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NAPA site calls for Tax Increment Financing, so what is TIF?

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Hastings,Minnesota 55033 http://www.hastingsstargazette.com/sites/all/themes/hastingsstargazette_theme/images/social_default_image.png
Hastings Star Gazette
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NAPA site calls for Tax Increment Financing, so what is TIF?
Hastings Minnesota 745 Spiral Boulevard 55033

TIF stands for Tax Increment Financing.

Essentially, it works like this: Let's imagine the taxes paid on the vacant lot right now are $10,000 a year.

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Let's imagine that once the lot is redeveloped and the NAPA store is built on the lot, the taxes paid will be $17,000 a year.

That means $7,000 in additional taxes will be generated by the development each year.

Let's assume the TIF district is a 15-year district.

The city would take that $7,000 per year in additional taxes and multiply it by the length of the TIF district term, or 15 years. That would equal $105,000.

That $105,000 would be given to the Linn Companies up front to help with construction of the building.

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Chad Richardson
Chad Richardson is the publisher and editor at the Hastings Star Gazette. He was the general manager of the Farmington Independent and Rosemount Town Pages from 2000 to 2007. He previously worked at the Star Gazette from 1996 to 2000 as a photographer and reporter. He also worked as a photographer and writer at the Pope County Tribune in Glenwood.
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