Also wanted to point out that not all increases in assessed values are due to development.

Over the 25 year TIF term, properties will naturally appreciate which raises the assessed value and the resulting property taxes (1% of assessed value).

Also, when properties are sold the assessed value is generally adjusted to reflect the most recent sales price, as a recent transaction is always the best estimate of true value.

So in the case of TIF #2, a big part of the reason the budget went from the original $47.5 million to the current $126 million is the natural appreciation.

As an example: Cotter Ranch Tower is currently generating about twice the property tax it did in 2000. Since this is considered an "indirect" property (one that hasn't received TIF funding) 50% of that property tax increase since 2000 goes into TIF #2 and the other half goes to the County as usual. Property taxes have doubled since 2000 at Leadership Square as well.