The City of Good Neighbors

Tax Increment Financing Assistance Application

Policy and Guidelines

General Policy:

While tax increment financing (TIF) is an important and useful tool in attracting and retaining businesses, it is essential that it is used appropriately to accomplish the City’s economic development goals and objectives. The fundamental principle that makes TIF viable is that it is designed to encourage development which would not otherwise occur. The City is responsible to assure that the project would not occur “but for” the assistance provided through TIF. It is the policy of the City to consider the judicious use of TIF for those projects which demonstrate a substantial and significant public benefit by constructing public improvements in support of developments that will create new jobs, retain existing jobs, eliminate blight, strengthen the economic base of the City, increase property values and tax revenues, create economic stability, and stabilize and upgrade existing neighborhoods and areas. Priority will be given to projects that meet these goals.

Policy Guidelines:

The following criteria are to be used by the City to evaluate TIF applications:

  1. The project must be located within the established TIF District
  2. Each TIF applicant must demonstrate that without the use of TIF, the project is not feasible and would not otherwise be completed. (projects completed/partially completed prior to the submission of this application are not eligible)
  3. Each TIF applicant must possess the financial and technical ability to complete and operate the project.
  4. Projects involving retail development that is targeted to encourage an inflow of customers from outside the City or that will provide services that are currently unavailable or in short supply in the City will be viewed more favorably.
  5. Allowable uses of TIF assistance funds include: Land acquisition, planning, legal, engineering or architectural services, demolition of buildings and clearing of property, construction costs of infrastructure improvements, rehabilitation of existing structures, and financing costs. (Costs incurred prior to approval from the City will not be eligible)

The City enters into “redevelopment agreements” with businesses/developers that either locate to or make substantial improvements within the TIF district. Through this agreement, the business/developer agrees to complete the project and make certain improvements in return for financial support from the City. A business/developer cannot assume the City will financially participate in the project. Decisions are made on a projectby-project basis and must receive City Council approval before the staff can process any assistance.