LVG: Halls development fails the TIF Test

Posted By katie allison granju

LVG questions the appropriateness of granting a TIF to Graham Corporation for a new development in Halls:

Graham is asking for $5 million to be repaid over 15 years from the incremental taxes that - per the proposal - will be generated in the TIF plan area. The plan area covers 1,320 acres and includes 359 taxable parcels, mostly residential properties. Essentially, the idea is that increased property values will result in higher taxes for the county. Graham gets the money for road upgrades to improve access to his shopping center.

Is this a good idea? The historical rationale for granting TIFs was to improve blighted areas. The “but for” provision has likewise traditionally played a role, i.e the imrovements would not occur “but for” the TIF money.

The Graham TIF fails both tests. The site of the shopping center is by no means blighted, and the project will go ahead even without the TIF money.

Mar 24th, 2008

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