Tax Increment Financing (TIF) in Bettendorf
Tax Increment Financing (TIF) in Iowa is a great tool to assist with development. For the City of Bettendorf, TIF is used as a mechanism to support City Council's goals associated with economic development. At a high level, Bettendorf prides itself on using TIF to help a development/redevelopment by infusing support that'll springboard a project and get it off the ground. While TIF can take many shapes and forms, Bettendorf generally uses this tool in the form of "tax increment rebates". As base value for a project is agreed upon between the City and a developer; and from there, the City will rebate any new tax increment generated back to a developer for a mutually agreed upon period of time.
TIF rebates assure that a developer will perform as promised. Through a Development Agreement and a Minimum Assessment Agreement, both the City and the developer have surety that everyone's expectations will be met. Development Agreements provide guarantees and peace of mind for the City, and they can act as a financing "guarantee" for developer's.
When contemplating TIF incentives, a project must be located within an Urban Renewal Area, and should meet the goals and objectives of the City of Bettendorf. When considering a Development Agreement, some basic rules of thumb are adhered to by the City....
TIF shall be used to support:
- Removal of blight
- Job creation
- Increased commercial or industrial property value
- Redevelopment of a large tract of land that is economically distressed or underutilized
- Annual Goals set forth by the City Council
TIF shall not be used to support:
- Single Family Housing
- Multi-residential housing, unless it is within the Downtown corridor and within a target area defined by City Council
- Individual retail projects
- Projects that fall outside the scope of what has been set forth by State of Iowa legislation
No Two developments are alike, and the City of Bettendorf reviews each plan on an individual basis. If you have questions about TIF in Bettendorf, please call the City's Economic Development Office at (563) 344-4060.