Planning board apprised of TIF process
<p>In a TIF district, revenue from increased tax valuation resulting from economic development, like the recent remodeling projects in Columbia Falls by Xanterra Parks & Recereation, would go into a special fund to promote more economic development.</p>
City manager Susan Nicosia informed members of the Columbia Falls City-County Planning Board of an upcoming TIF district training and orientation session for city staff, elected officials, board volunteers and the public at their Oct. 14 meeting.
Planning consultant Eric Mulcahy noted that the public process to establish an urban renewal tax-increment financing district in Columbia Falls will provide a good exercise in long-range planning for the city.
Nicosia’s comment that part of the TIF process will involve defining and mapping “blight” in Columbia Falls drew laughs from planning board members who recalled working hard to delete any reference to “blight” during the growth policy update in 2012. Nicosia at the time said the word “blight” was not recognized by state government.
The Montana Legislature provided for TIF districts in 1974. Once local voters approve the creation of a TIF district in their city, increases in property tax revenue in the district over the base year is diverted to a special fund devoted to redevelopment and civic improvement projects, instead of going to the general fund or other taxing jurisdictions.
Property values in a TIF district will increase over time as empty lots are filled, large lots are subdivided, buildings are remodeled, expanded or replaced, and city infrastructure improvements are made. Future TIF revenue can be put to use right away by using tax-increment bonds.
Noting that a TIF district in Columbia Falls isn’t expected to generate the kind of money found in Kalispell and Whitefish, Nicosia said her goal was to raise enough money in the TIF fund to help pay for infrastructure improvements for a future hotel project.
She noted that unlike in Kalispell, where huge infrastructure projects were constructed first, using a TIF district to back development bonds, Columbia Falls would use TIF money only after a developer came in and initiated a project.
Nicosia explained that the increase in the city’s taxable value resulting from the construction of a new hotel wouldn’t happen without the assistance provided by the TIF money.
“I think a TIF district is a great idea,” board member Mike Shepard said, adding that while there was no interest at all by the public in serving on a local government review committee, “I hope there’s much more interest in this.”
The initial training session will take place at City Hall on Monday, Oct. 27, from 7 to 9 p.m. A public presentation for interested persons, stakeholders and business owners will take place the next day from 11 a.m. to 1 p.m. Lunch will be provided.