Tax Increment Financing (TIF) is one of the few public financing tools available to municipalities in the State of Minnesota. Since the 1970s it has been used sparingly in Edina to achieve redevelopment goals. Overview: TIF Fact Sheet 1 (PDF)
How Does It Work?
When a TIF District is created, a base valuation of the property in that area is established. All taxing authorities continue to receive tax revenue from the base valuation. Taxes from increases in assessed value go to the TIF account and pay debt or other financial obligations necessary to complete the redevelopment project. After the obligations are met, the TIF District closes and all taxing authorities benefit from the new, higher valuation. FAQ: TIF Fact Sheet 2 (PDF)
What Benefit Does the Public Get From TIF?
Blight mitigation or elimination
Some Projects TIF Helped Make Happen
50th and France
Centennial Lakes Park
Rules for TIF
TIF Districts and use of TIF is governed by Minnesota State Law. The City's use is further restricted by policies established by the City Council and Housing and Redevelopment Authority.