The unique program adopted by area taxing entities to finance a much-needed downtown revitalization will be reviewed again in coming weeks after the zig-zagging boundaries of the Tax Increment Financing Zone were redrawn to include a possible new development near a busy intersection in the city.
The TIF Zone, sponsored by the Brownfield Industrial Development Corp and adopted by all local eligible taxing entities will change slightly – if approved by those same participating entities — to include land recently purchased in anticipation of development there.
The land in question includes highway frontage between Stripes convenience store and the Turtle Hole car wash on the Tahoka Hwy east of the Cedar St. intersection.
Incorporation of the land into the TIF Zone will require an amendment to the plan already adopted by taxing entities. Jobe said the city council would consider it at a meeting in the near future, as soon as details are provided for consideration.
Rumors have circulated that the land already purchased will be developed for either a new hotel or possibly a small apartment complex. The city was approached last year about its lots for development of duplex housing, but that deal has not materialized to date.
BIDCorp director David Partlow made the rounds to each taxing entity when the TIF was introduced and he told the Brownfield News he is prepared to revisit each of them to propose the amendment.
“A TIF Zone is a reinvestment zone that allows for a way to generate funds to improve infrastructure or a blighted area to induce growth within a city,” local attorney Jimmy Hammons told the council last year. “Basically, it’s a sophisticated type of financing to fund improvements.”
Any increase in property value that occurs within the TIF Zone over the next five years will benefit the downtown renovation by diverting only the difference in taxes incurred because of the rise in value. It is not a tax increase, because the property would be taxed regardless, but the adoption of the TIF Zone reserves those funds for the specific use.
“It’s a blighted area on a main thoroughfare and I was asked to find a way to improve it,” he said. “This won’t happen overnight. We’re going to have to wait a year to find out approximately how much money we’ll be bringing in. “Once we know what we’re going to make, we’ll create a TIF Zone board and then it will meet and decide what to do next,” Partlow said.
To view the TIF Boundaries, click here.