Waterfront development plans and the accompanying infrastructure could benefit if two properties are added to a tax increment financing district.On March 5, the City Council is expected to vote on adding the future WEX headquarters at Thames and Hancock streets, and three properties on Union Wharf, 230 Commercial St., to the Waterfront TIF district. The order had a first reading at the Feb. 21 council meeting.
“The added TIF districts would produce an estimated $495,000 annually, over and above the current estimated annual TIF proceeds at $540,000,” according to a Feb. 7 memo by City Economic Development Director Greg Mitchell.Mitchell said Feb. 21 the additions to the TIF zone, created in 2002, do not include credit enhancement agreements that would return any tax revenues to developers.
TIFs allow a municipality to set aside increases in tax revenues for specific uses. Funds captured in the TIF can be used for projects that include pier and wharf improvements, street work and dredging.
Source: The Forecaster