City Council holds off on two TIF votes
The New Hampton City Council on Monday night held off on approving two tax-increment financing (TIF) agreements, but gave the business owners involved assurances that they will be approved in the future.
TIF is used to help new businesses and current businesses to expand by allowing the firms to recoup the additional taxes they will pay on their property because of the improvements.
The theory is that businesses will use the taxes to help fund improvements, create more jobs and build a higher tax base.
But because of state law, the city must renew several of its urban revitalization areas. Those that were established before 1995 do not have expiration dates, but those established after that year only run for 20 years.
For more of this article, see Friday's New Hampton Tribune.