The Osage Beach Board of Aldermen has signed off on changes to the city’s TIF policy. The changes impact items such as completion performance, revenue protection for the city, pay-as you-go-reimbursement and tax protection during construction. The were a total of eight minor changes to the policy.
Overall, the changes will not change the overall procedure for applying for a TIF but do have an impact on some of the details regarding how a TIF will operate in the future.
Although no major changes were made to the policy, the changes were needed to reflect the experience Osage Beach has had working with various TIF projects such as Dierberg’s, Osage Beach Commons and Arrowhead Centre.
According to the Missouri Department of Economic Development, Tax Increment Financing permits the use of a portion of local property and/or sales taxes (depending on what type of agreement) to assist funding the redevelopment of certain designated areas within your community. Areas eligible for a TIF must contain property classified as a "Blighted", "Conservation" or an "Economic Development" area, or any combination thereof, as defined by Missouri Statutes.
A TIF may be used to pay certain costs incurred with a redevelopment project. Such studies, surveys, plans, financial management, legal counsel, land acquisition and demolition of structures, rehabilitating, repairing existing buildings on site. A TIF can also include building necessary new infrastructure in the project area such as streets, sewers, parking, lighting and relocation of resident and business occupants located in the project area
The idea behind a TIF is the assumption that property and/or local sales taxes (depending upon the type of redevelopment project) will increase in the designated area after redevelopment, and a portion of the increase of these taxes collected in the future (up to 23 years) may be allocated to help pay the certain project costs, partially listed above.
TIF’s are commonly used in conjunction with Community Improvement Districts and Transportation Development Districts.