Village to decide whether to establish TIF district

May 27, 2015

by Florence Hallford & Keith Stewart
keith@newsprogress.com

Guest Tony Schuering, vice president of Municipal Consulting Group, LTD, spoke to the Lovington Village Board earlier this month about the possibility of starting a TIF district in Lovington.
The initial concerns of putting in a district involved cost, with a start-up expense around $30,000, but which can be recovered through TIF.
TIF districts work by first identifying the base value of property within the proposed district. This is done so as to ensure that all property taxes paid on this base value continue to go to all of the established and governing taxing bodies. After the district is established, however, any taxes paid on the value over the base amount are diverted into a special TIF fund that ultimately is reinvested in the TIF district either by making improvements to roads and other infrastructure, promoting the area to potential new businesses, or building new public buildings. The growth that in turn creates the tax increment occurs as a result of increased property value, which is often a result of increased development, which, in a cyclical nature, is derived from the increment.     Login or Subscribe to read the rest of this story.