From the Lafayette Journal & Courier:
West Lafayette City Council members signed off on the creation of two new tax increment finance districts at Monday’s meeting.
“In the annexed area, there were two areas that were targeted for economic development consideration,” West Lafayette Mayor John Dennis said. “The annex area north of Lindberg Road up to (U.S.) 52, and the annexed area south of Lindberg ... down to the outer perimeter.
“We designated each of those independently as TIF districts,” he said.
The West Lafayette Redevelopment Commission approved the new districts at an earlier meeting, and now that the council signed off on the districts, the Redevelopment Commission will give its final approval at next month’s meeting, Dennis said.
After the TIF district is finalized, the area’s assessed value for local and county government is frozen and local governments’ general funds receive the same amount of tax revenue as before the districts.
As improvements or developments to the land increase the assessed value of the land, the additional tax revenue is allocated to the TIF districts’ account. The money in the TIF funds are then used to make infrastructure improvements to the area within the districts, which in turn, helps attract new business to the area.