The Town Council approved a tax increment financing district at Tuesday’s meeting.
The Winfield Plan Commission recommended establishing the economic development area which will include commercial and business properties along East 109th Avenue and Randolph Street within the municipal limits. The area was selected after an extensive study by the Winfield Redevelopment Commission.
The next step is a public hearing by the Redevelopment Commission.
Town Attorney David Austgen explained that TIF districts are set up to capture portions of property taxes paid by businesses within the district. The amount is based on the initial or base assessed value of the property when the district is established and any increase in assessed value afterward.
The state returns a portion of the business property taxes collected in that district to the redevelopment commission. That money can then be used to develop and redevelop infrastructure in the district.
It can also be used as an incentive to attract businesses to the town, Austgen said. Those incentives are tied with capital financing.
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