MELISSA GREENE

Council approves TIRZ to generate revenue for infrastructure

Posted: 08/30/2010
Author: MELISSA GREENE

The city’s Tax Increment Reinvestment Zone quietly came into being Tuesday when council members unanimously and without discussion voted to adopt Ordinance No. 1464.  A TIRZ is a political subdivision created by a city to implement tax increment financing, a method of using future gains to finance current improvements. Once a site is developed, the increased value and investments increase tax revenues. This increase is referred to as increments. A percentage of the increment is dedicated to financing the debt issued to pay for the project.