Positive Impacts of TIF, Tax Increment Financing, In Holdrege, NE

Friday, 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.

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