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City Council’s expectations are that a residential TIF would help to:
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Tax Increment Financing (TIF) districts help municipal governments stimulate redevelopment in a designated area. Using this tool, the City can reimburse property owners for certain expenses using the property tax revenue that new development within the district generates. It is important to note that a TIF district is not an additional tax and does not impact zoning.
When a TIF district is established, the current net taxable value (NTV) on each property within the TIF district is set at a “base” value. Funds are generated by the increase in net taxable value of properties located within the district as those parcels are redeveloped. The difference between the “base NTV” and the new NTV, what is referred to as the “increment”, is rebated back to the municipality. This increment, or rebated real estate taxes, can be used to reimburse developers for approved costs, and/or to cover the municipality’s cost of improving the district.
The rebates are reimbursement for eligible project costs and are tied directly to the property tax increment created on the site of their new development. The City and the property owner negotiate the reimbursement rate based on the new improvements they create. This contract continues until the point at which the property owner has been paid the agreed-upon reimbursement, or when the TIF expires, whichever comes first. TIF 2’s expiration date is December 31, 2035.
Specific expenses eligible for reimbursement include:
Yes, the municipality can also use the money in the special TIF fund to make public investments such as:
The benefits of a residential TIF program can include:
No. A TIF District is a financial incentive district and does not impact zoning. The only way that a business could locate within a neighborhood is if it conformed to the zoning codes already in place there.
Please refer to the map at this link: www.explorecarbondale.com/815/TIF-District, or contact the Economic Development Office at 618-457-3232 to find out if you qualify.
All projects are required to adhere to the Residential Tax Increment Financing District Architectural Design Standards by complying with at least two (2) design elements for the appropriate category of the work to be done.
For example, if a roof is to be replaced, it must meet the pitch requirements of 5:12 or greater and the materials or color be different than the immediate surrounding homes. If the siding is to be replaced, it must be one of the approved materials of brick, natural or faux stone, cement, wood, or vinyl and also vary in color or materials from immediately surrounding homes.