” means a specific geographic area proposed to be included in a tax increment or provisional tax increment district in which the council finds that blight significantly impacts and injuriously affects the entire area. “Tax increment” means the amount of real property taxes levied for each fiscal year on the assessment increment. “Tax increment bonds” means bonds, notes, interim certificates, debentures, or other obligations issued pursuant to this chapter. “Tax increment district” or “district” means a contiguous or noncontiguous geographic area designated pursuant to this chapter by the council for the purpose of tax increment financing. “Tax increment financing plan” or “financing plan” means the plan for tax increment financing for a district submitted to and approved by the County council. The tax increment financing plan shall contain estimates of: (a) Project costs; (b) Amount of tax increment bonds to be issued; (c) Sources of revenue to finance or otherwise pay project costs; (d) The most recent assessed value of taxable real property in the district; (e) The duration of the district’s existence; (f) The financial and budgetary impacts on the County resulting from the proposed tax increment financing plan; (g) The proposed adjustment rate as recommended by the director of finance. “Tax increment fund” or “fund” means a fund held by the director or other fiduciary designated by the council and into which all tax increments, other moneys pledged by the County for payment of tax increment bonds and any moneys available for project costs are paid, and all proceeds from the sale of tax increment bonds are deposited, and from which moneys are disbursed to pay project costs for the tax increment district or to satisfy claims of holders of tax increment bonds issued for the district, or as otherwise authorized herein. “Total assessed value” means the gross assessed value less any applicable exemptions, and is also referred to as the “net assessed value.” (1994, ord 94-76, sec 3.)33-2 TAX INCREMENT DISTRICTS § 33-3