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Management Review & Analysis – Tax Increment Financing Districts City of New Brighton Page 9 July 2017 TIF as a Development Tool The City of New Brighton has utilized TIF for key economic development, redevelopment and housing projects in the City. Utilizing this tool to accomplish the various goals of the City has strengthened the overall diversity of housing options, land uses and tax base, while increasing employment opportunities and cleaning up contaminated sites. One immediate benchmark of the benefit in utilizing TIF is the overall increase in market value from when the district was created to when it is fully developed and aging. As illustrated in the following table, the City’s overall market value has increased in the various TIF districts by over 500%: DistrictBase YearOriginal Market ValueInflated Original Market ValuePayable 2017 Market ValuePercent Increase in ValueTIF 18 Remmelle, CBD West 1993 2,695,700 4,565,583 21,299,900 366.53%TIF 20 Lakeview Business Park North 1994 496,500 819,905 14,356,200 1650.96%TIF 23 Thorndale Plaza 1995 73,600 118,191 1,984,900 1579.40%TIF 25 Lakeview South 1997 1,477,500 2,252,916 13,005,300 477.27%TIF 26 Brighton Corporate Business Park III 1999 4,153,000 6,100,697 46,106,000 655.75%TIF 27 Ken's Market 1999 190,000 279,107 1,296,800 364.63%TIF 29 BCPII South (Soo Line) 2000 195,000 277,137 1,697,000 512.33%TIF 30 Brighton Village - Beisswenger 2004 2,683,000 3,476,012 13,963,900 301.72%TIF 31 Northwest Quadrant (West Side) 2006 2,404,000 2,918,344 52,297,100 1692.01%TIF 32 Northwest Quadrant (East Side) 2007 1,509,800 1,782,070 24,040,700 1249.03%TIF 33 Marv's Transmission Site Office Condo Development 2007 141,700 167,253 772,200 361.70%TOTAL16,019,800 22,757,215 190,820,000 738.50%Inflation calculator used: www.usinflationcalculator.com Even though there are many benefits to utilizing TIF as a development tools, cities may wonder if they are utilizing the tool too much or not enough. One good way to measure a city’s use of TIF is to compare the use of TIF with similar cities. A common measure of the use of TIF is the percentage of the gross tax base captured in TIF districts. The chart on the following page demonstrates the City’s current and projected tax base which is captured in TIF districts with similar cities.
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