latte City Administrator Keith Moody and Mayor Dave Brooks led an informal discussion of Tax Increment Financing (TIF) Monday at the monthly meeting of the Platte City Area Development Association.
Platte City has been looking into getting involved as a TIF community for some time. One of the first steps involved in becoming a TIF community is the establishment of a TIF commission.
Brooks will be looking for individuals for this commission. The commission would be made up of two individuals from the school district, one individual is selected from the other affected tax districts, the county selects two individuals and six members are recommended by the mayor and approved by the board of aldermen.
Brooks said that two commercial groups have been interested in TIF development in the area and have approached city officials.
A TIF area can increase the assessed valuation of a piece of property and generate increased property tax revenues. Those increased tax revenues are then used to repay the investment the developer made.
According to Moody, areas eligible for TIF are blighted areas, conservation areas or economic development areas. Also, according to Moody, TIF is best used for retail development or for-sale residential development. The city is most interested in commercial development.
As a TIF community, Platte City could focus on a potentially blighted area around I-29 and HH Hwy.
Platte City may also consider using TIF to extend water and sewer lines to an area east of I-29. TIF would be appropriate, city officials believe, in the area east of I-29 because of the extensive infrastructure improvements required there. To expect one property owner to undertake those projects in order to bring their property up to a developed state would be unreasonable, in the eyes of supporters of the TIF plan.
The city has established a master plan for the extension of sewer to that area, and TIF money could help this construction.
TIF has helped finance development and projects in cities such as Cameron, Excelsior Springs, Kearney, Kansas City, Blue Springs and Liberty, among others.