What is it?
A Community Redevelopment Area (CRA) is an area recognized as under-developed and needing investment, but where development cannot easily happen without some public expenditure (e.g. a road diet). This designation allows new development in the area to take advantage of an incentive called Tax Increment Financing (TIF).
When an area has CRA, a developer can apply for Tax-increment financing (TIF). When the city accepts the application, it's because they are betting that this development will increase the surrounding property values. The city peers into the future, guesses how much surplus property tax they'll get 15-30 years from now, and advances themselves that money up front, to invest in infrastructure to improve the area for the proposed development (e.g. streets, sidewalks, sewers, lights, etc.), or even to help make the development possible by underwriting some of the developer's costs. Then, over time, as the area becomes more attractive and property values rise, the city pays itself back from that surplus.
A Community Redevelopment Area (CRA) is an area recognized as under-developed and needing investment, but where development cannot easily happen without some public expenditure (e.g. a road diet). This designation allows new development in the area to take advantage of an incentive called Tax Increment Financing (TIF).
When an area has CRA, a developer can apply for Tax-increment financing (TIF). When the city accepts the application, it's because they are betting that this development will increase the surrounding property values. The city peers into the future, guesses how much surplus property tax they'll get 15-30 years from now, and advances themselves that money up front, to invest in infrastructure to improve the area for the proposed development (e.g. streets, sidewalks, sewers, lights, etc.), or even to help make the development possible by underwriting some of the developer's costs. Then, over time, as the area becomes more attractive and property values rise, the city pays itself back from that surplus.
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Risks: What to be aware of as we go forward
These articles do a good job summarizing the essence of TIF and its pros and cons: https://www.useful-community-development.org/tax-increment-financing.html https://www.goodjobsfirst.org/accountable-development/tax-increment-financing Rewards: Why it's important for Center Street This will help with the community's vision for Diverse Local Businesses as well as Safe, Pedestrian Friendly Street Redesign. Once the area is designated a CRA, a developer with a project can apply for TIF. If awarded, this funding can be used to improve the infrastructure of the area, including a road diet to add on-street parking and allow the city to approve rezoning. A CRA that is TIF-eligible is also very appealing to developers because it offers them the possibility of a tax incentive for developing there. Having it in place also means that any new projects will be contributing to improving the whole street, not just their property. |
More of a visual learner? Watch this video produced by the Columbia Missourian to understand how TIF works and the benefits it can have on one's neighborhood.
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How You Can Help with CRA Designation
We have already asked Councilman Jerram to start the 8-month process of pursuing CRA designation. However, the city will want to know that the neighborhood supports this designation. Show that you support the change!
Sign up for the email list and keep an eye on your email.
We have already asked Councilman Jerram to start the 8-month process of pursuing CRA designation. However, the city will want to know that the neighborhood supports this designation. Show that you support the change!
Sign up for the email list and keep an eye on your email.
