The Lincoln Township Board of Trustees is researching a potential policy on recouping public safety revenue lost as a result of tax increment financing plans.
TIFs enable a municipality to offer developers partial reimbursement for their investment by capturing the growth of taxable value on a property over a period of years. TIFs have become popular in Berrien County as a way to incentivize residential developments, but Lincoln Township Supervisor Glenn Youngstedt tells us they come at a cost to the community. He says trustees want to determine how and when another measure could be used to soften the effect.
“I suspect most townships and cities really don’t have criteria they use, and these things can last 30 years,” Youngstedt said. “That means you’re not getting the increment increase in taxes for that whole period of time. And that could be a lot of money.”
Speaking at the board of trustees regular meeting Tuesday, Township Manager Kacey Dominguez said she’s been researching other communities with policies to recoup some TIF losses.
“There are a handful in Michigan,” Dominguez said. “There’s not many right now, but I think it’s going to grow with more municipalities and seeing their loss of public safety revenue and roads revenue without getting, the demand will increase without getting any more revenue.”
Dominguez said she’s so far spoken to one such municipality. Trustees instructed her to seek out more to help develop a policy locally.
The board last month tabled a brownfield TIF plan for the Red Arrow Bluffs apartments planned at the site of the former Snowflake Motel on Red Arrow Highway to further discuss the development’s “community benefits package.”
