1 / 20

Growing Iowa City’s Economy

Growing Iowa City’s Economy . Tax Increment Financing as a tool for prosperity. Tax Increment Financing. Use of public investment as catalyst for development in planned areas to build commercialindustrial tax base to create new jobs to improve aesthetics Use of tax rebates reduces risk

isra
Télécharger la présentation

Growing Iowa City’s Economy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Growing Iowa City’s Economy Tax Increment Financing as a tool for prosperity

  2. Tax Increment Financing • Use of public investment as • catalyst for development in planned areas • to build commercial\industrial tax base • to create new jobs • to improve aesthetics • Use of tax rebates reduces risk (if the project does not perform, the TIF benefits are not passed on to the developer) • Projects are reviewed individually by City Council

  3. TIF districts, projects in Iowa City 1999 • Seabury & Smith • NGI • Plaza Towers • Hieronymus Square • Pepperwood Place • Plamor • Sycamore Mall • Alpla • United Natural Foods • Graham Packaging 2001 2003 2000 2002 2002 2002 2001

  4. Mutually beneficial Industrial Graham Packaging, 5 years jobs, property value Alpla of Iowa, Inc., 5 years + $35K grant jobs, property value United Natural Foods, Inc., 6 years jobs, property value Commercial Seabury & Smith, 10 yrs declining rebate jobs, property value Plaza Towers, construction loan up front property value, retail, hotel, aesthetics Hieronymus Sq. 12-13 years rebate value, commercial, aesthetics, So.of Burlington National Genecular Inst.high quality jobs, new industry Retail Redevelopment Sycamore Mall, 7 years revival of old retail, % leased space, value Plamor, 7 years % leased space, aesthetics, value Pepperwood Plaza, 7 years aesthetic improvement, property value

  5. Value of our TIF projects • More than $68 million in new taxable value • 725+ Commercial/Industrial Jobs (Seabury & Smith, Owens-Illinois\Graham Packaging, United Natural Foods Inc. and Alpla) • 790 Retail Jobs (est. Sycamore Mall, Plamor and Pepperwood Plaza) • PLUS construction related jobs and consumer spending in our community

  6. The Seabury Example roi = + Empty lot Value $250,000 Prop Taxes pd. $9,556 Over 10 years $95,564 Over 20 years 191,129 TIF financed development New Value $6,000,000 Prop Taxes pd. $229,354 Over 10 years $2,293,548 Over 20 years $4,587,080 All Taxes paid $229,354 @ $38.2258/$1000 Increment $5,750,000 Rebate on inc. $181,067 @ $31.49/$1000 Net taxes paid $48,287 Net taxes paid $48,287 5 x more than empty lot In only 2 years, net taxes paid exceeds 10 years of empty lot tax revenue. After rebates are over in 7 years, taxes paid will annually exceed $250,000 + JOBS + AESTHETICS + OTHER NEW PROJECTS

  7. TIF Completion Project Completion Hieronymus Square Example Developer-paid property taxes over 30 years Hieronymus Square Project (with TIF assistance) Typical Successful 3 floor apartment/condos 1 floor commercial (without TIF assistance) Hieronymus empty lot Assumptions: Assessed values increase 1% per year Taxable values are calculated at today’s rates

  8. Value of Increments captured by TIF in Johnson County millions source: Johnson County Jan. 1, 2005 net taxable valuations for FY2006/2007 tax levies by levy authority

  9. Percent of Community Value captured in TIF districts Percent of Value in TIFs source: Johnson County Jan. 1, 2005 net taxable valuations for FY2006/2007 tax levies by levy authority

  10. Overall TIF use in Johnson County source: Johnson County Jan. 1, 2005 net taxable valuations for FY2006/2007 tax levies by levy authority

  11. Another measure…TIF Use Per Capita source: Johnson County Jan. 1, 2005 net taxable valuations for FY2006/2007 tax levies by levy authority

  12. Graham Packaging (Owens-Illinois) 2006 Assessed value: $ 5,510,030 Initial Value (01/01): $ 30,010 Total Growth: $ 5,480,020 Number of Jobs: 58 Payroll : $2,362,402

  13. Alpla of Iowa, Inc. 2006 Assessed value: $ 6,760,750 Initial Value (01/03): $ 3,594,340 Total Growth: $ 3,166,410 Number of Jobs: 146 Payroll : $4,381,225

  14. United Natural Foods, Inc. 2006 Assessed value: $ 12,947,600 Initial Value (01/03): $ 4,653,740 Total Growth: $ 8,293,860 Number of Jobs: 247 Payroll : $ 7,768,051 (est.)

  15. Seabury and Smith 2006 Assessed value: $ 5,922,890 Initial Value (01/02): $ 264,520 Total Growth: $ 5,658,370 Number of Jobs: 219 Payroll : $8,707,550 (est.)

  16. Plaza Towers 2006 Assessed value: $ 30,697,590 Initial Taxable Value (01/02): $ 0 Total Growth: $ 30,697,590

  17. Sycamore Mall 2006 Assessed value: $ 14,610,400 Initial Value (01/00): $ 4,662,900 Total Growth: $ 9,823,443 Number of Jobs: 535 (FT: 210+, PT: 300+) Payroll : $6,800,000+ (est.)

  18. Plamor 2006 Assessed value: $ 2,008,020 Initial Value (01/03): $ 966,070 Total Growth: $ 1,041,950 Number of Jobs: 105 (FT: 28, PT: 77) Payroll : $1,142,960 (est.)

  19. Pepperwood Plaza Current Assessed value: $ 11,773,880 Initial Value (01/04): $ 8,677,520 Total Growth: $ 2,996,388 Number of Jobs: (est.) 150 (FT: 43, PT: 107) Payroll : $ 1,673,360 (est.)

  20. For more information on TIF in Iowa City… Wendy Ford Economic Development Coordinator City of Iowa City Phone: 319-356-5248 Email: wendy-ford@iowa-city.org

More Related