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Finance committee discusses TIF, Sunday liquor sales

Tax increment financing (TIF) is a tool available for governmental bodies and has the ability to capture and redirect new property taxes paid by new private development to promote development, which may not have occurred without the assistance.
With a couple of possible redevelopment opportunities and new council members, the Glencoe City Council reviewed the process at its finance committee meeting Wednesday, Feb. 22.
The city has the ability to create a TIF district to provide a tax incentive to a new development with the additional tax amount generated in that district.
The city has used this tool with such developments as the Miller Manufacturing expansion and  Grand Meadows Senior Living.
The private business pays the new tax amount and the city captures the increased amount to provide the incentive.
For example, if a bare lot generated $500 in property taxes and the new development generates $5,000 in property taxes, the difference of $4,500 can be used as an incentive over a set number of years to promote new development within the city or create redevelopment opportunities.

Read the full story in the March 1 edition of The McLeod County Chronicle.