Tax Increment Financing (TIFs):
- TIFs are a financing tool used to stimulate private investment and development in targeted communities
- Finance Authority benefits include access to capital markets, tax-exempt financing and longer terms
- The Finance Authority has issued bonds to finance tax-increment financing projects supporting the Pointe mixed-use development project and the St. Clair Commons public infrastructure project
Through TIFs, communities can capture increased tax revenue generated by a development. The community can then redirect those tax revenues to pay back the private developers that footed the initial bill for the public improvements required to make the new development a success. The Finance Authority can provide support for TIF financing through its Central Ohio Bond Fund, accessing its investment-grade rating to allow for a longer term, lower cost of capital for projects.
Driving Development at the Pointe
Through our partnership with Vision Development, the Finance Authority issued $4.1 million in tax increment financing bonds to support the mixed-use project in Hilliard. The proceeds will be used to finance various public improvements, including a road extension that will connect Mill Run to Tuttle Mall. Read more about this project in Columbus Business First.
Leading Private Investment at St. Clair Commons
Another example of TIF financing being used effectively is St. Clair Commons, a mixed-use development in St. Clairsville, Belmont County. The campus is being created to promote healthy lifestyles for those who live and work in the area, and will include 100 units of senior living apartments, a health and wellness center, a hotel and multi-family housing. Working with project developers GDNG, the Finance Authority issued $2.3 million to finance public improvements such as landscaping, lighting and utilities.
The Finance Authority would like to thank our transaction partners, DiPerna Advisors and Roetzel & Andress, for their assistance on the financing.
If you’re interested in how we can partner on your next opportunity, feel free to reach out to us at [email protected]org, call 614.429.0177 or visit our website at www.columbusfinance.org.