TIF for Projects on Detroit Avenue

Isaiah Jelinek, Economics Reporter

Two former car dealerships are getting redeveloped in Lakewood, Ohio.  This TIF incentive is a non-school variety which means schools won’t be cut out of the property tax increase. This TIF incentive will allow for the economy to improve because two different car dealerships are getting redeveloped which means that they are getting improved once more which will allow them to have access to tools that will allow them to make better cars.

“Leininger said that spread over a 30-year period, $5 million is tied to the former Barry Buick site and $4.3 million to the former Spitzer site.” “Lakewood Director of Planning Shawn Leininger said the common and well-established economic development tool captures the incremental increase in property taxes resulting from new development or redevelopment and repurposes the taxes as payments toward public and private infrastructure.” Leininger said. “This is currently more than $72,000 on the former Barry dealership and $45,000 on the former Spitzer dealership.”

What this statement goes to show is that the money that is going to be taxing Lakewood citizens is supposed to go to both private and public infrastructure. This also shows us that the TIF incentive will not only help to improve the two car dealerships mention earlier but also roads, pipes and buildings such as schools, or even stores.

“Upon completion, the planning director said the estimated $23 million redevelopment of the former will result in $870,000 in annual property taxes, while the $20 million redevelopment of the latter will yield $740,000 in annual property taxes.”

This shows us that $1.61 million will come from annual property tax.

Tax increment financing (TIF) is a public financing method that is used as a subsidy for redevelopment, infrastructure, and other community-improvement projects in many countries, including the United States.