Quote:
Originally Posted by Handro
I have a very elementary understanding of TIFs, so bear with me.
Do 100% of generated property taxes get diverted? Why couldn’t the city come up with a deal where a percentage of property taxes get sent to the developer to repay for things like infrastructure, while the city still gets some benefit of an increased tax base over that repayment period? It would extend the time it would take for a developer to recoup costs, but it could alleviate some community concerns, at least enough for things to get through without so much controversy.
Or is that already the case?
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TIFs have a base assessment that existed prior to the creation of the TIF.
The City, county, school, park levies continue to get tax income for this amount of assessment at the prevailing tax rate.
This base assessment is frozen both in terms of inflation as well as from increases caused by either improvements or market value.
Any increase above the base assessment, is taxed at the prevailing rate, but the proceeds don't go to the general funds, but into the TIF coffers.
Ordinarily, there is sufficient improved property that the base amount going to the levy can make a dent in the increased costs of serving any new uses. But in this case, 70% of the TIF is vacant land, assessed at a very low value and unable to provide for the services that the new uses will require.
The base valuation for the 140 acre Cortland River TIF is about $80 million.
This will only bring in about $6 million dollars to serve the new residents and workers as well as those already present.
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