[Winona Online Democracy]

As I understand the process - the government unit which establishes the TIF
locks in the tax values at the then current values.  The county and schools
continue to get taxes but at the locked in rate.  All increase in value and
the taxes over the base line go to the TIF until the TIF is reimbursed at
which time the TIF is dissolved and the other government units then start to
receive their fair share.  During the process the owners of the property pay
the same taxes as they would if the TIF didn't exist with the TIF capturing
all the increases in taxes for the repayment.


Paul Double

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On
Behalf Of [EMAIL PROTECTED]
Sent: Thursday, March 17, 2005 1:10 PM
To: WOD
Subject: [Winona] Paying for the Pelzer project

[Winona Online Democracy]


Could any of you WODs explain, in plain English, how establishing a Pelzer 
Street area tax increment district would make up for the six million dollar 
shortfall? And don't assume I know how a TIF works, because I keep
forgetting. 

I sort of think that the money comes from the increased taxes that economic 
activity and property values that a project generates. Those taxes would be 
dedicated to paying off indebtedness incurred by the project.

J. Finn

 

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