"We are looking at sizable developments and developments that are feasible," said Mandan Administrator Jim Neubauer as he explained the city's tax increment financing policy for the Mandan City Commission.

The board gave the nod to the official policy at its Oct. 7 meeting.

Under state Century Code, a TIF allows developers or owners to receive a tax exemption for up to 15 years on the improvements of a blighted or undeveloped area. The tax exemption covers the improved portion only.

Those receiving financing through the city also will be taxed on the improved property through a TIF, but the amount above the unimproved taxed value is placed in a special account by the Morton County auditor's office to repay for the public improvements.

Neubauer said Mandan's policy was modeled after Fargo's TIF process.

He said its intent is to provide property owners, developers and the public with an idea of what to expect when they apply for a tax increment finance district.

Steps of the policy include:

n The applicant must give a preliminary review of the project's concept through a letter.

Neubauer said the initial nod from the commission will allow the application to move ahead, but the board will need more details. This stage does not mean the TIF approved.

n Should the applicants reach an initial agreement with the city, they would pay a $5,000 deposit for the financial research.

n The Growth Fund Committee then reviews the application.

n With its backing from the Growth Fund Committee, the project could go before the Mandan City Commission for its consideration.

However, if the Growth Committee denies the project in the application, the policy allows the developer or owner to appeal within 30 days.

n With committee approval, draft plans, public notices and agreements and resolutions must be prepared.

n A public hearing will be held.

n With approval of the TIF from the city commission, the applicant will pay a 5 percent administrative fee.

Audience member Susan Beehler challenged the policy.

"This can affect county taxes and school taxes for 15 years," she said.

"This means everyone else in the city is picking up that school tab and that county tab," Beehler said.

She added that good-paying jobs need to be generated from a TIF project. She said taxpayers need more representation in the process.

Mayor Tim Helbling said people were represented on the Growth Fund Committee.

He said the city commission has the final vote, but people may voice concerns at the public hearing for a TIF.

(Reach reporter LeAnn Eckroth at 250-8264 or leann.eckroth@;bismarcktribune.com.)