• the town can use a portion of new revenues associated with the development for the General Fund and a portion to finance Town infrastructure and economic development;
• the town is able to return a portion of new property taxes generated by the development to the developer to help offset site development costs and leverage private investment;
• The Town is able to financially benefit through a TIF arrangement because through TIF, the State allows the Town to “shelter” new value within the TIF from calculation of State Certified Valuation. In doing so, the Town avoids reductions in State Aid to education and the State Municipal Revenue Sharing program, and avoids increases in the County Tax. The result is a “win- win” for the Town and the Developer.
Without a TIF the Town is fiscally penalized by increases in property valuations through these three programs. With a TIF the Town can avoid negative fiscal impacts and can use fiscal savings through TIF to assist development and support its own infrastructure and economic development efforts. After 25 years, all property taxes generated by the development will accrue annually to the Town General Fund.