Value in Tax Increment Financing

Doug Russell

Kalispell City Manager

Montana League of Cities and Towns

September 2017

RTIC question on Tax Increment Financing

!  RTIC

!  Is there a benefit in Tax Increment Financing?

!  Value in Developments

!  External Value Outside the Developments

!  Provides the Value of Vision for a community

Value in TIF?

Publicly used land with no tax revenue developed into commercial use. Established in 1996. Current Increment: $737,446 Inflationary increase only: $167,000

External Impacts- Importance of Development and Development Tools for Municipalities

State is Landowner (DNRC) Kidsports Lease 138 Acres(Market Value) 1997- $37,955 yr Permanent Easement 2013- $2,300,000 Section 36 Commercial Lease Revenue 2017- $670,204

Tools to Achieve the Vision

Next Steps

!  Attend RTIC and Local Government Revenue Committee Meetings

!  Tell our story

!  Each community is different

!  Be prepared to quantify and qualify the value of Tax Increment Financing