Tax Increment Financing and Economic Development, Second Edition

Description

This book brings together leading experts to examine the evolving nature of tax increment financing (TIF), the most widely used tool of local economic and community development. Originally designed as an innovative approach to the redevelopment of blighted areas, it has become a more general-purpose tool of economic and community development. Contributors offer case studies of the uses, structures, and impacts of TIF projects alongside more general discussions on the theoretical, financial, and legal bases for the use of TIF. They also explore its effect on overlapping jurisdictions such as cities, counties, and school districts. Some of the case studies capture TIF at its best—redeveloping areas that would likely never develop without substantial incentives. Other cases highlight questionable uses, especially where it has been used in new ways that those who developed the tool never envisioned.

Originally published in 2001, the book was called "…a major contribution to the debate on the efficacy of such economic development financing tools as TIF…" by the journal Public Budgeting & Finance. Clear, comprehensive, and timely, this new edition features the latest research and thinking on TIF, including the political, legal, and even ethical issues surrounding its use.
List of Figures and Tables
Acknowledgments

Part I. Background

1. Introduction
Craig L. Johnson and Kenneth A. Kriz

2. A Primer on Tax Increment Financing
Craig L. Johnson and Kenneth A. Kriz

3. A Review of State Tax Increment Financing Laws
Kenneth A. Kriz and Craig L. Johnson

4. The Use of Debt in Tax Increment Financing
Martin J. Luby, Tima T. Moldogaziev, Craig L. Johnson, and Ruth Winecoff

Part II. Implementation, Uses, and Structure

5. The Port Covington TIF: Did Baltimore “Protect This House”?
Roy T. Meyers

6. TIF for Major Project Development: The Case of the Stapleton Airport Redevelopment
Christine R. Martell

7. An Incentive Program Grows Up: The Evolution of TIF in Chicago
Andrea Craft and Rachel Weber

8. TIF in California: Birth, Growth, Death, and Resurrection
Catherine Horiuchi and Jeffrey I. Chapman

9. The (D)Evolution of TIF Use: Redevelopment to Land Development in Nebraska
Craig S. Maher, Sungho Park and Ji Hyung Park

10. Using TIF for Brownfields Redevelopment
E. Evans Paull

11. State Super TIF Programs: New Tools for Transformative Urban Redevelopment
E. Evans Paull

Part III. Economic, Social, and Fiscal Impact

12. The Theory and Economic Impact of Tax Increment Financing
Kenneth A. Kriz

13. Tax Increment Financing and Spatial Spillovers
Anita Yadavalli and Michael Delgado

14. The Conceptual Pliability of TIF and the Political Rhetoric of Environmental Remediation: Groundwater Pollution and Tax “Decrement” Financing in Wichita
Chase M. Billingham and Sean Sandefur

15. TIF and Education Funding: Issues and Impact
Phuong Nguyen-Hoang

16. TIF Legislation in Indiana: Agile and Adaptive
Perry Burnett, Mohammed Khayum, Sudesh Mujumdar, and Daniel Friesner

17. Conlusion
Craig L. Johnson and Kenneth A. Kriz

Contributors
Author Index
Subject Index

Sujets

• USA
• United States of America
• Region
• Political economy
• Regional
• Central
• États-Unis
• National

Informations

• Publié par: State University of New York Press
• Date de parution: 10 juillet 2019
• Nombre de lectures: 0
• EAN13: 9781438474991
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

