Posted: 12:00 a.m. Saturday, March 9, 2013
HUBER HEIGHTS —
Local governments use tax increment financing districts to raise money to pay for projects by using the increase in property value created by the redevelopment to channel revenue back into improvements. TIF creates funding for public or private projects by borrowing against the future increase in these property-tax revenues.
TIF money only can be spent on public infrastructure and development projects. Huber Heights has designated seven areas in the city as TIF districts, totaling nearly 4,000 acres.
The Montgomery County TIF district — about 3,000 acres — was established in April 2003. That district includes commercial development such as the aquatic center, YMCA, Meijer, Gander Mountain, Walmart and a new Fifth Third Bank.
At the start of the year, that TIF account had a balance of $1.7 million and it will generate about $1.8 million this year, assistant city manager Don Jones said. That number is expected to increase as new development continues within the district.
“The funds generated by the economic development within this district will be used to fund the construction of the music center,” Jones said. “Investing TIF dollars in this type of a project generates a return on investment, generates money to pay for itself, and raises the quality of life for the entire community.”
Vice Mayor Mark Campbell said the music center is budgeted for $18 million because the city determined “what was coming out of the ground and projected to come out of the ground over the next 30 years.”
The city is essentially “borrowing against itself,” Campbell said, because what comes into the TIF has to be equal to or more than the loan payment. The city has not determined who the lender will be, nor the amount at this point, Campbell said.
“We’ll borrow most of it, if not all of it,” he said.