Seagate: An example of TIF
Tax Increment Financing (TIF) is one of many redevelopment tools available to help move projects forward and make viable projects that would not be absent the assistance. This can bring added value to a community through increased employment, greater amenities and more recreation, dining and shopping opportunities. In general, the use of redevelopment tools is a public/private partnership.
The city is currently discussing such a partnership with Canterbury Park, one of the largest underutilized sites in the city. The site also is a major barrier to access in our community since public roads currently dead-end into the property.
Since Canterbury opened in the 1980s, the only real development we have had at the site was assisted by a TIF partnership. This was the Seagate facility, which, built in 1999, created 800-plus jobs.
In Seagate’s case, an economic development TIF was used for site clearing and preparation and street construction. Today, Seagate pays more than $821,000 in taxes, including $172,230 to the school district. That is almost a $1 million increase in tax dollars that would not have occurred absent the TIF. Not much has happened at Canterbury since Seagate.
The current Canterbury proposal would use TIF funds to construct public infrastructure, including roads, utilities and storm drainage. Funds will not be going to Canterbury directly but will reimburse infrastructure costs. It is important to remember that all the financial risk for the project is on Canterbury; if the project is not successful, Canterbury will not receive reimbursement.
If you have more questions about this project, please feel free to reach out to us via phone, email or through our #AsktheCity form.