TAX INCREMENT FINANCING AND ECONOMIC DEVELOPMENT
Second Edition
TAX INCREMENT FINANCING AND ECONOMIC DEVELOPMENT
Second Edition
USES, STRUCTURES, AND IMPACT
EDITED BY
CRAIG L. JOHNSON AND KENNETH A. KRIZ
Published by State University of New York Press, Albany
© 2019 State University of New York
All rights reserved
Printed in the United States of America
No part of this book may be used or reproduced in any manner whatsoever without written permission. No part of this book may be stored in a retrieval system or transmitted in any form or by any means including electronic, electrostatic, magnetic tape, mechanical, photocopying, recording, or otherwise without the prior permission in writing of the publisher.
For information, contact State University of New York Press, Albany, NY
www.sunypress.edu
Library of Congress Cataloging-in-Publication Data
Names: Johnson, Craig L. (Craig Lawrence) editor. | Kriz, Kenneth A., editor.
Title: Tax increment financing and economic development / Uses, Structures, and Impact / Craig L. Johnson and Kenneth A. Kriz, editors.
Description: Second edition. | Albany : State University of New York Press, [2019] | Revised edition of Tax increment financing and economic development, c2001. | Includes bibliographical references and index.
Identifiers: LCCN 2018035977 | ISBN 9781438474977 (hardcover : alk. paper) | ISBN 9781438474984 (pbk. : alk. paper) | ISBN 9781438474991 (ebook)
Subjects: LCSH: Tax increment financing—United States. | Urban renewal—United States—Finance.
Classification: LCC HT175 .T38 2019 | DDC 336.22/0973—dc23
LC record available at https://lccn.loc.gov/2018035977
10 9 8 7 6 5 4 3 2 1
Contents
List of Figures and Tables
Acknowledgments
Part I. Background
Chapter 1
Introduction
Craig L. Johnson and Kenneth A. Kriz
Chapter 2
A Primer on Tax Increment Financing
Craig L. Johnson and Kenneth A. Kriz
Chapter 3
A Review of State Tax Increment Financing Laws
Kenneth A. Kriz and Craig L. Johnson
Chapter 4
The Use of Debt in Tax Increment Financing
Martin J. Luby, Tima T. Moldogaziev, Craig L. Johnson, and Ruth Winecoff
Part II. Implementation, Uses, and Structure
Chapter 5
The Port Covington TIF: Did Baltimore “Protect This House”?
Roy T. Meyers
Chapter 6
TIF for Major Project Development: The Case of the Stapleton Airport Redevelopment
Christine R. Martell
Chapter 7
An Incentive Program Grows Up: The Evolution of TIF in Chicago
Andrea Craft and Rachel Weber
Chapter 8
TIF in California: Birth, Growth, Death, and Resurrection
Catherine Horiuchi and Jeffrey I. Chapman
Chapter 9
The (D)Evolution of TIF Use: Redevelopment to Land Development in Nebraska
Craig S. Maher, Sungho Park and Ji Hyung Park
Chapter 10
Using TIF for Brownfields Redevelopment
E. Evans Paull
Chapter 11
State Super TIF Programs: New Tools for Transformative Urban Redevelopment
E. Evans Paull
Part III. Economic, Social, and Fiscal Impact
Chapter 12
The Theory and Economic Impact of Tax Increment Financing
Kenneth A. Kriz
Chapter 13
Tax Increment Financing and Spatial Spillovers
Anita Yadavalli and Michael Delgado
Chapter 14
The Conceptual Pliability of TIF and the Political Rhetoric of Environmental Remediation: Groundwater Pollution and Tax “Decrement” Financing in Wichita
Chase M. Billingham and Sean Sandefur
Chapter 15
TIF and Education Funding: Issues and Impact
Phuong Nguyen-Hoang
Chapter 16
TIF Legislation in Indiana: Agile and Adaptive
Perry Burnett, Mohammed Khayum, Sudesh Mujumdar, and Daniel Friesner
Chapter 17
Conclusion
Craig L. Johnson and Kenneth A. Kriz
Contributors
Author Index
Subject Index
Figures and Tables
Chapter 2 Figure 2.1 The TIF Increment: Property Assessed Value (AV) and Tax Revenue Table 2.1 The Creation of Tax Increment Revenue Figure 2.2 The Stages of TIF
Chapter 3 Table 3.1 TIF Enabling Statute Provisions for the Project Initiation, Plan Formulation, and Plan Adoption Stages Table 3.2 TIF Enabling Statute Provisions for the Plan Implementation, Evaluation, and Termination Stages
Chapter 4 Figure 4.1 TIF Issuance: California vs. All Other States, 2000–2016 Figure 4.2 Top Five TIF Issuing States, Excluding California, 2000–2008 Figure 4.3 Top Five TIF Issuing States, Excluding California, 2009–2016 Figure 4.4 TIF Issuance: Refunding vs. Non-Refunding, 2000–2016 Figure 4.5 TIFs Without FA Figure 4.6 Insured TIFs Figure 4.7 Taxable TIFs Figure 4.8 Average TIF Bond Issue Size Figure 4.9 Average TIF Bond Final Maturity Figure 4.10 Average TIF Years to Call
Chapter 5 Figure 5.1 Port Covington Developer’s Illustration of the Project at Buildout
Chapter 6 Figure 6.1 Actors, Financing Arrangement, and Functional Responsibilities Table 6.1 Bonds, COPs, and Loans Subject to Payment by Stapleton TIF Revenues
