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Tax-Increment Financing is an economic development tool
established by the State of Washington. TIF is used to pay for publicly
owned streets, sewers, sidewalks, parks, and other improvements.
TIF is considered when local government and a developer define a project
with significant public infrastructure requirements that cost more than
either party can pay alone. Bonds sold by local government or private
financing pay for public improvements, and then a portion of the
increased property taxes generated within the district is used to pay
back the debt. Seventy-five percent of the increased property taxes is
used to repay public infrastructure costs, and 25 percent of the
increased value goes to government to pay for public services. Once the
debt is paid, all the increased property taxes go to government.
A majority of funds raised through this proposed TIF district will pay
for public improvements inside the Kendall Yards development, but some
of the funds will be available for neighborhood projects inside the TIF
boundaries.
The proposed Kendall Yards development is planned for an 80-acre site
located along the north bank of the Spokane River west of Monroe Street.
It is expected to include up to 2,600 residential units and up to a
million square feet of commercial, retail, and office space once it’s
completely built out. |
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