Beware of Tax Increment Funding

July 5, 2011 at 2:38 pm 2 comments


Here’s another phrase to add to our vocabulary of government abuses; tax increment funding or TIF.

What is this you ask?  TIF is a method to use future gains in taxes to finance current improvements (which theoretically will create the conditions for those future gains). When a development or public project is carried out, there is often an increase in the value of surrounding real estate and perhaps new investment.

In other words, it yet another government scam to try and increase property values to get more tax money.

In fact, it is being implemented in New Hope;

From the May 21 New Hope City Council Work Session;

Mr. Greg Johnson illustrated TIF fund balances. He noted four TIF districts have been de‐certified. He stated of the seven remaining TIF districts there are four that will decertify on December 31, 2012. He stated as of December 31, 2010, the city has approximately $5 million available for development activities, and it is estimated that amount will increase to $6.7 million by the end of 2012. The Council discussed the allowed use of TIF funds for housing activity,
acquisition of land or property, and infrastructure improvements. Mr. Casserly noted funds cannot be utilized for community centers, ice arenas, or city halls as such projects would not generate new taxes.

To put it simply, they will be using our tax money to generate……more of our tax money!

Where do New Hope plan to use this money?  Here is a short list of sites being considered;

Council also expressed an interest in considering the following properties for TIF expenditure/acquisition, in conjunction with a redevelopment plan:
• Wells Fargo drive‐thru site
• 7700 42nd Avenue (Universal Color)
• 7820 42nd Avenue (Gas and Splash)
• 8001 Bass Lake Road (former Lyndale Garden site)
• Winnetka Learning Center
• Soccer fields (near former Hosterman site)
• 6113 West Broadway (currently pursuing through tax forfeiture)
• 7601 and 7801 62nd and Lincoln estates
• Properties near city center (7231 42nd, 7181 42nd, 7141 42nd)

One thing we will give New Hope some credit for is providing a nice summary of a work session.  Perhaps whoever writes it can give Crystal a lesson;

http://www.ci.new-hope.mn.us/eservices/documentcenter/pdf/minutes/council/032111ccworkminutes.pdf

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Entry filed under: New Hope, Taxation.

We’re all in this together! Communites are Fighting Agenda 21 and they are…..like Charlie Sheen Says….WINNING!

2 Comments Add your own

  • 1. MinnDakota  |  July 5, 2011 at 3:38 pm

    Now, you have given me another local government issue to research. Is there no end to the methods by which governments reach into the pockets of its citizens? No, I guess there’s not.

    Reply
  • 2. numbersguy  |  July 5, 2011 at 5:49 pm

    Nice article. I will have to review this information and working session notes. Thanks

    Reply

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