Apalach revives tax increment financing

This map illustrates the boundaries of the Community Redevelopment Area to be served by the new tax

This map illustrates the boundaries of the Community Redevelopment Area to be served by the new tax increment financing.

Published: Wednesday, January 15, 2014 at 13:37 PM.

By a unanimous vote Tuesday night, Apalachicola city commissioners revived a tax increment financing plan that will earmark growth in the downtown area’s tax base to subsidize improvements to the area.

In addition, the commissioners expanded the membership of the board governing the Community Redevelopment Area (CRA) to be served by the new tax plan.

Speaking on behalf of the CRA board, Jim Bachrach asked commissioners to revive the tax increment financing plan (TIF) that they first passed in 2010, but which had mistakenly not be implemented.

What a TIF does is set a baseline of taxes for a given area, for a given year, and then earmarks any subsequent growth in that area’s tax base to redevelopment of that area.

In 2010, the city commission passed a resolution to create a TIF for the CRA, which comprises the downtown area up to the historic district, and as far as 10th Street, and extending along the Avenue E corridor to the edge of town.

“The CRA is well-defined,” said Bachrach. “It (TIF) allows us to generate potential funding down the road.”



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