FOR IMMEDIATE RELEASE
Staff from the City of Springfield’s Economic Vitality Department will host a public input meeting about the Commercial Street Tax Increment Financing (TIF) Plan 5-7:30 p.m., Wednesday Sept. 28 at White River Brewing Co., 505 W. Commercial Street.
City staff will provide an update on the Special Allocation Fund revenues and the status of projects previously approved for funding (including parking and gateway signage elements). Feedback will be collected on how to best allocate uncommitted funds.
Uncommitted TIF revenues are currently just over $370,000. To date more than $1 million in TIF revenues have been expended on projects including the Frisco Lane access and parking north of Commercial. Only public improvement projects identified in the original TIF Redevelopment Plan can be funded with the TIF revenues.
The Commercial Street Historic District Strategy for Success planning document was approved by City Council in early 2006 with the recommendation to use tax increment financing to establish a revenue source for improvements to help revitalize the area and support business investment. The C-Street TIF Plan was adopted by City Council in April 2008. The redevelopment area’s boundaries are generally from Grant Avenue to the west and Clay Street to the east.
Tax increment financing provides for the redirection of the incremental increase in sales and property tax revenue resulting from a redevelopment project to be used for public improvement project-related costs, infrastructure and capital improvements. No TIF revenues may be used for private projects.
“TIF is based on the premise that property values will increase as the district improves,” Senior Planner Olivia Hough said. “As the value of real property increases and is assessed, the incremental increase in taxes above the base year level is captured as revenue for the TIF.”
These revenue funds are used on public projects such as parking, pedestrian walkways, lighting, signage and other permeant improvements to help support the private investment in the area.
These tax increments are transferred to a special allocation fund that is administered by the City. The City and county also transfer 50% of all incremental sales tax revenues to this fund. The money collected in the special allocation fund is then used to pay directly for the redevelopment project costs or to retire bonds or other obligations issued to pay such costs.
For more information, please contact Senior Planner Olivia Hough at 417-864-1037 or [email protected].