Marble Falls EDC considers supporting TIF for downtown area
MARBLE FALLS — City leaders are considering a tax-financing tool that channels incremental increases in property values so that “eyesores” in the downtown area can be revitalized.
The discussion at the July 5 Economic Development Corp. meeting revolved around the concept of tax increment financing, or a TIF, which is widely used in other cities to create funding to improve under-developed or distressed areas.
“We have some eyesores,” said EDC Executive Director Christian Fletcher. “One thing that’s called out specifically in TIF financing is inadequate sidewalks.”
Marble Falls is considering forming a TIF, said City Manager Ralph Hendricks. The downtown area would be targeted, according to officials.
A TIF is a funding tool used to repair and build infrastructure in a designated zone or district. As property values incrementally rise over a period of time, those taxes in that district are dedicated to paying down the project’s debt.
A portion of the taxes are paid by the businesses or residences in the zone.
According to models in other cities, as the site’s value increases, sales taxes and even the availability of jobs may improve.
“One reason to do a TIF is to draw in new business,” Hendricks told the EDC.
An approved TIF involves creating a board which would assess, identify and potentially fund improvement projects in the TIF zone.
TIFs exist in Taylor, College Station, Allen and Lewisville, Fletcher said.
Officials said a TIF does not have taxing powers, however, improvements made to a defined area could affect the amount of taxes paid by merchants or residents within the zone.
“Obviously, taxes will increase because the property values will increase,” EDC board member Judy Miller said.
EDC members voted to continue research on a TIF and what role the nonprofit arm of city government would play.