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