TIF questions

Someone posted these questions earlier, on more than one string. Here are my answers.

, so tell me about the TIF. What the heck is it?
A Tax Increment Finance district, is a means of financing. A piece of blighted property qualifies. Blighted does not mean the appearance or condition, but is just a legal definition of a property that is not being utilized to its fullest potential. So a vacant lot is a blighted property because it is not being utilized.
Here is how a TIF works. It pays for infrastructure. The company pays its taxes, and those taxes are put into a special account to pay for infrastructure. The company pays taxes as usual, there is no tax break here, that is not what is happening.
Hopefully the city gets a decent development and uses the tax money to pay for it, so the city is not out any money either. The developer still has to pay for the actual building project itself.
The money used to pay for infrastructure is generated through the new business. The money would not be there if the business were not built.
One controversy is whether it should be only used for industrial, or whether retail is good for it oo.


Why do the people want it so bad, especially the city commissioners?
Because they see it as a very good and easy way to grow the city. It is a way to get a new business, and some infrastructure paid for without using city money. . it’s a way to get a development for free, in essence.
ONE THING THAT NEEDS TO BE REALIZED
The current thing the city is working on, is not necessarily a TIF. It is just creating an area for development. ANY kind of financing can be used there. It could be TIF, but it could also be anything else you could think of. It could even be on a cash basis.

And what is really interesting, now we don't hear a peep out of any of them so much against it before. Why is that? What is different this time?

I think because they realize it is not limited to a TIF. And I think some realize that we missed the boat before. There is also an election not that far away, and some people will be up for reelection.
It is different this go around, and I think that is why there is no outcry. This is being done from the inside, and not an outside company . that does make a difference.

I know there is a HUD project or something for housing that ACI is wanting to build, and that should bring in people. And there are big box stores, probably another Lowe's coming, and even a quick passing comment about a new place to eat (LOL...probably Montana Mike's). But, why have we not heard the outcry as we did before?
I think people are realizing that we need to do something. Its not just one thing that will do it, You have to do everything. Its not just housing, not just getting more people, not just industry, not just retail. Just one of those by itself isn’t the answer. You have to work on all of it at the same time.
I think we are getting some good leadership. And people are realizing that progress needs to be made, and that perhaps the naysayers are not really the majority.
Those that supported progress were not vocal enough last time. I think they are now..


Something is fishy here. Could Mr. Eaton have changed his mind since he sits on the board of ACI now?
Ive no idea if he has changed his mind or not. I don’t even know if he is on the ACI board or not,.. He is a good guy, but he doesn’t really control the city.
I think there has been a shift in attitude ..
iI think the fishy thing here is that getting the big box booted was a wakeup call.
Some leaders have finally woken up.