Minneapolis–St. Paul

Tax Increment Financing (TIF) is being leveraged across the metro

Chart of the week: November 2, 2015

• Tax increment financing (TIF) is a commonly-used tool for financing economic development by encouraging investment on a site that would otherwise not be developed. TIF captures increases in taxable assessed value in a designated district that is then used to finance redevelopment.

• One of the largest applications of TIF in 2015 is Amazon's $220 million distribution center in Shakopee. Its usage has also been proposed for the future $60 million St. Paul Macy’s redevelopment.

• The largest TIF user in this chart, the City of New Brighton, has seen the overall market value in its various TIF districts increase by over 450 percent.

Sources: City of St. Louis Park, City of New Brighton, JLL Research

1.4% 1.7% 2.1%

3.9%

7.4%

8.5% 8.9%

10.0%10.6%

12.0%

0%

2%

4%

6%

8%

10%

12%

Final pay 2015

Captured TIF as % of tax base