RENEW MOLINE

FINANCIAL INCENTIVES

A variety of available development incentives exist to assist with project implementation.  For a more complete description of these incentives the following link will direct you to the City of Moline's "Business Incentive" webpage: City of Moline Business Incentives

MORE ABOUT TIF

The partnership between Renew Moline and the City of Moline has benefited greatly from the well-known, but often misunderstood, financing tool called "TIF," an acronym for "Tax Increment Financing."

Established by Illinois state law, TIF actually originated in California and is in use in most states. The concept is that a blighted area in a community that needs redevelopment can be identified as a "TIF District." The City can then capture property and sales tax "increment" (the additional tax collected) created by redevelopment projects within that district for a set period of time - the "life" of the district.

When the district is identified, a base line for property and sales taxes already being collected is established. During the life of the TIF, all taxing bodies continue to collect the amount of tax revenue they were collecting at the time the TIF District was identified. But the additional property and sales tax that is collected as a result of increasing the value of the property in the district and the additional sales generated by the redevelopment projects is collected by the City. The City can then spend that additional money on projects that support redevelopment within the district.

Download MOLINE TIF MAP HERE

Download ITIA PRESENTATION HERE

Download "WHAT IS TIF" HERE by S.B. Friedman & Company

State legislation governs what this revenue can be used on, and what is "TIF Eligible." Generally speaking it enables the City to partner with developers to provide the public improvements that most redevelopment projects require, such as sewers, streets and the like.

When the TIF District's life expires, the additional revenue created by the redevelopment of the formally blighted area is distributed to all taxing bodies.

The advantage of TIF is that it allows a redevelopment project to pay for public improvements without incurring an additional burden on the City's existing revenue sources which is why you will hear that "the project pays for itself." In other words, a redevelopment project in a TIF District generates additional tax revenue which is captured and used for the public aspects of the project to the mutual benefit of all - the developer, the City, the people who live and work and play in the project area, and to those who wish to invest in the project.