Tax Increment Financing (TIF) is a mechanism used by communities to fund eligible improvements within a designated area. TIF dollars can only be used within an urban renewal (redevelopment) area. An area may be designated as an urban renewal (or redevelopment) area after the following:
- Independent blight study or conditions survey has been prepared and presented first, to the municipality’s Urban Renewal Authority (the Authority) or Board, and second, to its Council;
- Market analysis has been completed in order to determine the potential for future uses within the urban renewal area, and their potential timing;
- Urban renewal plan document and supporting financing plan (impact analysis) have been prepared;
- Stakeholders have been contacted and invited to comment on future uses and required improvements within the area; and
- Council accepts the findings of the conditions survey and adopts (by resolution) the urban renewal plan.