The word TIF is being uttered around Marion a lot these days. TIF is not “tiff,” a petty quarrel, although there are tiffs over the proposed TIF. Nor does Marion’s TIF mean “tagged image file format” which is a kind of picture on your computer. This TIF is shorthand for Tax Increment Financing—a way for communities to focus new real estate taxes on specific public infrastructure improvements, in order to encourage certain kinds of development.
The TIF process is used by communities across the country to create incentives for industrial, retail and mixed-use development. It is a process delineated in chapter 5709 of the Ohio Revised Code. In its essentials, tax increment financing is the process of redirecting the incremental new real property taxes generated when a structure or other improvement is added to a piece of property. The new taxes are directed into a TIF fund for a set period of time and are used to finance roads, sewers and other infrastructure that benefit the particular TIF zone.
TIFs can be a way for hard-strapped counties or cities to make the improvements that will encourage new growth.
The particular TIF under discussion these days is one on the east side of Marion, where new retail, restaurant, and mixed use development is proposed north of SR 95 near US 23. There are those who suggest the county should not redirect new tax dollars to encourage this development, because, it is argued, retail will come on its own and new retail will only replace existing retailers in the community, creating few, if any, net new jobs. Those who oppose the TIF say it is a public subsidy of a developer’s profits—that the developer should be the one responsible for the major roads and sewers into and out of his project.
On the other hand, those who favor the TIF argue that, as a community, we need to encourage new development, including the retail development anticipated in the Legacy Crossing project. Marion is a marginal market for retailers like Kohl’s, Target, Best Buy and others. Our per capita income isn’t as high as Delaware’s or Findlay’s and that to encourage the kind of retail growth we’d like to see, we, as a community, need to participate in the process by using the new real estate taxes to build the major pieces of infrastructure that will open up the ground on which the development will take place.
For the record, I’ve talked with most of the players on both sides of the issue—and, personally, fall into the latter camp. I believe for Marion to move beyond the status quo, we need to use the tools at our disposal—and TIF is one of those. If, for example, Kohl’s locates a store here, those Marion dollars that are now being spent at the Kohl’s in Delaware or Richland counties can stay here. They will generate sales taxes here that will benefit Marion County. I believe a community needs to look successful in order to be successful.
Having newer, quality retailers, more and better restaurants, and newer professional offices gives us the look and feel of a community that has the amenities people want and is growing, not declining. That, coupled with the attractive schools and industrial parks we’ve developed over the last several years creates a package that is more appealing to the industrial employers who will bring the new economy, higher paying jobs we all say we want. Sometimes you just have to look the part. There are those who say we should have more guarantees that there will be adequate revenue from the TIF to pay for the infrastructure projects. It is my understanding that the day the TIF agreement is signed, so will be land deals for enough projects to generate the required revenue.
Our commissioners are the elected officials charged with making policy decisions for the county. Their decision on whether or not to TIF the infrastructure on the east side of town comes after months of discussion and negotiation. Their decision will definitely affect our future as a community. May they deliberate carefully, hear all sides, then choose wisely, as we elected them to do.
