Understanding The Use Of Tax Increment Financing Districts
“If you’ve been to a recent Wichita City Council meeting, you’ve most likely heard the term, “tax increment financing,” which is usually shortened to TIF. These redevelopment incentives are common throughout the U.S.
But what exactly are TIFs? And how are they being used to help shape the development of downtown Wichita? KMUW’s Sean Sandefur has this report…
Real estate developer Dave Burk is looking down a rough, unkempt stretch of Mosley Street in Wichita’s Old Town neighborhood. It’s about two football fields long, sitting between 2nd and 3rd streets.
“It’s always been part of my master plan for the Old Town area, to get all the streets redone, that type of thing,” Burk says.
This area is the last bit of blighted real estate within the true boundaries of Old Town, according to Burk. But it won’t stay that way for long. This area is part of a new tax increment financing project that’s already received support from the Wichita City Council.
“It’s hard to rehab these older buildings without good infrastructure,” he says. “And that’s one of the city’s duties, is to provide infrastructure.””….
While there’s no doubt property values often increase inside Tax Increment Financing districts, Kriz says TIF investment isn’t always a slam-dunk in terms of economic development.
“Most of the studies have indicated that there’s either a small, positive impact or no impact overall,” he says.
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Sandefur, Sean. KMUW 20 January 2015.