In a recent opinion piece published on the Daily Memphian, the author highlights how the landscape of tax increment financing (TIF) in Shelby County, Tennessee has been forever changed. The author discusses how TIFs, which have been traditionally used to spur economic development by earmarking a portion of future tax revenue for infrastructure improvements, have now evolved to the point where they are seen as a potential loophole for developers to secure public funding without meeting the intended goals of job creation and economic growth.
The author points to a recent decision by the Shelby County Commission to deny a TIF request for a proposed development in Germantown as a turning point in the community’s perception of TIFs. The decision was made in light of concerns that the developer had not provided enough evidence that the project would deliver the promised benefits to the community. This denial sets a precedent for future TIF requests, signaling that developers will now be held to a higher standard when seeking public funding for their projects.
The author goes on to discuss the importance of transparency and accountability in the TIF approval process, emphasizing the need for developers to clearly demonstrate how their projects will benefit the community in order to secure public funding. They also note that the changing attitudes towards TIFs in Shelby County reflect a larger trend of skepticism towards public financing for private projects, as taxpayers become more aware of how their money is being used.
Overall, the article suggests that the days of easy access to TIF funding in Shelby County are over, and developers will now need to work harder to justify why they should receive public support for their projects. This shift in attitude towards TIFs signals a new era of accountability and scrutiny in economic development efforts in the county.
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