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Athens creates Tax Increment Financing District No. 4 to fund nearby infrastructure
Summary
The Athens City Council voted 4-0 to establish Tax Increment Financing (TIF) District No. 4 covering parcels near Lucas Ferry Road and Elm Street; city staff said the captured incremental tax revenue will reimburse the city for public improvements such as sidewalks, water and sewer work.
ATHENS, Ala. — The Athens City Council unanimously approved the creation of Tax Increment Financing District No. 4 on Sept. 22, 2025, a move city officials said will capture increases in property tax revenue within a defined area and use those funds to reimburse the city for public infrastructure projects. The district covers parcels near the planned Food City site at Lucas Ferry Road and Elm Street. City staff said the captured increment is not a new tax but the portion of future increased revenue that results from development. The council voted 4-0 to adopt the TIF district plan (Exhibit A) after a public hearing and staff presentation. Justin, a city staff presenter, and Aaron Tidwell, city planner, outlined that TIF proceeds would be limited to projects identified in the district plan — for example sidewalks, streets, water and sewer infrastructure — and could be used to reimburse the city for those improvements. "This is not a proposed new tax," staff said during both the work session and the public hearing. During the council's public hearing, residents asked for more detail. Scott Marshall said the agenda lacked background materials that would let citizens review the plan before the meeting, and asked that maps and explanatory materials be made available earlier. Resident Billy Cannon requested a line-item financial breakdown of the three existing city TIFs and their current payback status; council staff said they would provide those figures to the public. The council resolution establishing Tax Increment Financing District No. 4 was adopted by roll call, 4 yeas, 0 nays. The city said taxing entities that receive property taxes from the area, such as Athens City Schools and Limestone County, were offered an opportunity to review the plan and that staff had already spoken with those entities. The council and staff emphasized that captured TIF revenue is restricted to the redevelopment area and to projects identified in the district plan; staff also said TIF funds cannot be used for unrelated purchases such as general equipment. The city will present the district plan publicly again as required and will proceed with the administrative steps in the TIF plan.
