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February 2007 This issue home | Past issues | Chamber home City Council Establishes Richardson’s first Tax Increment Financing Zone
In November, 2006, Richardson’s City Council took a bold new step to foster revitalization of the U.S. 75/Central Expressway Corridor area by creating the city’s first Tax Increment Financing (TIF) Zone. The TIF encompasses nearly 900 acres along both sides of Highway 75 between Campbell Road and Spring Valley Road. Tax Increment Financing is an economic development tool available to cities (Chapter 311 of the Texas Tax Code) to publicly finance public improvements consisting of, but not limited to, public buildings, streets, alleys, parks, schools, sidewalks and other infrastructure improvements within a defined area to be known as a TIF Zone, which can also be called Tax Increment Reinvestments Zone or TIRZ. As redevelopment occurs within the zone, the taxable value of real property in the area is projected to increase which, in turn, generates an increase (new increment) in property tax revenue. The City will take 80% of the new increment revenue and place in a fund which then reimburses certain developer costs (acquisition or demolition) or public improvements and infrastructure. TIF is not a new or additional tax and the increment focuses only on changes to real values, not Business Personal Property (BPP). The Richardson TIF is proposed for 25 years and, though not yet finalized, the city fully expects to have both RISD and Dallas County participation for up to 20 years. TIF’s have been used for many years throughout the DFW area for a variety of projects. The city of Dallas has over $1.7 billion worth of TIF projects currently being managed. Area projects such as Montgomery Farms in Allen, Deep Ellum, Uptown, and Victory in Dallas, Garland’s IH30 Corridor, A TIF gives a city the ability to motivate a quicker redevelopment cycle and provides a separate funding mechanism for rebuilding required infrastructure to support redevelopment and supports some of the extraordinary costs facing redevelopment. Having a TIF enables the city to avoid using city debt and city capital funding for some redevelopment improvements, while affirming a positive stimulus for redevelopment. Depending on the participation of other taxing jurisdictions (RISD and Dallas County), the TIF can leverage the city’s tax commitment by much as $.45 on every $1.00 of public capital reinvestment as shared support from other taxing entities. The Richardson Chamber’s Board of Directors enthusiastically endorsed a resolution in support of the creation of the TIF and presented it to the City Council at the public hearings on the TIF plan.Action News is a monthly publication of the Richardson Chamber of Commerce Communications Department. To unsubscribe, e-mail administrator@telecomcorridor.com. Please provide your name, company, phone number and e-mail address. |
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