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Growing Iowa City’s Economy . Tax Increment Financing as a tool for prosperity. Tax Increment Financing. Use of public investment as catalyst for development in planned areas to build commercial\industrial tax base to create new jobs to improve aesthetics Use of tax rebates reduces risk

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growing iowa city s economy

Growing Iowa City’s Economy

Tax Increment Financing as a tool for prosperity

tax increment financing
Tax Increment Financing
  • Use of public investment as
    • catalyst for development in planned areas
    • to build commercial\industrial tax base
    • to create new jobs
    • to improve aesthetics
  • Use of tax rebates reduces risk

(if the project does not perform, the TIF benefits are not passed on to the developer)

  • Projects are reviewed individually by City Council
slide3

TIF districts, projects in Iowa City

1999

  • Seabury & Smith
  • NGI
  • Plaza Towers
  • Hieronymus Square
  • Pepperwood Place
  • Plamor
  • Sycamore Mall
  • Alpla
  • United Natural Foods
  • Graham Packaging

2001

2003

2000

2002

2002

2002

2001

mutually beneficial
Mutually beneficial

Industrial

Graham Packaging, 5 years jobs, property value

Alpla of Iowa, Inc., 5 years + $35K grant jobs, property value

United Natural Foods, Inc., 6 years jobs, property value

Commercial

Seabury & Smith, 10 yrs declining rebate jobs, property value

Plaza Towers, construction loan up front property value, retail, hotel, aesthetics

Hieronymus Sq. 12-13 years rebate value, commercial, aesthetics, So.of Burlington

National Genecular Inst.high quality jobs, new industry

Retail Redevelopment

Sycamore Mall, 7 years revival of old retail, % leased space, value

Plamor, 7 years % leased space, aesthetics, value

Pepperwood Plaza, 7 years aesthetic improvement, property value

value of our tif projects
Value of our TIF projects
  • More than $68 million in new taxable value
  • 725+ Commercial/Industrial Jobs

(Seabury & Smith, Owens-Illinois\Graham Packaging, United Natural Foods Inc. and Alpla)

  • 790 Retail Jobs

(est. Sycamore Mall, Plamor and Pepperwood Plaza)

  • PLUS construction related jobs and consumer spending in our community
the seabury example
The Seabury Example

roi

=

+

Empty lot

Value $250,000

Prop Taxes pd. $9,556

Over 10 years $95,564

Over 20 years 191,129

TIF financed development

New Value $6,000,000

Prop Taxes pd. $229,354

Over 10 years $2,293,548

Over 20 years $4,587,080

All Taxes paid $229,354

@ $38.2258/$1000

Increment $5,750,000

Rebate on inc. $181,067

@ $31.49/$1000

Net taxes paid $48,287

Net taxes paid $48,287

5 x more than empty lot

In only 2 years, net taxes paid exceeds 10 years of empty lot tax revenue.

After rebates are over in 7 years, taxes paid will

annually exceed $250,000

+ JOBS

+ AESTHETICS

+ OTHER NEW PROJECTS

hieronymus square example

TIF

Completion

Project Completion

Hieronymus Square Example

Developer-paid property taxes over 30 years

Hieronymus Square Project

(with TIF assistance)

Typical Successful

3 floor apartment/condos

1 floor commercial

(without TIF assistance)

Hieronymus empty lot

Assumptions:

Assessed values increase 1% per year

Taxable values are calculated at today’s rates

value of increments captured by tif in johnson county
Value of Increments captured by TIF in Johnson County

millions

source: Johnson County Jan. 1, 2005 net taxable valuations for FY2006/2007 tax levies by levy authority

percent of community value captured in tif districts
Percent of Community Value captured in TIF districts

Percent of Value in TIFs

source: Johnson County Jan. 1, 2005 net taxable valuations for FY2006/2007 tax levies by levy authority

overall tif use in johnson county
Overall TIF use in Johnson County

source: Johnson County Jan. 1, 2005 net taxable valuations for FY2006/2007 tax levies by levy authority

another measure tif use per capita
Another measure…TIF Use Per Capita

source: Johnson County Jan. 1, 2005 net taxable valuations for FY2006/2007 tax levies by levy authority

slide12

Graham Packaging (Owens-Illinois)

2006 Assessed value: $ 5,510,030

Initial Value (01/01): $ 30,010

Total Growth: $ 5,480,020

Number of Jobs: 58

Payroll : $2,362,402

slide13

Alpla of Iowa, Inc.

2006 Assessed value: $ 6,760,750

Initial Value (01/03): $ 3,594,340

Total Growth: $ 3,166,410

Number of Jobs: 146

Payroll : $4,381,225

slide14

United Natural Foods, Inc.

2006 Assessed value: $ 12,947,600

Initial Value (01/03): $ 4,653,740

Total Growth: $ 8,293,860

Number of Jobs: 247

Payroll : $ 7,768,051 (est.)

slide15

Seabury and Smith

2006 Assessed value: $ 5,922,890

Initial Value (01/02): $ 264,520

Total Growth: $ 5,658,370

Number of Jobs: 219

Payroll : $8,707,550 (est.)

slide16

Plaza Towers

2006 Assessed value: $ 30,697,590

Initial Taxable Value (01/02): $ 0

Total Growth: $ 30,697,590

slide17

Sycamore Mall

2006 Assessed value: $ 14,610,400

Initial Value (01/00): $ 4,662,900

Total Growth: $ 9,823,443

Number of Jobs: 535 (FT: 210+, PT: 300+)

Payroll : $6,800,000+ (est.)

slide18

Plamor

2006 Assessed value: $ 2,008,020

Initial Value (01/03): $ 966,070

Total Growth: $ 1,041,950

Number of Jobs: 105 (FT: 28, PT: 77)

Payroll : $1,142,960 (est.)

slide19

Pepperwood Plaza

Current Assessed value: $ 11,773,880

Initial Value (01/04): $ 8,677,520

Total Growth: $ 2,996,388

Number of Jobs: (est.) 150 (FT: 43, PT: 107)

Payroll : $ 1,673,360 (est.)

for more information on tif in iowa city
For more information on TIF in Iowa City…

Wendy Ford

Economic Development Coordinator

City of Iowa City

Phone: 319-356-5248

Email: wendy-ford@iowa-city.org