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The original item was published from 12/15/2020 2:24:00 PM to 12/20/2020 12:00:02 AM.

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Posted on: December 15, 2020

[ARCHIVED] City Council Decertifies Two Tax Increment Financing Districts

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City Council Decertifies Two Tax Increment Financing Districts (TIFs)

During its December 12 meeting, the City Council terminated TIF #7-1 that supported the development of the Target store location.  The TIF was terminated as it has completed all eligible projects, all obligations have been paid in full, and the City Council determined it was in the public's best interest. 

TIF districts may be created only when they can meet many conditions including what is commonly referred to as a “but for” test.   That is, “but not for the support provided by a TIF, jobs and improvements would not be created in the community."

TIF #7-1 was created on April 9, 2001, and supported substantial improvements on and around what is now the Target store. The TIF resulted in a substantial increase to the City’s job base and adjusted market value.  The increase in valuation was $5,342,670, or a 267% increase, over the duration of the TIF.  Terminating the TIF will place the properties back on the general property tax rolls for taxes payable in 2021. The increase in valuation is estimated to generate $134,200 for all local taxing jurisdictions and $73,450 for the City specifically. This increase in property taxes will reduce the tax burden on all taxpayers, as the property tax burden is spread over a larger base which will now include the decertified TIF #7-1 properties.

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