Tax Increment Financing (TIF)
Description of the City’s Tax Increment Financing Incentive program.
Tax Increment Financing is a development tool designed to help finance eligible property improvements in designated areas of redevelopment (“TIF districts”) by utilizing the new, or incremental, tax revenues generated by the project after it’s completion.
How it works:
Under TIF, property taxes within the TIF district are frozen up to a maximum of 23 years and the property owners then make Payments in Lieu of Taxes (“PILOTS”) to a special allocation fund. The Downtown Ste. Genevieve Redevelopment Plan (“Plan”) was established in 2013 so there are 18 years left in the Plan.
Also, 50% of any new local Economic Activity Taxes (“EATs”), such as local sales taxes, payroll taxes, and utility taxes are paid into the special allocation fund.
Those special allocation fund proceeds are then used to reimburse developers for eligible project costs or to retire the indebtedness that was incurred to cover those project costs.
Application
The process to apply for and get approval for TIF takes 4 – 6 months and requires approval by the Board of Aldermen. For more information, contact Martin Toma, City Administrator, at (573) 883-5400.
(Link to Downtown Ste. Genevieve Redevelopment Plan document)
(Link to Downtown TIF exhibit A)
(Link to Downtown TIF exhibit B)
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