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Summary of Economic Development Tools <br />Project Foxtrot: Projections <br />77,000 square foot facility <br />NOTE: said tools could be utilized to pay the City back for a land write down. <br />Tax Increment Financing (TIF) <br />Tax increment financing works by capturing an increment of local property taxes (City and County) <br />generated from a new project; then redirecting said tax increment and applying to eligible project costs. <br />Often times, project costs include land/building acquisition and development improvements. Requires a <br />TIF agreement. <br />77,000 facility (committed) <br />9yr $191,469 PV, $243,956 FV <br />25yr $410,536 PV, $704,762 FV <br />ABATEMENT (100%) <br />Tax abatement works by capturing and redirecting local property taxes and applying them to eligible <br />project costs. The portion of the local property taxes collected can be any combination of City, County or <br />School District property taxes (likely only City); and does not limit the captured portion of taxes to the <br />increment created with a new project (like TIF). Often times, project costs include land/building <br />acquisition and development improvements. Requires an abatement agreement. <br />77.000 sa ft (committed) <br />5 yr $71,233 Principal, $84,155 Total <br />10 yr $129,669 Principal, $168,310 Total <br />15yr $177,606 Principal, $252,465 Total <br />20yr $216,932 Principal, $336,620 FV <br />ANNUAL PROPERTY TAX GENERATION <br />TOTAL GROSS: $167,183 <br />CITY ONLY <br />GROSS: $37,097 ($83,950 Tax CapacityX.4419 Tax Rate) <br />NET: $20,669 (less fiscal disparities, market value taxes, small taxing jurisdiction, etc.) <br />