Tax Increment Financing
What is Tax Increment Financing (TIF)?
TIF in Nebraska is primarily designed to finance the public costs associated with a private development project. Essentially, the property tax increases resulting from a development are targeted to repay the public investment required by the project. TIF provides a means of encouraging private investment in deteriorating areas by allowing city governments to devote all property tax revenue increases to repay the public investment needed to attract development. TIF can also be used to rehabilitate deteriorated buildings.
TIF is not a grant, and it is not a primary funding source for a redevelopment project. TIF does provide an incentive for private development that will increase the tax base. The property taxes generated from the increased valuation of the development can be captured for a period of up to fifteen (15) years to finance eligible improvements. Nebraska statutes allow TIF only when a project is not economically feasible without it.
To be eligible to receive TIF for a redevelopment project, the site or building must be located in a blighted and substandard area. See the City of Norfolk's comprehensive map of areas that have been declared blighted and substandard in the link below or click on the map.
Micro TIF is an expedited process with the same intent as TIF: provide a means of encouraging private investment in deteriorating areas by devoting all property tax revenue increases for up to ten years to repay the public investment needed to attract development and the costs to rehabilitate or replace deteriorated buildings.
Norfolk City Council adopted Resolution 2022-2 on January 18, 2022, authorizing micro-TIF in accordance with Section 18-2155 of Nebraska State Statutes which states that a redevelopment plan is eligible for expedited review if the following criteria are met:
The redevelopment plan includes only one project
The project involves the repair, rehabilitation, or replacement of an existing structure located within a substandard and blighted area
The project is located in a county with a population of less than 100,000 inhabitants
The existing structure is at least 60 years old and the assessed value of the property within the project area when the project is complete is estimated to be no more than:
$250,000 for a project involving a sing-family residential structure
$1 million for a project involving a multi-family residential or commercial structure
$10 million for a project involving the revitalization of a structure included in the National Register of Historic Places
The one-page application form, which also serves as the Redevelopment Plan, is available on the Nebraska Department of Economic Development's website and is submitted to the City of Norfolk's Finance Officer along with a $50 application fee. Redevelopment Plans meeting the requirements for expedited review shall be approved by the City Council within 30 days of submission. The project must be completed within two years after the City Council approves the Redevelopment Plan.