TIF Discussion

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iamjacobm
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TIF Discussion

Post by iamjacobm »

Maybe Gov't isn't the best place for this not sure.

I am doing a project for a class and the property that I highlighted was one of the new row homes near Park Ave. Long story short as I am preparing the previous year's tax info I came to realize that since this was built with TIF that the land valuation of this home was a mere $2100 so last years tax levy was under $45. I am going to ask my teacher tonight if he knows about this, but does that mean Joe Homeowner that buys this place will get over a decade of that low property tax? I would assume so. It is just something that hadn't crossed my mind about transfer of ownership and TIF funding.

If that is indeed the case I am wondering why relator didn't market that as a perk. I mean a new homeowner will save thousands of dollars over the life of the TIF if they are paying under 50 bucks a year.
bigredmed
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Re: TIF Discussion

Post by bigredmed »

When you buy a place, it often gets reappraised at a higher level.
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Garrett
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Re: TIF Discussion

Post by Garrett »

The valuation will increase. TIF doesn't stop your property taxes from going up, it just makes your property tax increases go into the TIF funds.
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iamjacobm
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Re: TIF Discussion

Post by iamjacobm »

Yeah what confused me when I posted this was I checked to compare with another TIF condo project at jLofts and the first couple reports were all the same incredibly low valuation.
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Coyote
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Re: TIF Discussion

Post by Coyote »

I haven't thought this question through, but...
Given the speculation that First Data may be selling off one of their buildings (due to taxation rates?)...
Will this be the beginning of a TIF trend as some of these buildings come of age?
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skinzfan23
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Re: TIF Discussion

Post by skinzfan23 »

Report: Omaha approved $41 million in TIF loans to private developers in 2021
Omaha projects approved in 2021 for tax-increment financing are expected to produce more than 900 housing units and 700,000 square feet of commercial and industrial space.

The 25 projects required about $41 million in tax-increment financing loans, according to the annual TIF report approved by the Omaha City Council on Tuesday.

The largest TIF loan approved to date has been about $80 million for the Crossroads redevelopment, which won city approval last year but was not counted in this report. More than $60 million in tax-increment financing also will be used for the planned Mutual of Omaha tower in downtown Omaha.

Today, 254 different Omaha economic development ventures are benefiting from the incentive. Those projects have produced a 898% increase in valuation over their base value of $14.5 million, bringing an assessed value of $2.1 billion.

The largest TIF loan in 2021 went toward the development of midtown Omaha’s Blackstone Plaza. Owners of the 15-story office structure sought nearly $6 million in TIF to assist in the building’s renovation.
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Coyote
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Re: TIF Discussion

Post by Coyote »


Omaha's TIF approvals in first half of 2022 far exceed 2021 total


From a new downtown Omaha skyscraper to the construction of a $220 million casino, massive projects have put 2022 on track to be a record-breaking year for tax-increment financing loans in the city. Upward of $105 million in tax-increment financing, or TIF, has been approved in 2022, already exceeding the total in all of 2021. The $105 million was from eight redevelopment agreements approved by the Omaha City Council, a key step in the city’s TIF application process. The count does not include redevelopment plans approved by the City Council, a step taken before an agreement is considered.

Used in Omaha since 1980, TIF is a financing tool regularly sought in local development efforts. Proponents of the economic incentive champion it as a tool to encourage private investment in areas that need housing and revitalization. Critics contend that the incentive is used too generously and is too often granted for developments that don’t contribute to civic improvements or affordable housing needs. From 2015 to 2021, total TIF approvals averaged $42.3 million per year. Since 2000, the highest single-year total was in 2016. Thirty projects yielded nearly $70 million in TIF loans that year.
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