Tax Increment Financing (TIF) is a real estate redevelopment tool applicable to industrial, commercial, intermodal transportation area and residential projects. TIF uses the increases in real estate tax revenues and local sales tax revenues to retire the bonds sold to finance eligible redevelopment project costs (K.S.A. 12-1770 et seq.) or to reimburse the developer on a pay-as-you-go basis. Monies raised through TIF may be used for eligible redevelopment project costs approved by the city, such as land acquisition, site preparation, infrastructure, parking structures and other related costs. The TIF funding mechanism can be used to finance improvements within the district, and can also extend to certain infrastructure improvements outside the designated district, if those improvements are contiguous to the district and are deemed necessary to implement the development plan. TIF cannot be used for the construction of privately owned buildings. Financing is available from the proceeds of bonds issued by the city or on a pay-as-you-go reimbursement. The bonds are primarily secured by the incremental increase in property taxes within the redevelopment district as a result of the new construction or rehabilitation but may, under certain circumstances, also be general obligations of the city. The city may also use franchise fees and local sales taxes generated within the redevelopment district to pay the bonds or finance the project costs. TIF works for both privately and publicly owned land to be sold for redevelopment. Advance developer commitment to construct the project is essential to demonstrate that the TIF revenues will be sufficient. Businesses have found that TIF offers several distinct advantages. Using TIF generally allows the financing of land acquisition and other eligible costs with tax-free borrowing at generally lower interest costs. To receive the benefits of TIF, generally the site must be in a blighted area, conservation area, pre-1992 enterprise zone, intermodal transportation area or other eligible area.