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Will the Tax Increment Financing district result in new or increased
taxes in the TIF district? |
Who
will issue the TIF bonds? |
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No. The City and County
will continue to levy their regular property taxes within the TIF
district in the same manner as they would have levied taxes if the TIF
district was not created. TIF does not provide for the levying of new
taxes. An owner of property within the TIF district will pay no greater
taxes than an owner of property located a block outside the TIF district
boundaries. Because the TIF is designed to increase property values and
encourage private investment in the area, property values are likely to
increase with a corresponding increase in property taxes. (Link to TIF
Graphic) |
The TIF statutes allow
the entity creating the TIF to sell bonds to finance the public
improvements. However, under current plans, the City will not sell
bonds for the Kendall Yards portion of the TIF. Instead, the developer
will pay for the public improvements and the City will agree to dedicate
incremental TIF revenues to reimbursing some of the developer’s costs.
If the City does not receive incremental TIF revenues, the City will
have no obligation to reimburse the developer. Bonds may be issued for
the Neighborhood portion of the public improvements or these could be
privately financed as well. |
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Will the creation of the TIF district result in new or increased taxes
in the City or the County? |
Doesn’t TIF result in a gift of funds to property developers in the TIF
district? |
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No. The City and the
County will continue to levy their regular property taxes in the same
manner as they would have levied taxes if the TIF district was not
created. Because the TIF is designed to increase property values and
encourage private investment in the area, property values are likely to
increase with a corresponding increase in property taxes. |
No. All improvements
paid for with TIF revenues will be publicly owned. |
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Who
will establish the TIF? |
Why
create another taxing district? |
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Current discussions
contemplate the City creating the TIF. Because there are the two taxing
authorities within the boundaries of the TIF, the City and County must
enter into an agreement approving the use of TIF revenues to pay for
public improvements. This presents a tremendous opportunity for
collaboration between the entities and the developer to ensure this
project can move forward. |
TIF districts are not
new taxing districts. TIF does not create new taxes in the district. TIF
only captures a portion of the regular property taxes paid within the
district to help pay the cost of financing public improvements in the
district. |
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Won’t the developers build the project anyway? |
Won’t the City and County be losing tax revenue if they create a TIF
district? |
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Possibly, but not likely
to the level and quality that is desirable. By providing a funding
mechanism for required infrastructure, TIF allows a developer to focus
investment on a higher quality project that provides a direct benefit to
the rest of the community, promoting the standard of development
envisioned by the community in the City of Spokane's Comprehensive Plan. |
No. Both the City and
County will continue to receive property taxes based on the original
value of property within the TIF. In addition, the City and County will
receive 25% of the all new property taxes generated by new improvements
as Kendall Yards develops. |
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How
long does the TIF last? |
What type of public improvements will be installed because of TIF? |
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TIF
districts can have a variety of terms, typically from 20-30 years. |
Under State law TIF
financing can only pay for specific types of public improvements,
including (i) Street and road construction and maintenance; (ii) Water
and sewer system construction and improvements; (iii) Sidewalks and
streetlights; (iv) Park and ride facilities of a transit authority; (v)
Park facilities and recreational areas; and (vi) Storm water and
drainage management systems. |
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What is the value of the public improvement that the TIF will pay for? |
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The dollars generated by
the TIF are directly related to the amount of new investment in the
district, typically for every $1,000,000 in new development, the TIF
district will generate approximately $30,000 that will be available for
public improvement projects. |
