TIF Financing in a nutshell is where the city designates a certain area as a 'TIF' district. In doing so, it takes out a bond and freezes the area at its current property tax level. That means that the blighted building at Lot 42 which just burned down by a 'suspicious' fire which was not investigated will be valued at probably less than what that lot would be worth empty.

Even so, that lot gets frozen at that level.

The city then takes the bond money and either uses it to build improvements in the area, or it simply gives the money to the developer to assist in building a project.

The city still receives the same money that it would have on property taxes had the development not occured, and whatever increase that occurs in the value of the land in the district as far as property taxes is when paid, is paid to the balance of the bond.

The effect of course is that the developer gets assistance on his development, and the city continues to receive the same income it would have received had the development not occured.

Of course, the big losers are the schools which have no say in whether a district should receive TIF designation. These schools which have no say are the ones who end up being short changed since the property tax that the development would have paid to them instead goes to repay the TIF bond.

(and here's where I start editorializing)

Many would say that the developments would not be built without TIF money. As of late, practically any development the OKC area has received this TIF money. This is going to have a disasterous future impact on our schools as we continue to build these high density urban-style developments bringing new students into the district, but not paying a penny more to support these students who will be crowding into our city schools.

Further, developers who would not need to rely on TIF money, and would have developed their property in the same manner without it are beginning to view TIF as something which they are entitled to. Of course, the net effect is a reverse-robin hood (taking from the poor and giving to the rich). At least, that's my opinion.

What do y'all think of TIF? Is it time for it to be done away with? Should we push to amend the current law to require properties to meet specific requirements to qualify for TIF money? Or should things simply be left alone -- is this a necessary tool if we want progress?

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I vote for #2. Good idea to help projects like the Skirvin, that otherwise wouldn't be profitable. Bad idea for projects that otherwise, wouldn't need supplemental financing/tax credits.

Patrick, special bond money could have been appropriated for the Skirvin by a vote of the people -- and I think such a vote would have passed.

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I did a little light reading.. here is what I learned. Correct me if I'm mistaken on some of the data.

A TIF project could involve capping school district property tax revenues within an area for up to 25 years and the additional property taxes would be diverted to the city to help pay the costs of development.

This will adversley affect public schools that rely on property taxes. We need to have a continued reliance on sales tax, developers or regular city budgets.

In Edmond property taxes fund 37% of the General Fund budget. 90% of Building Fund budget and 100% of the 20M Bond Fund budget.

Property tax revenue keeps the district afloat allowing it to build and improve the schools.

Many people move to Edmond/Deer Creek ( and many other areas) knowing they will pay higher property taxes but it is a trade off they are willing to make for better schools for their children.

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I think this is the point Midtowner was trying to make. TIF being used unnecessarily is adversely affecting our schools.

I'm surprised.

This is one of the most troubling things about the U.S. People pay attention to whether there's a gay book in the library (omigod, so so horrible) and they turn the other way when their school system is being plundered by wealthy developers.

Does no one care about this subject? Is it too hard to understand exactly how the schools are being/will continue to be robbed? Can you not see that as we develop these 'boutique' dense developments that we will bring in students which OKC schools will have to pay for, but with no new money?

Am I the only one who is bothered by this???

Money is being stolen from all of us, and we all voted for it. Show a little outrage folks -- it's been well earned. Developments which are guaranteed to turn a healthy profit do not need public financing.

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There are gay books in the library?:tweeted:

QCG: How is that remotely relevant to anything?

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Did anyone read Ann Weaver's article on TIFs in yesterday's {Wednesday) Oklahoman---Metro section? Seems she was able to see only the town's/city's side of TIF (Woo Hoo! Money into the coffers, but she made no mention of the other taxing entities who were being scammed.)

By the way, Mid, you mentioned Gay books in library in this thread first, then you come back on QCG for making a funny out of it; way to go, Mid.

Awesome Oki.

Yeah, it was more of an aside just to show how ridiculous our priorities are.

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