TIF: Groton's Pathway to Placemaking
The Public Hearing held on Feb 27 (shown here) reflects months of effort from the Tax Increment Financing (TIF) Steering Committee and experts from Camoin Associates to bring a proposal to the Town Council. TIF represents a valuable tool for attracting developer investment to create vibrant mixed-use villages in key locations throughout Groton.
The Town Council officially adopted the policy on March 6, 2018.
What is Tax Increment Financing, or ‘TIF’?
TIF allows developers, businesses, and municipalities to leverage future “incremental” property tax revenues from new development of a specific project or district.
As a financing method used to catalyze economic development, TIF allows future property tax revenues from development project to be dedicated and utilized to support the project and related economic development. Property tax benefits from a project can be used to help finance the project or to support public and private development costs.
Who Uses TIF?
Communities: Use TIF to catalyze key economic development projects or districts, fund infrastructure investments, finance economic development programs, and support economic and business development.
Developers: Use TIF revenues for credit enhancement and to help offset development costs for site and building improvements, land acquisition, operating costs, and other development costs.
In October 2015, the Connecticut General Assembly overhauled its existing TIF ordinances and approved new legislation, An Act Establishing Tax Increment Financing Districts, P.A. 15-57, which now allows communities statewide to use TIF to maximum effect.
The State’s original TIF legislation created a complex and burdensome process which discouraged its use by communities. The process also required the participation of multiple state agencies including the Connecticut Innovations Board, the State Bond Commission, and Joint Standing Committees. The new legislation extends the control to individual municipalities to establish their own tax increment districts in accordance with the requirements.
Another improvement in the new legislation is that municipalities are permitted to form TIF Districts that include both the project site itself as well as other nearby properties that will experience property value increases as a result of the project.
More details surrounding the process of adopting a TIF ordinance and creating TIF districts can be found in the Quick Links.
Source: Camoin Associates
From The New London Day