Northern cities are scrambling for ways to retain existing industries and to
attract new ones that otherwise might locate in the
The trick is to find ways to provide incentives for businesses without having to pay cash for them. Some incentives (like conditional use permits) carry no costs; others (like providing staff assistance to develop an environmental assessment) carry in-kind (non-cash) costs. Tax increment financing provides a means for providing incentives which carry real costs, but paying those costs from the increased tax revenues generated by the project itself. In other words, it is a means of borrowing against the speculative gain a project should bring.
© 1996 A.J.Filipovitch
Revised 11 March 2005