CPS board hears more information on Broadway TIF; district wouldn’t see money right away
At Monday night’s school board meeting, the Broadway Hotel owner and city representative presented to the Columbia School Board about the desire for expanding the hotel with the use of a TIF (tax increment financing).
At a prior finance committee meeting, the committee discussed how the Broadway TIF could impact them financially.
The committee was in the understanding that the district would see the benefit of the TIF after the building of the new tower was complete. However, during the Monday night’s meeting it was discussed how the district wouldn’t see the additional taxes until 23 years later, when the TIF expires.
ABC 17 News got our hands on preliminary numbers last week that show what the financial situation would look like over the 23 years the TIF would last.
Currently the district receives $3,459 for the property the second tower would sit on. The property is valued at a total of $4,505, CPS receives the largest portion of it. This means the district would see $3,459 for 23 years and after the 23 years they would start to see the benefit that the new tower would bring with the increased property value.
Anna Munson, Columbia’s chief financial officer, told ABC 17 News there are pros and cons to every TIF proposal the district hears.
“We do receive a reduced amount of revenue if a TIF is approved,” Munson said. “Whether the TIF is approved, or not the revenue stream would be greater if the property is developed than if it’s not.”
If the TIF doesn’t get approved but another company decided to develop on that land that the second tower sits on, the district would see more of an increase.
The board is expected to vote on the TIF at their October work session.
Editor’s note: This article was previously named “CPS could see hundreds of thousands more a year if Broadway TIF is approved.” This was changed to reflect what was discussed at the Columbia School Board meeting on Monday.
