#AsktheCity: How market value and building sales can impact TIF
The recent sale of the Amazon Fulfillment Center building on Fourth Avenue has generated questions of how it impacts the Fourth Avenue and Shenandoah Tax Increment Financing District.
Fortunately for the city and county, in a positive way.
The sale of the building at nearly double its property value results in increased market value and leads to higher TIF revenues. These higher-than-anticipated revenues could allow the city to repay its interfund loan, used to fund reconstruction of Fourth Avenue, two years ahead of schedule. It could also lead to decertifying the district earlier than 2025.
Amazon leases the building and does not receive any money from the TIF district. All the funds generated by the district over the nine years are being used to fund the Fourth Avenue reconstruction and Scott County’s improvements to County Highway 83; both of which were much-needed infrastructure projects for our community.
It is possible the city or county could use additional revenue generated by this increased market value toward other eligible projects in the district or a percentage on qualified expenses outside the district, as permitted by law. However, the City Council has not discussed either of these options. For now, the higher market value and subsequent revenues are a win-win for the community.