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Management Review & Analysis – Tax Increment Financing Districts City of New Brighton Page 9 April 2018 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 800%: DistrictBase YearOriginal Market ValueInflated Original Market ValuePayable 2018 Market ValuePercent Increase in ValueTIF 18 Remmelle, CBD West 1993 2,695,700 4,645,018 22,941,800 393.90%TIF 20 Lakeview Business Park North 1994 496,500 834,170 16,454,500 1872.56%TIF 23 Thorndale Plaza 1995 73,600 120,248 2,191,200 1722.23%TIF 25 Lakeview South 1997 1,477,500 2,292,113 15,506,900 576.53%TIF 26 Brighton Corporate Business Park III 1999 4,153,000 6,206,840 49,358,400 695.23%TIF 27 Ken's Market 1999 190,000 283,963 1,500,000 428.24%TIF 29 BCPII South (Soo Line) 2000 195,000 281,958 1,899,800 573.79%TIF 30 Brighton Village - Beisswenger 2004 2,683,000 3,536,489 16,029,400 353.26%TIF 31 Northwest Quadrant (West Side) 2006 2,404,000 2,969,119 71,645,100 2313.01%TIF 32 Northwest Quadrant (East Side) 2007 1,509,800 1,813,075 28,239,600 1457.55%TIF 33 Marv's Transmission Site Office Condo Development 2007 141,700 170,163 861,000 405.99%TOTAL16,019,800 23,153,156 226,627,700 878.82%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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