Tax Increment Financing (TIF)
Tax Increment Financing (TIF) may be an option for projects with an assessed new building value of ≥ $1.5 million. In order to enable the development of costly projects such as the development of a blighted area or to incentivize economic development, the City will designate a specific area as a TIF district. The City promises their share of future property taxes (above the current pre-development tax) back to the developer for a period of time. This allows developers to take on projects they might have otherwise passed on. TIF qualifying expenses include:
- Blighted or substandard buildings
- Extraordinary cost to assemble multiple parcels of land
- Site requires remediation of contaminated soils, removal of asbestos, lead based paint, dry cleaner contaminates, or other contaminants
- Project includes underground or ramped parking
- Extraordinary public improvement cost
Applications are accepted anytime. Due to notice and public hearing requirements, allow up to 6 weeks for approvals. For more information or to request an application, contact Economic Development or call 218.299.5441, toll free 877.833.6667.