Yonkers Chamber of Commerce Encourages City Officials to Move Forward on Tax Increment Financing (TIF) Discussion

eHezi Archives 2 Comments


YONKERS, NY – February 6,
2007 — The Board of Directors of the Yonkers Chamber of Commerce is
encouraging City officials to continue discussions on a Tax Increment Financing
proposal which would allow the City to create special districts and to make
public improvements within those districts that will generate private-sector
development.

      

Tax
Increment Financing is a tool used by municipalities for redevelopment and
community improvement projects that has been used throughout the

United States

for more than half a century
although the plan, if approved, would be new for the City of

Yonkers

.  With significant decreases
in federal and state funding available for redevelopment, TIF has become a
widely-used strategy to achieve growth and development.  The City of

Yonkers

would use the funds for public
area improvements, including replacing aging infrastructure.

The
Chamber recommends a "pay as you go" system, ensuring that funds
generated from the tax increment are spent concurrently with the progress of
the development/growth within the district.  During the development , the
tax base is frozen at the predevelopment level.  Property taxes continue
to be paid, but taxes derived from increases in assessed values (the tax
increment) resulting from new development either go into a special fund created
to retire bonds issued to originate the development, or leverage future growth
in the district.

"By
creating a pay as you go system, the TIF ensures that liability would not
exceed investment at any time", said Angelo Martinelli, Chairman of the
Yonkers Chamber of Commerce.  "This makes sense for the property
owners in the tax increment financing district, which would benefit from the
redevelopment without shouldering unnecessary taxing burdens during the
development process", added Martinelli.  The City Council should
adopt a redevelopment plan in its upcoming sessions so as to proceed with the
TIF proposal.

"

Yonkers

is uniquely positioned to be the
first municipality to utilize TIF in

New York

state. 

Yonkers

has predictable growth in its
future yet dated public infrastructure in the proposed TIF District" said
Kevin Cacace, Chamber of Commerce President.  "Linking the benefits
of growth, in terms of increased tax revenues, with expenditures to address the
public infrastructure upgrades that are needed to permit the contemplated
growth makes good business and economic sense", Cacace added.

Founded
in 1893, the Yonkers Chamber of Commerce is the voice of the business community
and its goal is to serve, guild and promote a more progressive city.

 

eHeziYonkers Chamber of Commerce Encourages City Officials to Move Forward on Tax Increment Financing (TIF) Discussion

Comments 2

Leave a Reply

This comment will be displayed anonymously. Your name and email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.