Sheffield Council OKs tax exemption
“The ordinance involves Tax Increment Financing in which property value is enhanced through infrastructure improvements paid with future taxes. If the property is developed and its value increases, the village will receive 38 percent of taxes from it compared with between 9 percent and 11 percent now.
The extra money, which would have gone to Lorain County or the state of Ohio, can be used for development-related infrastructure projects like road or sewer improvements. Sheffield-Sheffield Lake Schools will continue to receive the same amount of money if development occurs through a Payment in Lieu of Taxes program.
TIF districts were originally established to redevelop blighted areas. Critics of them say they are overused and enrich developers at the expense of taxpayers who have to pay for infrastructure rather than developers. California eliminated them in 2011.”
Goodenow, Evan. Chronicle Online 12 March 2013.