TIF: What is it?

Tax increment financing, according to the Tax Increment Finance Handbook published by the city of Springfield, is "a method for funding public facilities to support private development or redevelopment in targeted areas."

The purpose of TIF, the handbook said, is to encourage development that prevents or eliminates urban blight, as well as to stimulate the local economy through growth of the tax base and the creation of jobs.

According to online information from the Missouri Department of Economic Development, TIF may be used to pay for costs associated with redevelopment projects, such as studies, surveys, plans and specifications, land acquisition and preparation, professional services and construction for public and private improvements.

The Missouri DED's Web site said the state's TIF statute also requires a finding that without TIF funding, the projects in the redevelopment plan could not be done.

"This may be done in several ways, such as the lack of development at the project site; additional costs of redevelopment; a lack of private funds for the project; a projected pro-forma indication that the projected return on investment (without the TIF assistance) is below a market rate of return; or other methods," the site said.