Midland TIF board approves final downtown project and financing plan, sends recommendation to city council

The Midland Tax Increment Financing board on Tuesday approved a final project and financing plan for the city’s downtown reinvestment zone and recommended that the city council adopt an ordinance formalizing the plan.

The plan sets a city cap of $124,000,000 over a 30-year term and formalizes interlocal agreements with other taxing jurisdictions that cap their participation: the county at up to $24,000,000, the hospital district at up to $14,000,000 and the college at up to $15,000,000. Board members approved the recommendation by voice vote; the motion was made and seconded and carried on ayes recorded by the chair (board vote recorded as unanimous on the meeting record).

The board’s decision follows a presentation from a consultant who reviewed downtown tax-base trends and the financing plan. “There are two ways to create increment — new construction or annual appreciation,” the presenter said, describing the financing mechanics that feed a TIF fund. He and staff told the board they expect it could take roughly three to five years before the district generates meaningful incremental revenue unless new development accelerates or appraisal values change.

Why it matters

A TIF (tax increment financing) or tax increment reinvestment zone channels growth in property tax revenue above a base…