TIF Commission Meeting

The Tax Increment Financing Commission will be meeting on Tuesday, June 9th at 2 pm on the second floor mezzanine of City Hall at 700 E. Broadway. The Commission will be reviewing and voting on two proposed projects: the Tiger Hotel and the mixed-use development on Tenth & Locust.

Both proposals are available on the city's website.

Some things to know about TIFs:

• TIFs are not directly funded by the city. Developers don't simply receive a check from the city.
• Tax entities (such as the schools or the SBD) don't see a reduction in their current revenues.
• The developer must receive a loan for the entire project amount and this loan is not secured in any way by the city.
• Development projects are funded by future sales and property taxes the new development would generate.
  
• Property assessment values are frozen at the current amount and the current tax amount is still paid. As the project is completed and the property increases in value, 100% of this additional tax goes to pay off a portion of the loan (usually around 15-19%).
  
• 50% of new sales taxes generated by the project go to pay off a portion of the loan, the other 50% goes to the taxing entities.
• Unlike TDDs, no tax rates are increased. The consumer will not see any change.
  
• If the project fails and cannot generate enough to pay off the loan, the developer is responsible for the entire amount, not the city.

____________