Council approves creation of a micro TIF program for small-scale projects in designated blight areas

Carly Gadecki, presenting on behalf of city staff, proposed a micro TIF program intended to expedite small-scale tax-increment financing for projects in designated blight or substandard areas. Carly described micro TIF as similar to traditional tax-increment financing but designed for smaller projects with a streamlined application, lower fees, and a two-year completion requirement.

City staff clarified that micro TIF projects would not use general city funds; rather, property owners or their lenders would finance projects and the city would act as a pass-through for increment remittance. The draft resolution discussed by staff would limit the number of micro TIF projects the city accepts each year and may include targeted guidelines prioritizing downtown facades and other high-impact small projects.

Staff said eligibility requires the property to be within an area already designated as blight and substandard; while the city may update or expand blight-designated areas, an individual property in an otherwise non-blighted neighborhood would not qualify unless the area had been designated. Questions from council and the public addressed whether wage or contractor restrictions apply; staff said there is no federal funding requirement tied to Davis-Bacon prevailing-wage rules for micro TIF and that projects must meet local building and land‑use codes.

Council President Dzabolotski moved to create a micro TIF program for the city; a councilmember seconded. The motion passed; the transcript records the outcome as "Recommendation passes" but does not record a roll-call tally in the transcript. City staff said the program would begin with an ordinance, an initial administrative process and outreach to possible applicants.