Urban renewal uses Tax Increment Funding to supply funds for the projects.
Increment: When property values increase over time from new development and appreciation, it goes to the urban renewal area instead of overlapping taxing districts.
Frozen Base: The value of the property when the urban renewal area is formed. Taxes from the frozen base continue to go to the overlapping taxing districts.
The chart below shows how, as property values increase, projects are funded by the increment. The projects also increase property values. The dates in the description may vary depending on the progress of the urban renewal. To print out the information on this page, open the How Urban Renewal Works PDF document.
Early Years (2016-2023)
Increment revenues are small. The urban renewal area incurs loans to fund strategic improvements to stimulate new development.
Middle Years (2024 - 2033)
Development occurs, boosting incremental revenue. Urban renewal has more capacity to fund important projects.
Later Years (2034 - 2043)
Annual increments revenues are large. Final projects are completed, outstanding debt is repaid, and the urban renewal area closes down.
Once all the projects have been completed and the debt is repaid, all of the tax revenue returns to overlapping taxing districts and they receive the benefits of increased property values.