Downtown Hilo Redevelopment Plan_Feb 1985

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4. Provision of Additional Tools for Fundin Pro sals Existing funding sources for downtown improvements include private funds, State and County operating budget and capital improvement programs, Federal and State grants -in -aid for various project types, County improvement districts, and Federal assistance in the form of Community Block Grants. Additional sources of funding are proposed as part of this Redevelop- ment Plan. These are: a. Tax Increment Financing: This funding source would finance redevelopment projects and operations proposed (in the redevel- opment area). Under this method all or any part of the redevel- opment area should be designated as a tax increment district. All taxable properties within this district would then be appraised and a tax increment base would be set based on the district's total appraised value. Tax increment bonds would then be issued to finance the proposed projects and would be secured by property taxes derived from increased property values above the tax increment base. The tax increments collected would be placed in a tax increment fund and used for the payment of tax increment bonds. b. Special Purpose Revenue Bonds: This funding source would provide assistance to public utility, health care, low- and moderate- income government housing and other types of proposed projects within the redevelopment area. Under this method, the County would enter into an agreement with a business person, firm, or corporation to finance, construct, operate, or maintain a proposed project from the proceeds of special purpose revenue bonds. C. Economic Development Bonds: This funding source would provide assistance in financing new commercial projects in the redevelopment area. Under this method, the County would be the lessor of the project to a private person, firm or corpora- tion. This arrangement would allow use of tax exempt bonds and thereby allow private businesses to borrow funds at below market - interest rates. d. Private Donations: The contribution of private donations by individuals, residents and groups would be a welcomed addition- al source of funding. HRA should examine a program for encouraging such private donations by means of contribution drives, wills and other methods. Use of the above funding sources in this Redevelopment Plan will require approval at the State and County levels. 5. Development of a Kalakaua Park Heritage Area This heritage area is intended to (1) aid in the preservation and rehabilitation of the public and private structures of architectural or -15-