Columbia Council of Neighborhoods

According to Wikipedia

TIF is a tool to use future gains in taxes to finance current improvements (which theoretically will create the conditions for those future gains). When a public project such as a road,

school, or hazardous waste cleanup is carried out, there is often an increase in the value of surrounding real estate, and perhaps new investment (new or rehabilitated buildings, for

example). This increased site value and investment sometimes generates increased tax revenues. The increased tax revenues are the "tax increment." Tax Increment Financing dedicates

tax increments within a certain defined district to finance debt issued to pay for the project. TIF is designed to channel funding toward improvements in distressed or underdeveloped

areas where development might not otherwise occur. TIF creates funding for “public” projects that may otherwise be unaffordable to localities, by borrowing against future

property tax revenues.

By Josh Cruse

The City of Columbia continues to look for ways to revitalize Columbia. One idea has been a TIF, or Tax Increment Financing. Councilwoman Tamika Issac Devine explained the details of the plan to the Columbia Council of Neighborhoods on Wednesday, January 27.

The object of the TIF is to create revenue by taxes. The revenue created by the TIF will go to redeveloping projects that Columbia City Council hopes will attract new businesses, enhance the tax base, and eliminate the threat of blight in Columbia. Blight is determined when an area meets at least five of the 14 factors of the blight test such as dilapidation, deterioration, excessive vacancies, overcrowding of structures and community facilities, or depreciation of physical maintenance. An example that Devine used to explain how the TIF system would work is the property on Bull Street that is currently for sale. Presently the tax value of the property is $0; once the property is sold the tax value will rise. The difference between what the tax value was before it was sold and what it is after it is sold is what will go back into the city, possibly to help fund for future projects.

One important issue that Devine wanted to clear up is that while the redevelopment plan provides the city with legal basis to issue tax increment bonds when considering future projects, it does not obligate the city to use them. Devine says that it will be determined on a project to project basis. Ideally, for the TIF to pass, the county and school district have to be on board with the city. However, presently they are not, though the city is still in talks with both. Devine says that the majority of city council is willing to go on with the projects with or without the participation of the county and school district.

Two readings have to be done of the redevelopment plan before it can be approved. A public hearing will be held on Thursday February 4 concerning the TIF plan.

Devine also announced that Fire Chief Bradley Anderson will retire effectively in February after 33 years in office. Deputy Chief Aubrey Jenkins will replace Anderson.