Funding allocation for proposed Cleveland tax increment financing program to be reviewed – Observer

Cleveland Mayor Justin Bibb introduced a bill to the Cleveland City Council on January 9, asking for permission to implement a large-scale tax increment financing program (TIF). This type of funding plan has never been implemented in Cleveland before. The program’s primary goal is to revitalize isolated and abandoned downtown waterfronts on the Cuyahoga River and Lake Erie, funded by future property tax increases.

The proposed ordinance states that the program would provide “tax increment financing under the TIF Act to create a “Coast-to-Core TIF District” to create, capture, and capitalize on growth in downtown Cleveland and the Near West. “Implement the program.” We support strong public infrastructure investments that benefit all Clevelanders, strengthen our waterfront and downtown, and fund investments in parks and recreation across Cleveland neighborhoods. ”

Bibb said the city’s significant investment in public infrastructure along the Cuyahoga River and Lake Erie waterfronts will spur economic growth and generate billions of dollars that would not otherwise be possible. .

Earlier this month, the City Council considered and revised the proposal.

City Council President Blaine Griffin said he wants to ensure that half of the funds raised through this project will help improve city neighborhoods. Bibb and his team agree that some of this revenue should be used to improve Cleveland’s neighborhoods, but say it’s too early to determine the exact amount. .

Over the next 42 years, Bibb predicts the Downtown TIF program will generate between $3.3 billion and $7.5 billion in revenue. He believes most of the money should be reinvested in downtown, waterfront areas and the central business district to foster future growth and reverse decades of decline.

After a series of discussions and an exchange of potential numbers, the council agreed to lower the request from 50% to 35%.

The amount of money city officials may spend on waterfront and downtown renovations has not been disclosed, and the TIF district’s revenue potential is still unknown. As a result, it is unclear how much “excess income” they will actually receive. For this reason, Mr. Bibb and Mr. Griffin are seeking a community benefits agreement with the developer to provide immediate financial assistance to nearby residents.

Once the budget hearings conclude by the end of this month, the TIF district bill will go through a City Council hearing.