Funding Tools
Funding Programs
Utilize and possibly refine the following tools to encourage new investment:
- Tax Increment Financing (TIF)
Capture incremental property taxes to fund public infrastructure - Program 380 (City)
Capture a portion of incremental property taxes and sales tax from site specific development - Section 108
Borrow funds from future Community Development Block Grants (CDBG) to fund specific improvements. - Local Development Corporation
Management/implementation
Tax Increment Financing (TIF)
TIFs have been used successfully to leverage private investment and fund public infrastructure.
Advantages of TIFs:
- Good tool to fund public improvements;
- All taxing jurisdictions (except FWISD) can participate;
- Only incremental increases are captured, taxing jurisdictions continue to collect taxes on the base year.
Disadvantages of TIFs:
- Difficult to fund investment gaps;
- Zone cannot exceed 10% residential;
- Must establish when values are low and area must have new development and growth to capture;
- Requires participation agreements between City and each participating taxing entity; and
- Typically not quick fix, require 5 or more years to stabilize and work effectively.
72
Woodhaven Neighborhood Redevelopment Plan