Tax increment financing (TIF) is funding mechanism used by cities to aid redevelopment. Controversial at times, some cities make greater use of it than others. Over the years, Minnesota’s laws regarding how TIF can be used have changed. Cities with significant redevelopment areas tend to make greater use of TIF than more stable cities.
Example: In the agenda for Saint Louis Park’s City Council work session on October 26th, there is a chart comparing “Captured TIF as a % of Tax Base” for several Twin Cities municipalities, as well as city bond ratings and the tax rates.
The work session report has additional information about how Saint Louis Park is using TIF today under current state law and how the market value of all the active TIF districts have appreciated since their start dates. To date, the market value of Saint Louis Park’s active TIF districts has increased +750%.
I always like a good map, and the TIF report in the work session agenda did not disappoint. Here is the map of all of Saint Louis Park’s active AND proposed TIF districts in 2015.