Agenda - 05-18-2010 - 8b - Laserfiche WebLink

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Levengood 4 the whole inconclusive. Weber, Batta, and Merriman found mixed results among industrial districts in Chicago, and Smith, like Man and Rosentraub, observed a positive relationship with residential property value. Beyond their effect on property values, TIFs may produce a range of negative consequences. One major concern highlighted by Weber is that TIFs impact overlapping jurisdictions. Because property taxes are captured within the TIF district, services that are provided at the city and county level, such as education, may suffer. Further, TIFs may generate increased need for these services. If a redevelopment project, for example, increases overall population, then the TIF will have created additional demand for city and county services (Weber 621 -626). Like many authors, Weber has focused her critique on Chicago. Employing over 129 TIFs, covering nearly 30% of the city's land area, with $400 million in revenues Chicago has served as a TIF laboratory for both academics and policymakers (Neighborhood Capital Budget Group). The city, however, is politically, demographically, and economically distinct from most other places using TIP. As local governments in suburban and rural areas turn to the financing tool, the conditions of blight originally confronted in Chicago are no longer relevant. What remains pertinent, however, are the traditional TIF critiques, which have arguably become even more problematic. III. Suburban and rural "greenfield" TIF According to one report, "What was once a tool specifically created for urban redevelopment is now used to fund nearly every kind of development on all types of land" (Mayrl 2). In Wisconsin, this change has led to the majority of TIFs being located in rural and less populous counties, an imbalance taking place across the country (Mayr16). The proceeded case studies seek to outline the risks and potential rewards of these emerging "greenfield TIFs." Though isolated and in an economically depressed region, the first case is relevant to Orange County because it was the first TIF project in North Carolina, and the project's failure has impacted the perception of TIF in the state. The remaining two cases include suburban TIFs in major metropolitan areas. Roanoke Rapids, NC Rural or small -town TIFs have become popular because greenfield land in these areas is assessed for its "crop- growing potential." This artificially depressed value, unlike in urban areas, can appreciate rapidly (Mayrl 6). Despite the likelihood of appreciation, however, rural TIFs carry a relatively high degree of risk. Transaction costs may be high; infrastructure may be costly to develop; and unlike in urban neighborhoods, where a substantial demand for goods and services is usually present or located within range, rural zones may lack proven demand.