Chapter 7 Figure 7.1 Total Expenditures in TIF Districts, 2005–2014 Figure 7.2 Number of Active TIF Districts, 1984–2015 Figure 7.3 Total Annual TIF Revenue, 1986–2015 Table 7.1 Development Type Categories and Definitions Figure 7.4 Amount of TIF Assistance by Development Type, 1986–2014 Figure 7.5 Relative Private, Public, and Nonprofit Shares of Total TIF Assistance, 1986–2014 Figure 7.6 IGAs as Share of Total Project Agreements, 1986–2014
Chapter 8 Table 8.1 Tax Increment Allocation Table 8.2 TIF Growth by Year Table 8.3 Size Distribution by Project, FY84–85—FY 10–11
Chapter 9 Figure 9.1 Basic information on Fremont City (as of 2015) Table 9.1 Timeline of the Project No. 1 Table 9.2 Map of the Blighted Area Declared Table 9.3 Cost-benefit Analysis: Kansas City, MO Example Figure 9.2 Map of the Blight Area Declared Table 9.4 Annual Changes in Property Values Table 9.5 Cost-benefit Analysis of Initial Plan for Project No. 1
Chapter 10 Table 10.1 General Characteristics of Brownfield Sites: The Massachusetts Brownfields Tax Credit Program Table 10.2 Re-use of Assisted Brownfields Sites in Wisconsin Table 10.3 Public Financing Sources for Wisconsin Brownfield Projects
Chapter 12 Figure 12.1 Contour Map of Expected Effects on Property Values Surrounding a TIF Parcel
Chapter 13 Table 13.1 Descriptive Statistics Figure 13.1 Average Annual Trends in Logged Gross Assessed Values Table 13.2 A-Spatial and Spatial Difference-in-Difference Estimates
Chapter 14 Figure 14.1 Annual Projected Revenue for Gilbert-Mosley Fund from TIF and PRP Contributions in Adopted City Budget, 1992–2017 Figure 14.2 Annual Actual Revenue for Gilbert-Mosley Fund from TIF and PRP Contributions, 1992–2016 Figure 14.3 Annual End-of-Year Unencumbered Fund Balance for Gilbert-Mosley Fund, 1992–2016
Chapter 15 Figure 15.1 Potential Benefits for School Districts with No-Increment TIF districts Figure 15.2 Effects of TIF under Three Counterfactual Patterns Table 15.1 Definitions of Abbreviated Variables Table 15.2 Calculation Examples of Base Value and Increments in Year t During the TIF Duration when Assessed Value is Greater than FBV (millions $)
Chapter 16 Figure 16.1 Indiana TIF Districts Established by Year Table 16.1 County Averages for TIF Intensities Table 16.2 Sections of the Redevelopment Commission Statute with the Most Legislative Changes between 1981 and 2015 Table 16.3 Major Legislative Changes in Response to Citizens’ Concerns Table 16.4 Response to Concerns via Legislative Action
Acknowledgments
T his book would not have been possible without the generous support of the O’Neill School of Public and Environmental Affairs, Indiana University. We also would like to acknowledge excellent research support from doctoral candidate Ruth Winecoff and MPA candidate Samantha Ainsworth.
We would like to thank the Indiana Economic Development Association for permission to reprint sections of “Analysis of Tax Increment Financing in Indiana” (2016), by Dr. Perry Burnett, Dr. Mohammad Khayum, Dr. Sudesh Mujumdar, and Dr. Daniel Friesner, in chapter 16, “ TIF Legislation in Indiana: Agile and Adaptive ,” this volume.
P ART I
B ACKGROUND
1
Introduction
C RAIG L. J OHNSON AND K ENNETH A. K RIZ
Introduction
S ince the first edition of Tax Increment Financing and Economic Development: Uses, Structures, and Impact was published in 2001, tax increment financing (TIF) in the United States has grown, matured, evolved. TIF is now one of the most widely used and recognized state and local government economic development and redevelopment techniques in the United States of America. This volume, the second edition of Tax Increment Financing and Economic Development: Uses, Structures, and Impact (2019) underscores the enduring and evolving nature of TIF.
TIF has changed in many ways in eighteen years, but the essence of the TIF policy imperative has remained the same—finance local government economic (re)development, with local resources, and under local political control. In this volume, we describe how TIF is currently understood and practiced across the nation. We also analyze the changes to TIF, which have been substantial. In some states the changes have been incremental, in others they have been of earthquake proportion. We document the full gambit of these changes and describe how TIF operates now, which is often very different than in 2001. The TIF model has evolved by many means, perhaps most importantly by the collaboration of stakeholders in the arena—government officials, private developers, researchers, community development org