Someone posted this question about a week ago. Hopefully, they got an offline answer. But, if not - here is a public answer.
TIF???? What does this mean?
TIF = Tax Increment Financing
Here is an explanation that I found on a Pennsylvania web site, but the concept is the same in Minnesota. TIF financing sometimes gets a bad rap in this forum, but many people consider it a very important and valuable tool for developing some sites!
--------- TIF Explanation
Pennsylvania's small towns and communities need all the help they can get to encourage local growth and build local assets. One of the most effective financing tools on hand to get the job done is Tax Increment Financing (TIF). Using TIF, a community can borrow money via bonds, to improve a distressed property, and repay the bonds with future tax revenue generated by the improved property.
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In summary, a community (in our case St. Paul) would use future tax revenue of a development site to help finance the development of that site. This amounts to tax subsidy for the developer of the site, because they are able to use their own tax dollars to help pay for their development.
Does this help?
If anyone has additional questions about TIF, please ask. We have some real experts in our forum.
Tim Erickson Hamline Midway [EMAIL PROTECTED]
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Tim Erickson http://www.politalk.com St. Paul, MN - USA 651-643-0722
[EMAIL PROTECTED] iChat/AIM: stpaultim
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