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Positive Impacts of TIF, Tax Increment Financing, In Holdrege, NE
April 20, 2018
DOES TIF ACTUALLY PRODUCE TANGIBLE BENEFITS TO THE COMMUNITY?
The short answer is YES!
Holdrege has approved 21 TIF projects since its inception in 1995; eight projects are complete and 13 projects remain active. By law, all 21 projects demonstrated a requirement for TIF assistance in order to move forward and NO existing tax revenues were diverted from schools or other taxing jurisdictions. As a result, Holdrege has added more than $20 million of new taxable valuation with many additional and immediate benefits rippling through the economy. Used responsibly, TIF is a powerful tool that helps make the pie bigger.
HOLDREGE TIF FACTS
SOURCE: Phelps County Assessor and Treasurer’s Office
| Base Valuation of Completed Projects (8 projects) | $596,805 | |
| New Taxable Value of Completed TIF Projects | $5,957,645 | 998% Increase |
| Base Annual Property Taxes Paid on Completed Projects | $11,500 | estimate |
| New Annual Property Taxes Paid on Completed Projects | $97,088 | 844% Increase |
| Base Valuation of Active Projects (13 projects) | $1,227,872 | |
| New Taxable Value of Active Projects | $16,848,441 | 1,372% Increase |
| New Tax Increment Created on Active Projects | $15,620,569 | |
| Total Current Valuation of Complete and Active TIF Projects | $22,806,086 |
HOLDREGE TIF IMPACTS
SOURCE: Goss & Associates Report: TIF Contributions to Economic Growth in Rural Nebraska
| Per Capita Residential TIF Excess (NEW) Value 2011 – 2016 | $416 | ($58 to $474) |
| Per Capita Commercial & Industrial TIF Excess (NEW) Value 2011 – 2016 | $1,068 | ($664 to $1,733) |
| Temporary Annual Emp. Supported by Commercial & Industrial TIF | 169 | (construction) |
| Permanent Annual Emp. Supported by Commercial & Industrial TIF | 189 | (operations) |
REGIONAL TIF IMPACTS
| Cargill Grain Handling Facility, Atlanta, NE – Base Valuation | $635,520 |
| New Taxable Value | $10,724,015 |
NEBRASKA TIF FACTS
SOURCE: Goss & Associates Report: TIF Contributions to Economic Growth in Rural Nebraska
- During phase 1, the construction period, TIF projects impact industries outside of construction ranging from Insurance Carriers to Banks to Hospitals, and more. The average sales increase per category is $73,070.
- During phase 2, the operational period, TIF projects generate sales and salary income beyond the TIF project as well as creating new jobs.
- Over 20-years, TIF impact from the average industrial/commercial project increases Real Property Taxes by 137%.
- Over 20-years, TIF produces a rate of return of 5.6% after accounting for growth in public costs for infrastructure, including schools and highways.
