What is a Tax Increment Financing (TIF) Reinvestment Zone?
A Tax Increment Financing (TIF) Reinvestment Zone is a concept, which was developed as an economic development strategy for assisting in the development or redevelopment of economically distressed or blighted areas of a municipality, where such development or redevelopment would not occur solely through private investment within the reasonably foreseeable future.
How is it used?
TIF funds are generated from the incremental increase in property tax revenues over and above a base value established by the municipality in the base year. The purpose of a TIF is to facilitate development or redevelopment of an economically disadvantaged area. This is done through the use of the tax increment funds captured to make public improvements, or assisting in private initiatives, within the zone, thereby enhancing the value of real property located within the zone and any structures attached thereto.
Examples:
- A developer may pay the cost of approved public improvements associated with a private development and be reimbursed over time from the TIF funds associated with the development of the area.
- Public improvements may be paid for directly with TIF funds to encourage further development in the zone.
Project Eligibility:
The following questions are provided to help potential applicants determine project eligibility:
- Does the proposed project leverage dollars? Are other sources of support being sought, if so from whom? How much of the projects cost will come from sources other than the TIF?
- How much is the developer investing in the project?
- Will the proposed project benefit the general public?
- Is the project consistent with TIF Goals and Objectives?
- Does the completion of this project assist in the development or redevelopment of the economically distressed TIF area where development/redevelopment is not occurring solely through private investment?
Administrative Structure & Process:
The City Council appoints a five-member Board of Directors to oversee the development of project and financing plans and act in an advisory capacity concerning development activity and expenditure of TIF funds in the zone. The Director of Economic Development acts as the staff liaison to the Board.
Potential applicants are encouraged to contact the Economic Development Department to ascertain whether portions of the proposed project may be eligible for TIF funding. If so, an application may be submitted to the Economic Development Department for initial screening. Eligible TIF funding requests will be presented to the TIF Board for consideration, which then makes a recommendation to the City Council. If the project is approved by the City Council, the City of Duncanville will enter into a contract for the reimbursement of the amount of the approved funding.
All contractor(s) doing the work on the project must secure appropriate permits before any work is done. All completed work must be certified in compliance with applicable City codes and State laws prior to any TIF funds being expended.
Projects already started will not be considered for funding assistance. Contact the Economic Development Department prior to the project starting, so that they may explain what items can be considered for TIF funds, and assist you through this process.