Tax Increment Financing Jasper presentation explanation

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A presentation explaining the implementation and use of tax increment financing districts.

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Tax Increment Financing Jasper presentation explanation

  1. 1. JASPER REDEVELOPMENT COMMISSION AUGUST 28, 2014 C. Edward Curtin, FASLA Owner CWC Latitudes LLC C. Edward Curtin, FASLA CWC Latitudes, LLC 193 E 925 N Seymour, IN 47274 (M ) 812-447-0826 ecurtin@cwclatitudesllc.com cwcltitudesllc.com Providing freedom of thought, choice and action. Information on Tax Increment Financing - TIF
  2. 2. Existing Companies Staying Here Why are we interested in Redevelopment? Attractive Educational Opportunities Leisure & Cultural Activities Welcoming Culture Available People with Needed Skill Levels Attractive Business Climate Better Paying Jobs Across the Board •Healthier Tax Base •Higher Property Values •Fewer Demands on Social Services •Less Income Disparity •More Opportunities for Our Children •A Healthier Community •Lower Crime Rates •Less Community Tension New Companies Moving Here Existing Companies Expanding Here
  3. 3. What are some incentives for redevelopment and economic development? •Tax Increment Financing •Tax Abatement •Incremental sales and use taxes (CRED Districts and Certified Tech Parks) •Special assessments •Property taxes: Cumulative Capital funds and G.O. bonds •Local Option Income Taxes: EDIT, COIT, CAGIT •Economic Development Revenue Bonds – tax exempt or subsidized •Local Hiring Incentives (new employee income tax) •Other Taxes •Food and Beverage, Innkeepers, Wheel, Surtax •User Fees – utility revenue bonds, availability fees
  4. 4. Why offer incentives for redevelopment and economic development •TIF can induce capital investment in area that otherwise may not have occurred •There is intense competition with other communities offering incentives •Allows for targeting market segments or preferred industries •Fosters retention of existing jobs and/or creation of new jobs •Encourages: existing businesses to reinvest, new businesses to invest •These help increase local tax base, reduce burden to existing tax payers
  5. 5. What is Tax Increment Financing (TIF)? •Tax Increment Financing is a tool that captures the new assessed value or taxes (real or personal) from new private development in an area called an allocation area. •TIF is used to fund infrastructure in or serving the allocation area to further the economic initiatives of the community / redevelopment commission •The “but for” question. The question is would the development happen but for the incentives or assistance?
  6. 6. What is the purpose of TIF? •TIF is a tool that provides incentives and funds infrastructure necessary to foster economic growth and private investment •Fosters orderly economic growth in areas identified by the community •Fosters reinvestment and redevelopment in deteriorating and aging areas
  7. 7. What are the benefits of TIF? •TIF is not an additional tax levy •TIF may be used to fund training with schools up to 15% of collected TIF •TIF is a flexible funding source •TIF can be used with other funding sources •TIF fosters growth in the property tax base •TIF stimulates the local economy •Job creation •Increased spending and income
  8. 8. What are the costs of TIF? •For the life of the TIF allocation area (25 years in Indiana) other taxing entities may not receive the AV associated with the new development •TIF bonds may require general fund back up •TIF bonds may require extra security or higher coverage rate
  9. 9. •Typically TIF is used for infrastructure necessary to foster the development •Roads, walks and curbs •Utilities – Water, storm, sanitary, electric •Rail •Land acquisition and / or site development •Buildings / equipment •Sports facilities •Funding •Can be pay as funds are available •Bonds based on projected revenues of new development •Bonds based on strength of allocation area What can TIF be used for?
  10. 10. What are some TIF examples? •Parking Garages •Roads, utilities and curbs for Industrial park •Apartment complex •Soccer fields •Airport Tower •Downtown development
  11. 11. How TIF Works Base Tax Year 2014 All tax revenues from existing development continues to go to all taxing bodies Only the increased tax revenues from new development goes to the Redevelopment Commission – AV may be released each year Tax Year 2014-2039 Tax Year 2014 and before Tax Year 2039 and beyond All tax revenues from existing development continues to go to all taxing bodies
  12. 12. The Jasper Redevelopment Commission has three overall goals: •Enhance the economic health and vitality of Jasper •Provide the environment for business and industry attraction, expansion, and growth •Increase the city’s tax base
  13. 13. Central to the achievement of those overarching goals are the following objectives: •Collaboration and facilitation with other agencies and entities to implement the goals and objectives of the City of Jasper and the Jasper Redevelopment Commission •Maintain and enhance community assets that attract visitors, residents, business, industry and workforce •Maintain a vibrant, active, attractive downtown •Provide the full range of high-quality infrastructure elements necessary to support business and industry growth, retention and attraction •Continue to provide attractive parks and open space and a wide variety of recreational opportunities •Grow tourism and sports tourism •Integrate arts throughout the City of Jasper •Grow amateur sports
  14. 14. Existing Companies Staying Here Why are we interested in Redevelopment? Because it makes good business sense! Attractive Educational Opportunities Leisure & Cultural Activities Welcoming Culture Available People with Needed Skill Levels Attractive Business Climate Better Paying Jobs Across the Board •Healthier Tax Base •Higher Property Values •Fewer Demands on Social Services •Less Income Disparity •More Opportunities for Our Children •A Healthier Community •Lower Crime Rates •Less Community Tension New Companies Moving Here Existing Companies Expanding Here

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