<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=11Ml7f_14C6kC2Y00" alt="https://img.particlenews.com/image.php?url=11Ml7f_14C6kC2Y00" width="1691" height="1226" ></figure>Across Nebraska, local governments have relied on a tool, one created decades ago by the Legislature, to help spur development. Tax increment financing, or TIF, has increasingly become part of the conversation when new projects arise.Here in Gothenburg, TIF has been used to help fund a number of projects and bring new business to town over the years. Those include businesses such as Curbtender, Good Life Gothenburg, and Fresh Seasons Market, as well as housing projects. While Leader readers have seen references to the funding in other articles, particularly city council recaps, many may still question just what exactly TIF is.TIF is a public tool meant to incentivize the construction of commercial, industrial, or housing projects in areas where it may otherwise not be profitable. First, a public body designates an area as “blighted and substandard.” Then the same group, typically a city council, will vote on plans for projects in the area.If approved, the property valuations in this area are frozen for at least 15 years so that, as the developer improves the land, that developer gets refunded for doing so. After the TIF period ends, the property is taxed normally.What is a “blighted” area?Based on state law, a local government can designate an area “blighted” if it contains deteriorating buildings, defective street layouts, unsafe conditions, or a variety of other qualities. It also has to have high unemployment, low income, old buildings, unimproved land, or a declining population, state law says.An area can also be considered “extremely blighted,” which extends the TIF period from 15 to 20 years. For that designation, an area must have much higher unemployment as well as higher-than-average poverty rates.How does a TIF project get approved?A public hearing and vote must be held in order to designate an area either blighted or extremely blighted. There’s no limit on how big or small these areas can be. From there, a group (typically a developer) submits a plan to a planning commission or some other board that oversees the redevelopment area. The plan has to meet an area’s overall development goals. These proposals also have to contain a cost-benefit analysis, basically summarizing the project’s potential impact, both positive and negative.While the use of TIF has received some criticism, including from the state auditor and current and former state lawmakers of both parties, it remains an important tool to encourage development in Gothenburg.“TIF revitalizes neglected areas by breathing life into underachieving neighborhoods by funding new housing, retail, parks, or transit systems that wouldn’t happen otherwise,” explained Gothenburg City Administrator Gary Greer. “It also creates jobs and economic activity by creating new developments that often bring construction jobs, retail employment, and long-term economic growth.“TIF also improves infrastructure such as roads, sidewalks, lighting, and public spaces,” Greer continued. “This is all accomplished with no Immediate tax hike by using future tax revenue increases, so residents don’t see a direct tax bump.”</div></body>

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Across Nebraska, local governments have relied on a tool, one created decades ago by the Legislature, to help spur development. Tax increment financing, or TIF, has increasingly become part of the conversation when new projects arise. Here in Gothenburg, TIF has been used to help fund a number of projects...

Understand TIF: What It Is, How It's Used

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Across Nebraska, local governments have relied on a tool, one created decades ago by the Legislature, to help spur development. Tax increment financing, or

Understand TIF: What It Is, How It's Used

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