As California’s TIF goes, so might Colorado’s
“The California Supreme Court issued a bombshell decision recently that effectively shuts down that state’s 400 local redevelopment agencies. It was a victory for Gov. Jerry Brown, who is seeking to redistribute redevelopment funds to schools and basic services, and help close California’s $26 billion budget deficit.
It was a defeat for cities, effectively terminating the use of the state’s most valuable local economic development tool. The California case is relevant to Colorado, as we appear to be moving down a similar path.
At issue was the use of tax increment financing (TIF) to assist in the redevelopment of commercial areas. In California, TIF allows proceeds from increases in property taxes to be captured for investment in designated geographic districts. The original intent of TIF was to cure blighted conditions in city centers. It’s a common tool, used in more than 40 states, including Colorado.”
Segal, Brad. Denver Business Journal 13 January 2012.