Economic Development Authority
Tax increment financing uses the increase in property taxes generated by new development to finance qualified public improvement costs related to that development. The difference between the current property tax on a parcel of land and the estimated property tax after development is the “tax increment.” Permitted uses of the tax increment vary according to the type of tax increment financing.
Three Types of TIF Districts
What types of TIP districts may be created?
| District Type | Use of Increment | Maximum Duration |
|---|---|---|
| Redevelopent | Redevelop blighted areas | 25 years |
| Renewal and renovation | Redevelop areas with obsolete uses, not meeting the blight text | 15 years |
| Ecomonic Development | Encourage manufacturing and other footloose industries | 8 years |
| Housing | Assist low- and moderate-income housing | 25 years |
| Soils | Clean up contaminate sites | 20 years |
| Compact Deveopment | Redevelop commercial areas with more dense developments | 25 years |
For economic development purposes, the City of Windom will consider using tax increment financing to write down the cost of land, utilities, roads, site preparation, rail access and other eligible economic development uses. To be eligible for TIF, a project should:
It is not necessary for a single project to achieve all of these goals. The degree to which it meets these goals influences the level of subsidy it can expect to attract.
BUSINESS HOURS
Monday-Friday: 8am to 5pm
Saturday-Sunday: Closed
Phone: 507-831-6129
Toll-Free: 1-800-494-6366
Fax: 507-831-6127
Windom City Hall
444 9th Street, P.O. Box 38
Windom, MN 56101-0038
